Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
Last month, the Geological Bureau of Hunan Province (GBHP) of China announced a major breakthrough at the Wangu gold field, where over 40 gold veins were discovered in geological strata above a depth of 2,000 meters (6,600 feet). The core exploration zone has confirmed a total of 300.2 tons of gold resources, with maximum gold grades reaching an impressive 138 grams per ton. This discovery represents an ultra-large, high-quality gold deposit that could potentially become the largest known natural gold reserve in the world.
Amid increasing demand for safe-haven assets, gold prices have been steadily climbing this year, repeatedly reaching historic highs. Many market analysts remain optimistic about the long-term upward trend of gold prices. Recently, Goldman Sachs reiterated its forecast of gold prices hitting $3,000 per ounce, while UBS predicted an increase to $2,900 per ounce by the end of 2025.
Using 3D computer modeling, experts estimate that the Wangu gold field may hold additional prospective gold resources exceeding 1,100 tons (1,000 metric tons) at depths of up to 3,000 meters. If confirmed, this would bring the deposit’s total value to roughly ¥600 billion (approximately $83 billion) at current gold prices. This figure would surpass that of South Africa’s South Deep gold mine (estimated at 930 metric tons), making it the largest natural gold reserve on record.
In addition to its impressive estimated reserves, the gold ore’s grade is remarkably high. Officials revealed that the maximum quality of the new deposit was 138 grams of gold per metric ton of ore, which is considered an exceptionally high figure. Gold grades above 25 grams per ton are generally classified as high-grade deposits.
Chen Rulin, an ore-prospecting, revealed that the efficiency of this exploration is especially exciting. At depths above 1,500 meters, 48 out of 55 drilled holes revealed gold, resulting in a success rate of 87.3%. Furthermore, even at depths nearing 2,000 meters, test drills uncovered gold, highlighting the extraordinary scale and potential of the deposit. GBHP official Wu Jun stated that exploration is ongoing, with plans to further investigate peripheral and marginal areas to identify up to an additional 700 tons of gold resources.
Despite being the world’s largest gold producer, contributing approximately 10% of global gold output in 2023, China’s gold consumption is three times greater than its production. As a result, China relies heavily on imports from countries like Australia and South Africa to meet its gold demand. While this new discovery may ease some supply-demand pressures, it cannot completely resolve the nation’s gold shortfall. Based on current consumption levels, the Wangu deposit’s total reserves would only satisfy about 1.4 years of domestic demand.
Chinese experts highlight that the breakthrough at the Wangu gold field holds significant implications for the country’s “new round of mineral resource discovery strategy,” resource security, and national economic development. The deposit is not only massive in scale but also poses relatively low challenges for mining and processing, making it an attractive and accessible resource. Experts estimate that mining at a sustainable rate of 5 tons of gold annually for the next five years would be a reasonable scale of production.
