According to the Financial Association on November 24 (Reporter Huang Lu), following the discovery of over 1,000 tons of long-term gold reserves at the Wangu Gold Mine Field in Pingjiang, Hunan, valued at 600 billion yuan, the stock price of Hunan Gold (002155.SZ) hit the trading limit for two consecutive days. The company announced this evening that its subsidiaries and those of its controlling shareholder have a total of 6 mining rights and 10 exploration rights in the mining area; the reported gold grade, gold reserves, and other information about the mining area were biased.

The announcement shows that the Wangu Gold Mine Field includes 1 mining right and 3 exploration rights owned by Hunan Gold Corporation's wholly-owned subsidiary, Hunan Gold Dong Mining Co., Ltd., 5 mining rights and 7 exploration rights owned by the controlling subsidiary of Hunan Gold Group Co., Ltd. (hereinafter referred to as "Hunan Gold Group"), as well as surrounding exploration rights and undefined blank areas owned by other private entities.

Hunan Gold Corporation stated that in June 2021, the company signed the "Industry Cultivation Agreement" with Hunan Gold Group, and the company has the priority right to purchase the cooperative development project of gold mineral resources in Pingjiang County. Currently, the company is actively promoting this project with Hunan Gold Group, and the ultimate gold resources to be injected into the listed company will be based on the reserves submitted to the Hunan Provincial Department of Natural Resources for review and filing for the "integrated exploration" project of the Wangu mining area.

Hunan Gold also stated that there are inaccuracies in the reported information, among which, "the highest gold grade is 138 grams per ton" refers to the部分 drill core sample tested during the exploration process, which cannot fully reflect the overall mineralization conditions of the area.

Furthermore, the report stating "the estimated underground gold reserves exceeding 1,000 tons at a depth of over 3,000 meters" is based on previous years' scientific deep drilling discoveries and the distribution of confirmed resources at higher levels. The projected resource quantity (including an accumulated gold resource of 300.2 tons in the exploration core area) relies on these estimations, and subsequent systematic geological exploration work is still needed. The final amount of discovered resources has a degree of uncertainty. Due to the influence of current mining techniques, there is uncertainty regarding whether and when this portion of resources can be extracted.

In addition, the reported "accumulated gold resources of 300.2 tons found in the core exploration area" are the gold resources accumulated by the Hunan Provincial Geological Institute over the years in that area. It is understood that some gold resources have already been mined and consumed, and the remaining amount of gold resources still needs to be confirmed after the integrated exploration work of the Wangu mining area is completed and reviewed by the Hunan Provincial Department of Natural Resources.

Benefiting from the rise in gold prices, Hunan Gold's revenue for the first three quarters of this year was 20.989 billion yuan, a year-on-year increase of 11.93%, with a net income of 0.667 billion yuan, a year-on-year increase of 73.56%. In terms of product distribution, gold accounts for the majority of Hunan Gold's business, but from the perspective of resource self-sufficiency rate, the company's gold production is not high. In the first half of the year, about 27 tons of gold were produced, with only 1.96 tons being self-produced.