Gold’s appeal in China is shifting as investors turn to gold bars and coins as a way to gain exposure to the precious metal.
According to the China Gold Association’s latest data, the nation’s total gold consumption rose slightly by 1.23% to 511.41 tonnes in comparison to 505.21 tonnes the previous year.
Jewellery demand fell 33.88%, while bullion and coins demand rose 28.42% to 339.34 tonnes, as reported by the Shanghai Metals Market (SMM).
In parallel with the shift in demand, SMM reports that domestic supply contracted. China’s mining output from its own raw materials fell by 14.62% to 152.91 tonnes.
SMM says this is due to regulator environmental requirements and safety inspections, leading to temporary shutdowns. By contrast, the processing of imported ores rose by 4.62% to 77.08 tonnes.
Overall, domestic production decreased by 9.01% to 229.99 tonnes.
At the time of writing, gold price fell below US$4,350 ($6,389.32) an ounce, extending losses from the previous session as investors locked in profits while assessing the US Federal Reserve’s policy outlook and developments in the Middle East.
Over the past month, the precious metal’s price has risen 8.16% and is up 31.63% compared to the same time last year, as reported by Trading Economics.
With gold prices remaining elevated and investment demand providing another layer of support, attention turns to the companies exploring for new deposits capable of feeding future supply.
Western Australia: Auric Mining
Australia contains the largest known gold resources in the world, particularly in Western Australia. As such, several companies are working to uncover more gold deposits and resources to support the increased demand consumption.
For example, Auric Mining (ASX:AWJ) recently began a 135-hole reverse circulation drilling program, targeting extensions to the Munda Gold Mine resource in Western Australia.
With a resource of 145,000 ounces of gold, Munda is considered a major component of Auric’s strategy.
Managing Director Mark English says the 12,900m drilling campaign forms part of the company’s preparations to resume mining at Munda.
“After the recent 32% increase of the Munda gold resource, we look forward to this next drilling program, which we anticipate will continue to expand the substantial resource,” he says.
“All this drilling is a key part of the plan to rapidly progress the greater Munda and Burbanks operations as we transform the company into a fully integrated mining house when mining at Munda recommences in late 2027.”
At the Starter Pit within Munda, around 6,100 ounces of gold is expected to be produced from 125,000 tonnes of ore grading 1.8 grams per tonne.
Victoria: Rafex Gold
Over in Victoria, Australia, near-term gold producer Rafex Gold (OTCPK:RAFX) owns the Bendoc, Mt Bute, and Rutherglen projects.
At Bendoc, drilling has defined a non-JORC compliant resource of 94,000 ounces. The gold is controlled by a north-south fault system, which is a major structure extending for more than 13km and is mostly unexplored with modern methods.
Mt Bute is located near major west-dipping geological faults which are considered essential to hosting major gold deposits in Victoria. The company says there is potential for another Sovereign Hill-style deposit hosting many millions of ounces.
Meanwhile, Rutherglen is a previous production asset, producing 1.4 million ounces of gold up until 1920. The project’s exploration target is more than 300,000 ounces of gold. Rafex says geophysics is expected to add value by defining the depth of the deep leads.
Côte d’Ivoire: Many Peaks
Over in Côte d’Ivoire, Many Peaks (ASX:MPK) has been accelerating exploration across its assets, as previously reported.
At the Odienné Project, surface induced polarisation and gradient array field surveys identified anomalies associated with gold mineralisation. These anomalies extend into undrilled areas at the Zone A and Zone C prospects.
Meanwhile at the Ferké Project, a third drill rig has been mobilised to site to target down-dip and strike expansions alongside additional delineation of the interim Ouarigue mineral resource.
In July, Many Peaks exercised its option to acquire the Baga Gold Project, also located in Côte d’Ivoire, with a 14,000m auger drilling program underway.
The auger drill program will comprise 2,300 holes targeting multiple zones of coherent gold anomalism, including multiple targets trending along favourable structural orientations associated with lithological complexity in the region.
Over 7,500 samples have been collected, as part of a wide-spaced reconnaissance program with 400-800m in line spacing. Results suggest that Baga hosts more than 16km of gold anomalism within the project’s footprint.
California: North Bay Resources
On the processing front, North Bay Resources (OTC:NBRI) owns the Bishop Gold Mill in California, US. The facility processes up to 100 tonnes of gold ore per day.
In November 2025, the company expected to deliver a gold ore shipment, weighing 10.25 tonnes, to the Bishop Gold Mill. Ore was processed to produce a concentrate for delivery to North Bay’s refinery partner in Reno, Nevada, US.
The company also owns the Fran Gold Project in British Columbia, Canada, where North Bay has been moving from ‘high-grade’ gold discovery into processing, refining, and the beginnings of cashflow, as this news service reported.
Fran is located next to Centerra Gold’s (TSX:CG) Mt Milligan Mine. The project’s east zone represents a zone of gold and increasing copper resource expansion potential. The deposit also remains open to the south and at depth.
Against this backdrop, China’s growing appetite for physical gold offers another reminder of the demand story underpinning the gold sector — as well as why the exploration and development pipeline is critical to keep that story going.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock, Auric Mining, & Many Peaks
