China National Gold Group Corp, the country's largest gold producer, has won exploration rights for Yangshan Gold Mine, the largest prospected gold deposit in China, said a source close to the situation Friday.

The company beat Zijin Mining Group Co, Zhaojin Mining Industry Co and Shandong Gold-mining Co by offering the highest bid, plus its more advanced technology and management expertise, the source said.

But neither the company nor the Gansu provincial government, which was responsible for evaluating exploration bids, could be reached for comments.

China's largest nickel miner Jinchuan Group Ltd will form a JV with China National Gold and pay 40% of the bid amount, and will also help develop the gold mine.

Yangshan Gold Mine, founded in 2007 in northwest China's Gansu province, is also the largest Carlin-type gold mine in Asia and the sixth largest in the world. It is estimated to have deposits equivalent to at least 308 tons of gold, in the high grade "96" vein ore. The value of these deposits works out to over US$9.93 billion on the basis of spot gold price of US$910 per ounce on Friday.

The JV will earn an annual output of 2 to 5 tons, with an estimated profit of RMB 300 million each year, according to analysts.