Chinese geologists confirmed on Tuesday that they have discovered a large gold deposit with estimated reserves of 21 metric tons in south China's Guangdong Province.

It is the third such gold deposit in the province and has a potential value worth billions of yuan, sources with the Guangdong Geological Bureau said.

The deposit is located in western Guangdong and its main body measures about 800 meters long, sources said.

In addition to the gold, the deposit also has reserves of silver of about 26 metric tons, according to the bureau.

Two other gold deposits, each with reserves of over 20 tons, were found in Guangdong in the 1980s and 1990s.

Guangdong is one of China's major gold producers. As of 2010, there were five gold mining companies in the province, with annual investment in the gold market of up to 100 billion yuan (16.13 billion US dollars).