Geologists have discovered a large gold deposit worth a potential $6.46 billion in northwest China's Xinjiang Uygur Autonomous Region, local officials said on July 29.

With at least 127 tons of proven reserves, it is the largest gold deposit ever discovered in resource-rich Xinjiang.

It is located in Uqar County, which borders Kyrgyzstan in west Xinjiang, according to the Xinjiang Regional Bureau of Geology and Mineral Exploration and Development.

"It's expected the total reserves will exceed 200 tons," said Cui Hongbin, head of the exploration team.

The discovery will not only increase China's gold output, which totaled 211 tons in the first half of this year, but will also benefit local revenue and employment, Cui said.