Deccan Gold Identifies 15 Prospects In Dharwar-Shimoga RP Block

Our Commodities Bureau, Mumbai, 4 March 2004 :

Deccan Gold Mines Ltd (DGML) has identified 15 prospects in the Dharwar-Shimoga block containing gold mineralisation. DGML plans to undertake drilling operations in these area within the next two weeks to substantiate the surface sampling and trenching results, company officials told in a press conference on Wednesday.

Dharwar-Shimoga RP blocks offer the potential for open pittable mining operations as the average grade of ore is around 2-3 grams per tonne, said Mr Sandeep Lakhwara, DGML Director said.

Mr Lakhwara said, apart from Karnataka, the company has found encouraging prospects for gold mining in Andhra Pradesh, Maharashtra, Madhya Pradesh and Chattisgarh and Jharkhand.

Dwelling on the prospects for gold in India, DGML chairman Charles Devenish said, India has great scope for gold mineralization as “the geology of India is similar to that of Western Australia”.

India has great scope for gold mineralization as “the geology of India is similar to that of Western Australia”

DGML has applied for 4 mining leases spread over an area of 60 acres near Dharwad. It has also applied for 6 prospecting licences, spread over 55 sq km, Mr Lakhwara said.

DGML successfully completed a rights issue for an amount of Rs 4.9 crore recently. About 10 per cent of the rights entitlement of the promoters were renounced to the Indian public, in keeping with the company’s objective of increasing Indian participation in the company’s activities, Mr Lakhwara said. The company’s paid-up capital currently stands at Rs 5.14 crore.

It has so far expended Rs 16 crore on prospecting gold, officials informed.