Deccan Gold Mines finds deposits at Dharwad-Shimoga basin

Bangalore, 5 April 2004 :

DECCAN Gold Mines Ltd has said that it has found “feasible” gold-bearing ore deposits at the Dharwad-Shimoga basin where it started drilling about two weeks back.

The “intersections” were found at depths of 42-45 m and were estimated to produce gold grades of two to 13.94 grams a tonne and averaging 3.9 g per tonne, Deccan Gold said on Monday.

The company is the first private sector gold exploration company listed on the BSE.

Preliminary drilling has thrown up a 400-m-long mineralised strike zone and it will be followed up with further drilling to fix the exact size of the gold-bearing area, the company said.

Deccan Gold said that it planned to take up drilling in its North Hutti basin, probably in May.

The area is north of the country’s only operating gold mines, where the State-owned Hutti Gold Mines Ltd is operating.

The Deccan Gold Chairman, Mr Charles Devenish, said: “These early results are extremely positive and indicate a strong possibility for an open cast gold mine similar to the type of gold mines operating in Australia today.”

Mr Sandeep Lakhwara, Director, said: “Post-rights issue, our drilling activity has been ramped up significantly.

The Dharwad-Shimoga block, with its potential for an open pittable mine, has given good results. An open pittable mine can become feasible with gold grades of around 2.9 g/t.”

The company has brought Mr Vince Roberts, a senior exploration geologist from Australia, into its team.

He will be based in Bangalore.