Deccan Gold Mines to explore gold

PM News Bureau, Project Monitor, 16-31 Jan 2004 :

Deccan Gold Mines Ltd is venturing into gold exploration in Karnataka and Andhra Pradesh. Gold exploration is aimed at ascertaining the correct length, width and depth of zone and gold grade. The company will be exploring four prospects located at North Hutti, South Hutti and Mangalur in Karnataka, and Ramagiri in AP. Hutti Gold Mines Company Ltd, a Government of Karnataka undertaking, is the only other prominent player in gold exploration and mining. Group company Geomysore Services (India) Pvt. Ltd has reconnaissance certificate (RP) for three prospects while another group company, Indophil Resources Exploration Services (India) Pvt. Ltd, has RP for another prospect. Both these companies are in the process of transferring their reconnaissance certificates to Deccan Gold Mines.

The company plans to invest Rs 4.9 crore in the project of which Rs 3.48 crore will be spent on exploration programmes at the four prospects while the rest of the funds will go towards related expenses like camp infrastructure, tools, equipments, office infrastructure, experts’ fees and preparation of DPRs. The total cost of the project will be funded through a rights issue of shares. The entire exploration work is expected to be completed by December 2004.

Deccan Gold Mines has been promoted by Rama Mines (Mauritius) Ltd which in turn has been promoted by the shareholders of Australian Indian Resources Pty. Ltd (AIR), a company with interests in exploration leading to mining worldwide. AIR, through its subsidiaries and associated companies, has applied for 62 reconnaissance certificates of which 27 RPs have been executed, spread over nine states in India, while applications for 5 Prospective Licences (PL) have been lodged. These RPs have been awarded principally for prospecting gold, nickel and diamonds. AIR is planning to invest Rs 50 crore in the next two-three years in mining operations in India.