Deccan Herald News Service, Deccan Herald, Bangalore, 1 May 2004 :
Bangalore: Deccan Gold Mines Ltd plans to conduct initial feasibility study on economies of mining by the year-end, according to Director Sandeep Lakhwara.
Briefing reporters here on Friday, he said, following the study’s recommendations they hope to commence mining operations sometime next year-end. Further, he pointed out, it would be profitable if extraction costs worked out to around US $400 per ounce.
The company, which has so far invested Rs 18 crore, envisages capital expenditure ranging between Rs 40 crore to Rs 50 crore for the purpose. It would explore several options to raise necessary funds. This could be by entering into joint ventures with MNCs, approach bullion banks or through another public/rights issue, he explained.
Currently, the listed company has majority stake held by Mauritius-based Rama Mines with 85 per cent stake.
Meanwhile, according to Geomysore Services (India) Pvt Ltd Chief Geologist & Director V N Vasudev, Deccan Gold’s reconnaitory drilling operations in Haveri and Dharward districts have yielded encouraging gold values at the surface. The company has completed preliminary drilling activities in four of the 22 exploration targets in the Dharwad-Shimoga block comprising an area of 5000 sq kms.