DGML Acquires New Rig; Scouts For JV Partner

Commodities Bureau, Financial Express, 25 September 2004 :

MUMBAI, SEPT 24: Deccan Gold Mines Ltd (DGML), India’s leading gold exploration company, has announced at its AGM that it had acquired a “Reverse Circulation” rig suitable for drilling targets. The special purpose rig was built in Bangalore.

Mr Charles Devenish, DGML’s Chairman, said: “India has very few RC rigs. We were unable to source a suitable rig which could be used for undertaking exploration activities. Besides, hiring rigs is very expensive. The only alternative was to commission our own rig with a team of drillers to operate the machine. We have now done that. The benefits to the company will be enormous.”

The company has also informed that they had been approached by large multinational gold producers to enter into joint ventures in order to promote fast track development of some of its prospects. The company directors had also recently undertaken a trip to London, and elsewhere, to determine the interest of investment bankers in sourcing additional capital for the company.

Mr Sandeep Lakhwara managing director DGML, saidL: “We met a few investment bankers, mining entrepreneurs, mining houses and some very high net worth individuals. Their interest in our activities and their response was very encouraging. London has been recognized as a prominent and traditional hub to source mining capital.

Our whole motivation is to deliver potential gold deposits in the shortest possible time by undertaking detailed exploration on our prospects.