DGML identifies 15 gold mining locations in Karnataka

Bangalore, 8 March 2004 :

Deccan Gold Mines Limited (DGML), India’s first publicly listed gold exploration company, has identified 15 prospective locations in South India for gold mining. The company had successfully completed its rights issue recently for an amount of Rs. 5 crore meant to be utilized for undertaking detailed exploration.

These prospects areas are North and South of Hutti, Ramagiri Goldfields, Mangalur RP block and Dharwar Shimoga RP blocks. Other than the Ramagiri Goldfields which is located in Andhra Pradesh, all of its prospects are located in Karnataka.

“A common feature of all these prospects other than the Dharwar Shimoga RP blocks are that they are located adjacent to gold mining centres,” company officials said. Historically, most new discoveries made internationally have been where gold mining activities were previously undertaken.

“Dharwar Shimoga RP Blocks offer the potential for open pittable mining operations. Our geologists have identified 15 prospects in this block containing gold mineralization.

DGML plans to undertake drilling operations in this area within the next two weeks to substantiate the surface sampling and trenching results,” officials added.

DGML’s North Hutti prospects, located adjacent to the world class Hutti deposits features extensions of gold reefs that are currenly being mined by the Hutti Gold Mines Ltd.

Exploration efforts to date have yielded encouraging results. Intensive drilling is proposed in the area leading to feasibility studies to potentially define the quantum of gold contained in the reefs. The Hutti Gold Mines have producted about 50 tonnes of gold to date.