DGML sees golden prospects near Haveri

Bangalore, Vijay Times, 1 May 2004 :

Vijay Times News

Deccan Gold Mines (DGML), the first listed private sector gold exploration company, has stumbled upon gold deposits in Ganajur near Haveri. Thrilled with the encouraging results, DGML officials are planing to speed up exploration in this region to initiate production activities.

Talking to newsmen on Friday, DGML Managing Director Sandeep Lakhwara said that they have just completed reconnaitory drilling operations in Haveri and Dharwad districts in North Karnataka. The drilling was carried out in the last week of March under the gguidance of the company’s chief Consulting Geologist Dr. VN Vasudev.

According to Dr Vasudev, the Dharwar Shimoga block comprises an area of about 5000 sq.km. in which DGML has identified 22 independent exploration targets – Ganajur, Mangalagatti, Bhavihal and Lakkikoppa. An exploration programme has been drawn up for the remaining 18 targets in the block.

Vasudev said, “A 470 metre long and 27 metre wide mizeralized zone has emerged at Ganajur as a result of this drilling. The zone has potential to host an open pittable gold deposit with an inferred resource of about 60000 ounce or 2 tonnes of gold.”

Further detailed drilling will be undertaken using advanced techniques to determine the true dimentions and shape of the ore body and additional gold reserves that might be present at depth in the adjacent area.”

“DGML has recently commenced drilling operations at Uti in the Hutti belt near raichur and in Ramagiri in Andhra Pradesh, which will be completed by mid-May. Later, we will conduct reconnaissance drilling in North Hutti,” Vasudev said.

Till date, Rs 18 crore has been invested in DGML with 85 % of the contribution coming from Rama Mines Mauritius Ltd (RMML). The promoters’ stake will be diluted in the next two years. “At the same time, we are proposing to invest Rs 40 and 50 crore. The funds will come from rights issue or we might float a joint venture company with the help of multinational companies,” said Lakhwara.