ENS Economic Bureau, Mumbai, 4 March 2004 :

Deccan Gold Mines would be venturing into gold exploration in Andhra Pradesh and Karnataka. DGML has identified several prospects in these states for gold mining according to Sandeep Lakhwara, director of the company.

“The principal focus of our exploration is to develop gold mines in India. India produces 2-3 tonnes as compared to Australia’s annual production of 280 tonnes, which has similar conditions available in South India,” he said.

Lakhwara added, “the omcpnay has already identified North and South Hutti proespects, the Ramagiri Goldfields, Mangalur RP block, and the Dharwad-Shimoga RP blocks. Other than the Ramagiri Goldfields, which is located in Andhra Pradesh, all of its proespects are located in Karnataka.”

Dharwad-Shimoga RP blocks offer the potential for open pittable mining operations. Our geologists have identified 16 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, he said. “An average grade of between 2-3 grams per tonne would be feasible to mine in an open pit operation wheras grades of above 6 grams per tonne would generally be required for underground mining operations,” he added.

The company plans to invest Rs 4.9 crore in the project of which 3.48 crore will be spent on exploration programmes at the four prospects. The entire work is expected to be completed by December 2004.