Date:09/02/2005 URL: http://www.thehindubusinessline.com/2005/02/09/stories/2005020901650200.htm

Back Deccan Gold identifies new prospects in AP, Karnataka

Our Bureau

Mr Mark Creasy (right), major shareholder of Australian Indian Resources Pty. Ltd, which is the promoter of Deccan Gold Mines Ltd, with Mr Charles Devenish, Chairman, Deccan Gold Mines, and Mr Sandeep Lakhwara, Managing Director, at a press conference in Mumbai on Tuesday. — Shashi Ashiwal

Mumbai , Feb. 8

DECCAN Gold Mines Ltd has identified several targets in its ongoing gold exploration work in Karnataka and Andhra Pradesh.

"The company is currently involved in exploration work in the Dharwar-Shimoga basin and the Hutti belt. Estimated gold resources in the Bhavihal and Mangalgatti gold prospects near Dharwar are in the vicinity of 1,57,000 ounces, in addition to the estimated 60,000 ounces announced earlier at Ganajur," Mr Sandeep Lakhwara, Managing Director, told presspersons.

"Our aim in the Dharwar-Shimoga basin is to get a minimum of 35,000 ounces with an average grade of at least 2.5 g/t before we consider mining operations," Mr Lakhwara said.

"We have also identified several targets in the Hutti region that requires detailed drilling. The demonstrated success rate for recovery of major new goldmine adjacent to major old mines in Western Australia is 83 per cent. The company prospects surround large Hutti gold mine. To date, significant early stage exploration has been encouraging and it is anticipated that the 83-per cent success rate should apply in this region also, he said.

"However, we are awaiting the grant of prospecting licences from the Government to undertake detailed drilling," he added.

Mr Mark Creasy, an Australian gold prospector and major shareholder of Deccan Gold, said the geological similarities between the company's prospect areas and those in Australia, where large discoveries were made, are remarkable. India has a potential to produce 100 tonnes of gold every year.

"Mr Mark Creasy has just completed a field trip in Karnataka and Andhra Pradesh. He will also be visiting prospects in Maharashtra (Nagpur region) and central India (Jharkhand and Chhattisgarh) shortly for acquisition and development of mines. He will further give inputs on exploration strategies and programmes of the company," Mr Charles Devenish, Chairman of the company said.

The company has so far invested about Rs 20-22 crore for exploration work.

It is likely to invest about $5 million in the next four-five years, Mr Lakhwara said. "We are in talks with several fund managers and investors (foreign and NRIs) for raising some funds, ranging from $5 million to $20 million in the next few years. However, we may go for just $5 million until we generate some revenue," Mr Lakhwara said.