Deccan Gold Mines To Commence Drilling At Ganajur

Deccan Gold Mines Limited(DGML)has announced that its subsidiary ‘Deccan Exploration Services Private Limited(DESPL)’ plans to commence core and reverse circulation drilling at Ganajur-Karajgi PL Block located in Haveri District and Mangalagatti PL block located in Dharwad District in Karnataka by the third week of December.

The proposed drilling programme is set to be carried out by South West Pinnacle Exploration Private Limited (South West Pinnacle) with whom DESPL has entered into a drilling services agreement. DESPL has proposed to undertake the drilling program in a phased manner including 5000 to 7000 meters in Phase-I.

The company has also proposed to undertake around 5000 meters of reverse circulation and diamond core drilling in Mangalagatti PL block after the execution of the PL. South West Pinnacle will be mobilizing four to five drill rigs to Ganajur and Mangalagatti, to undertake the proposed drilling program in a time bound manner. The first of the rigs reached Ganajaur on Wednesday.

Commenting on the proposed drilling programme Sandeep Lakhwara, Managing Director of DGML said, “This is a very important step for DESPL in its transformation from an exploration company to becoming ultimately one of the first new gold producing companies in India. We will be working closely with South West Pinnacle and I look forward to reporting the drilling results to shareholders over the next few months.”

“The main focus of this drilling program would be to increase the overall gold resource in Ganajur Main Gold deposit which at present has been estimated as 308,000 ozs of gold. Apart from this, DESPL also plans to drill the adjoining satellite prospects which look very promising in terms of gold mineralization. The drilling program at Mangalagatti will commence once we receive the approval of the state government of Karnataka for execution of the PL and we look forward to receiving the approval in the near future,” he added.