Deccan Gold Mines (DGML) today announced the commencement of drilling in its Ganajur Karajgi block in Karnataka with estimated 308,000 Oz of gold deposits, under its Ganajur gold project.
The Ganajur gold project is a lead project of Deccan Exploration Services Pvt Ltd (DESPL), a wholly-owned subsidiary of DGML.
"DGML is pleased to announce the commencement of diamond core drilling in its Ganajur-Karajgi PL block," the company said in a filing to the BSE.
The purpose of this drilling programme is to find additional resources in Ganajur Main project and upgrade the inferred and indicated category of resources.
The Ganajur-Karajgi PL block comprises the highly rated Ganajur Main gold deposit and several satellite prospects such as Ganajur SE, Karajgi Main, Karajgi East, Ganajur South, Ganajur Central and Karajgi Hut hosting gold materialisation in banded iron formations, it said.
Previous drilling campaigns in the project, exceeding 6,000 metres of drilling have already demonstrated that the block contains 308,000 Oz of gold up to a depth of 120 metres under 'indicated' category, it added.
The present programme of nearly 4,000-5,000 metres of diamond core drilling will cover Ganajur Main, its extension and the surrounding satellite prospect and will include metallurgical and geo-technical drilling.
DGML said it has engaged South West Pinnacle Exploration Pvt Ltd to undertake the exploratory drilling programme.
DGML has already entered into a pact with the Government of Karnataka to establish a gold mine industry in this project area.
Mining lease application in respect of the Ganajur project is under consideration of the Ministry of Mines.
Shares of the company closed at Rs 22.60 apiece, up 0.44 per cent from the previous close on BSE.
