INDIAN BUREAU OF MINES MINERALS DEVELOPMEMT AND REGULATION DIVISION MCDR INSPECTION REPORT regional office

Mine file No : KNT/RCH/G-4/BNG Mine code : 27KAR16004 (i) Name of the Inspecting : P005( ) C.PARAMESHWARAN Officer and ID No. (ii) Designation : Deputy Controller Mines (iii) Accompaning mine : Official with Designation (iv) Date of Inspection : 27/07/2015 (v) Prev.inspection date : 03/09/2014

PART-I : GENERAL INFORMATION 1. (a) Mine Name : HIRABUDDINI (b) Registration NO. : (c) Category : A Fully Mechanised (d) Type of Working : Underground (e) Postal address State : District : Village : HIRA Taluka : MANVI Post office : HIRA Pin Code : FAX No. : 08537-275054 E-mail : [email protected] & hgmlsrmhr Phone : 08537-275034 (f) Police Station : Sirivara (g) First opening date : 01/01/1997 (h) Weekly day of rest : SUN 2. Address for : HUTTI GOLD MINES COMPANY LTD correspondance Village-Hira Buddinni; Post-Heera, Tq-Manvi Dist-RAICHUR, Karnataka -584 129

3. (a) Lease Number : KAR1493 (b) Lease area : 21.58 (c) Period of lease : 20 (d) Date of Expiry : 28/03/2028

4. Mineral worked : GOLD Main PAGE : 2

5. Name and Address of the Lessee : HUTTI GOLD MINES COMPANY LTD At & Po- Hutti Tq-Lingsugur 584 115 RAICHUR KARNATAKA Phone:08537-275025 FAX :08537-275054

Owner : HUTTI GOLD MINES COMPANY LTD Shri A.K.Monnappa, IAS, MD 3rd Floor, KHB Shopping Complex, National Games Village, Koramangala BANGALORE KARNATAKA Phone: 080-25710501, 2 FAX :

Agent : PRAKASH At & Po- HUTTI Tq-Lingsugur RAICHUR KARNATAKA Phone: 08537-275034 FAX : 08537-275054 Geologist Name : PRABHU M,Full Time Qualification : M.Sc. Applied Geology Appointment/ : 05/05/2010 Termination date

Manager Name : APSAR MIYA Qualification : Dipl. in Mining and first class Appointment/ : 01/05/2012 Termination date

6. Date of approval of Mining : Mining Scheme rule 12 MCDR1988 22/02/2013 Plan/Scheme of Mining PAGE : 3

PART - II : OBSERVATION/COMMENTS OF INSPECTING OFFICERS Exploration :

Sl.No. Item Proposals Actual work Remarks

1a Backlog of DURING THE The proposed work is not Not followed as previous year YEAR 2014-15, undertaken in the per the proposals. 200M DD holes proposed years as it was from U/G & reported on the day of 500m from inspection and also surface , the observed through annual location is returns.( However, as 120m towards per the MCDR inspection north of BH data, during the year No. HG-18 13-14, 2323.8m drilling along section has been undertaken on line, angle the surface. But nothing 55 degree and in the year 2014-15. in 2015-16 500m in surface DD holes , location 120m towards north of BH No. HG- 19 along section line, angle 52 degree. ( In u/g, for 2014-15, location=Ms/I IIL/DE/X-cut towards north. PBH-4 & 5 , 100m each. PAGE : 4

1b Exploration over DURING THE It is reported in the As per the lease area for YEAR 2014-15, data sheet submitted for proposals to drill geological axis 1 200M DD holes the inspection of the both in or 2 from U/G & mines, that 2323.8m underground & 500m from drilling undertaken and surface were not surface , the not in underground. carried out. location is 120m towards north of BH No. HG-18 along section line, angle 55 degree and in 2015-16 500m in surface DD holes , location 120m towards north of BH No. HG- 19 along section line, angle 52 degree. ( In u/g, for 2014-15, location=Ms/I IIL/DE/X-cut towards north. PBH-4 & 5 , 100m each. 1c Exploration M/s Hutti M/s DBM, Hutti Agencies and Gold Mines Expenditure in Ltd. lakh rupees during the year 1d Balance area to with the Ore reserve Estimation With the existing be explored to existing main as on 01-04-2015 - development & also bring Geological shaft & west 5,02,191 T @ 4.12 g/t. based on the axis in 1 or 2 shaft, it is future planned to developments, develop the balance area may exploratory be bring to axis 1 mine up to & 2. 8th level in another 5 years. PAGE : 5

1e Balance reserve In the Ore reserve Estimation As per the as on 01/04/20 approved as on 01-04-2015 - approved document document as 5,02,191 T @ 4.12 g/t & after carrying on 1/4/2011. out exploration in 8,06,202 surface during 13- tonnes at 14 , reserves were 4.21g/t. updated as on under 111 1/4/2015. category. 1f General remarks The on lode This exploratory mine Based, on the mine of inspecting exploratory development gave development officers on mine sufficient technical information ore geology, development, information on geometry reserves exploration etc raise and of the ore body to plan estimation were winze carried for the stoping works. carried out. out. Based, on the mining feasibility information, stope preparation were carried out as per the approval of IBM, DGMS & NIRM.

Development :

Sl.No. Item Propasals Actual work Remarks

2a Location of The waste rock The mine is in operation The mine has not development development in the 5th year of the 5 achived the w.r.t.lease area from 6th level years proposals. It is desired and to 10th level reported that the mine targetted from 2011-12 has produced productions. to 2015-16. 24434 Tons of gold ore The drives and from the mine. cross cuts from same level(2014-15 Development 135 Mtrs. Sub- level Development 150 Mtrs. Ore from development - 7125T Stope production - 57999 T Total = 64724 T .

2b Separate benches NA, since this NA, since this u/g mine. NA, since this u/g in topsoil, u/g mine. mine. overburden and minerals (Rule 15) PAGE : 6

2c Stripping ratio Not applicable Not applicable in Not applicable in or ore to OB in underground underground mine. underground mine. ratio mine. 2d Quantity of nil nil nil topsoil generation in m3 2e Quantity of Nil Nil NIl overburden generation in m3

2f General remarks Systematic Systematic underground yes, Systematic of inspecting underground working. underground officers on working. working. development of pit w.r.t. type of deposit etc

Exploitation:

Sl.No. Item Propasals Actual work Remarks

3a Number of pit Not The mine is proposed to Yes, the mine is proposed for applicable. work through underground working through production levels, cross cuts, sub shafts, winzes and levels, shafts and levels and winzes and also through stoping. stopings. 3b Quantity of ROM Development - 24434 T Th above mineral 7125 T ,Stope production achived production - 57599 T , from the drives proposed Total = 64724 and the stopes. T

3c Recovery of All the ROM Yes, all the ROM will be Yes , same is sailable/usable will be used used for processing to followed. mineral from ROM for processing extract the gold ore production to extract the metal. gold ore metal. 3d Quantity of waste rock 3800 tonnes of waste The waste rock mineral reject developement & rock produced, besides, excavated from the generation generation in 25513 tonnes & 23961 mine were used for the form of tonnes of mill tailings road construction, rejects for were stacked in the for other the period surface dumps. miscellaneous 2011-12 to purposes. 2015-16 to the tune of 8830 tonnes. 3e Grade of mineral Not declared NA NA. rejects the mineral generation and threshhold threshold value value. declared. PAGE : 7

3f Quantity of sub Not proposed same as above. No proposals & grade mineral in the even of low grade generation. approved if any will be document. processed and gold metal will be extracted. 3g Grade of sub NA NA NA grade mineral generation 3h Manual / mechanical as above Mechanical means Mechanised method. and at times method adopted manual. for segregating from ROM 3i Any analysis or Not proposed. NA NA beneficiation study proposed and carried out for sub grade mineral and rejects. 3j Provision of Yes proposal yes, the above proposal All the drilling & drilling and in drilling & are being followed in blasting blasting in blasting in the u/g mine activities. activities are mineral benches drives, cross being used in cuts, sub underground level, winze, activities. shafts and in stopes for breaking and extraction mineral and waste and not in benches, since it is a u/g mine. 3k Provision of Not in mineral Yes, different Depends on the mining benches, but underground machineries size and place of machineries in in underground are put to use in u/g the locations, mineral benches workings as workings, like jack machines are described in hammers for drives and deployed other paras. short heights, simmba accordingly. drills for stoping purposes. deep holes drilling machines are deployed wherever required. 3l Whether height The proposal The work is mainly in Yes, different of benches in are drawn for underground and related activities are in overburden and underground activities. progress as per mineral suitable mining & other the u/g related for method of developement work. mining proposed activites. in MP/SOM PAGE : 8

3m Total area The total area No activities are on the Main work is for covered under used for u/g surface for excavations, infrastructures. excavation/pits and surface except some supporting Some on dumping activiities. work and other mill taings, and presently it infrastructures only and other plantations. is 14.50 ha some plantations. area under use. 3n Ore to OB ratio Not declared execept cut off grade of No Ore to OB ratio for the pit/mine for u/g mines 1g/t, no stripping ratio for the mine/ during the year. declared. given in the approved document. 3o Total area put 22.18 ha within the proposed yes within the in use under area. proposed area for different heads the end of the at the end of current proposals. year 3p Production of 2011-12=41757, 2011-12=30529 , 2012- The targetted ROM mineral 2012-13=40676, 13=22273, 2013-14=25870, production has not during the last 2013-14=67456, 2014-15=24434, 2015-16=, achived by the five year period 2014-15=64724, . lessee company. as applicable 2015- 16=186387,

3q General remarks Underground Same method is followed The method is of inspecting mining through in the mine. being followed as officers on open stoping per the proposals. method of mining by sub level etc. blast hole.

Solid Waste Management - Dumping:

Sl.No. Item Propasals Actual work Remarks

4a Separate dumping No proposal Whatever excavated Besides, mill of topsoil, OB for top soil, during the shaft tailings generated and mineral OB, mineral deepening, was used for after the rejects (Rule rejects. plantations & no OB, extraction of 32,33) whatever waste comes out metal from the of mining operations ROM, were sent to were strictly used for the mill tailing any road construction, dump, ear marked some were stacked in the for the purposes. ear marked for the same. No mineral rejects as such. 4b Location of Not proposed. Not proposed. yes not proposed. topsoil, OB and mineral reject dumps PAGE : 9

4c Number of dumps There is no yes, mill tailings are The existing mill within lease waste dump as kept in their respective tailngs are area and outside such, except locations of the surface present within the of lease area mill tailings. plan. ML area & none is found outside the lease. 4d Location of The u/g Yes, as per the approved The u/g workings dumps w.r.t. workings are document regarding the are related to ultimate pit related to the propuction & development the ore body and limit (Rule 16) ore body and plan and sections will the surface the surface be carried out in the structures are structures are respective blocks. protected and protected and planning will be planning will made accordingly. be made accordingly. 4e Number of active No waste dump, No waste dump, only one One active mill and alive dumps. only one active mill tailing dump tailings dump is active mill & one inactive mill present in the ML tailing dump & taings dump is present area. One inactive one inactive in the lease. mill tailings. mill taings dump is present in the lease. 4f Number of dead One mill Yes, one mill tailings Yes only one dead dumps. tailings dead dump is present and mill tailings. dump & no dead. waste dumps. 4g Number of dumps One mill Same is observed during one dump of mill established. tailings dumps the inspections. tailings is has been stabilized. stabilized at present. 4h Whether Yes retaining yes, retaining wal is The lessee company Retaining wall wall is present & taken is taking care of or garland drain present all photographs during the the mill tailings all along dumps along the mill inspections. through proper are there. tailings.. protectins. 4i Length of not indicated But during the Yes, it was Retaining wall in the inspection it was observed during or garland drain proposals. observed garland drain & the inspections. all along dumps the retaining wall constructed for protecting from wash offs. 4j Number of not proposed. but found two in the ML yes it was settling ponds area. observed during the inspections. PAGE : 10

4k Specific Yes proposal Yes the lessee company Protection comments of to maintain has taken effort to measures are taken inspecting the mill maintain the mill to guard against officer on waste tailings in tailings dumps to the wash offs. dump management the common prevent wash offs. mine proposals.

Solid Waste Management - Backfilling:

Sl.No. Item Propasals Actual work Remarks

5a Status of part No proposals Yes, the mine is working Yes, extraction is or full as such it is through shafts, winze, being done in each extraction of underground levels, stoping with stoping, and not mineral from mine. open stoping and partly completed. mined out area supported with the before starting pillars in between. backfilling. 5b Area under Not proposed. No back filling as such Yes, systematic backfilling of in this mine, since the developemnt work mined out area method of working and is in progress. as the proposal for open such no back stoping does not require filling proposals back filling as is made as on date supports. in the approved documents. 5c Concurrent use Not Not applicable. No such activities of topsoil for applicable, exist. restoration or since this is rehabilitation an u/g mine. of mineral out area (Rule 32) 5d Total area Not the mine is u/g method, Execept, some in fully reclaimed applicable. open stoping, with open cast area and and pillar supports and such not in underground rehabilitated reclamation & area. rehabilitations. 5e General remarks Purely U/g method mining, only Yes, the same is of inspecting underground open stoping & partly practiced. officers on mine, hence supported with pillars backfilling and such as planned in the reclamation etc. activities are approved document. not practiced. No poposals.

Progressive Mine Clousre Plan:

Sl.No. Item Propasals Actual work Remarks PAGE : 11

6a Whether Annual No annual Not received and the It was reported report on PMCP report was not party not sent. that the party submitted on received in entrusted the work time and this office. to the NABL and correctly. Rule awaits the 23 E(2). reports. 6b Area available No proposal No rehabilitation In u/g mine, no for made inthe possible in this u/g such work, execept rehabilitation approved mine. supporting the (ha) . document, workings through since it is a pillars. u/g mine. 6c afforestation 4500 with 70% 2014-15= 4500 70% 2014-15 is done (ha). survival in Western Part completed and the the acquired 2015-16= 6000 60% 2015-16 is going area. for Further Western Most to start in the 2015-16 is part ( this will be current year. 6000 nos. of undertaken in the saplings. current year)

6d No. of saplings 6000 for the yet to start. As reported by the planted during curent year. Mine manager that the year the work will be undertaken in the present. 6e Cumulative no 20,000 nos. of 14000 nos of plantation The company is .of plants plantations taking care of the for the five planatations years period proposals. from 2011-12 to 2015-16. 6f Any other method No other No proposals. NA. of proposals. rehabilitation 6g Cost incurred on Not proposed. Not reported. Though the company watch and care is having own during the year common watch & care unit. 6h Compliance on Not proposed. No such reclamation & No voids available reclamation and rehabilitation by back for backfilling. rehabilitation filling. by backfilling (i) Voids available for backfilling ( Lx B x D 6i Compliance on Not proposed. Tailings are used for No proposal as reclamation and common tailings dump such to carry out rehabilitation area. any back filling. by backfilling (ii) Voids filled by waste / tailings PAGE : 12

6j Compliance on Not proposed No proposals made. yes no proposals reclamation and as such. to carry out any rehabilitation work. by backfilling (iii)Afforestati on on backfilled area 6k Compliance on No proposals no any work undertaken. Nothing as such. reclamation and as such rehabilitation by backfilling (iv) Rehabilitation by making water reservoir 6l Compliance on No such no such proposals. nothing. reclamation and proposals. rehabilitation by backfilling (v)any other specific means. 6m Compliance of No proposals. Whatever the land Company is taking rehabilitation available near by the care step by step, of waste land office, residential though no within lease areas are used and proposals as such (i)afforestation developed for making in the approved aesthetic beauty. documents. 6n Compliance of No proposals. As stated above, some of No any such work rehabilitation the areas are being done undertaken. of waste land without any such within lease proposals in the (ii)Area approved documents. rehabilitation (ha) 6o Compliance of No proposals. No work as such. Lessee company rehabilitation does in many of waste land places, which are within lease not depicted in (iii)Method of the approved plan. rehabilitation 6p Compliance of Yes proposal The Environmental The report is yet environmental are made in Monitoring work is being to be submitted by monitoring (core the approved carried out in core zone the lessee zone and buffer document. and buffer zone of the company. zone) mine as per the IBM circulars by NABL certified laboratory, M/s.MSV Analytical Laboratory, Ballari. PAGE : 13

6q General remarks Yes proposed The work is need to be This is an u/g of inspecting in the undertaken in the mine and the PMCP officers on PMCP approved underground mine and not work is possible compliance and document. in surface. The mine is in the later progressive not matured for such period. closure work. operations etc.

Mineral Conservation:

Sl.No. Item Propasals Actual work Remarks

7a ROM Mineral All the ROM Yes, as per the Yes, the dispatch or produced from proposals, the ROM are Hirrabuddinin ore grade-wise the mine is sent to the common is transported to sorting within need to be Beneficiation plant for Hutti Mines for lease area transported to extraction of Gold Beneficiation to the Common metalfrom the ROM. extract the Gold Beneficiation metal for the plant located complete year and aat Hutti. present trend is being continued. 7b Method of grade- No sorting in Directly the ROM is sent The trend of the wise mineral the mine for crushing and follwed ROM is such no sorting i.e. underground, with other process to manual or manual or whatever the extract the Gold metal. mechanical sorting mechanical. ROM from the No any maual or is possible, different mechanical sorting is execept while stopes are under taken as such. doing drive or sent to the cross cuts, that Beneficiation time itself, it plant for will be sent to crushing and the ore bin or for other waste bin. process. 7c Different grade Not proposed. Not proposed, whatever No grade wise, of mineral the ROM produced are mineral sorting is sorted out at sent to the possible in the mines. Beneficiation plant, mine, execept segrgating the ROM & separating the ore waste at the bottom of & waste from the the u/g shaft. drives or cross cuts. All materials excavated from the drives taken as ore or ROM, all the materials excavated from the cross cuts are waste rock. PAGE : 14

7d Any No Common Beneficiation Yes, common beneficiation beneficiation plant available at Hutti Beneficiation process at mines process ML area, belongs to the plant only . available at common lessee company. available for all mines site. the mines of M/s Hutti Gold Mines Ltd. 7e General remarks A proposed in During the above Conservation point of inspecting the approved operation, the ROM & the is taken care by officer on document, waste are brought out to the company to Mineral conservation the Surface through skip avoid any loss of conservation and point is taken hoisting and the Ores ores in the beneficiation care, while are sent to the plant planning part issues making drives, for further process and itself. cross cuts, the waste rock are sent shaft to the waste rock dump deepening, yard or used for some stoping, sub other useful purposes level depends upon the need. excavations.

Environment:

Sl.No. Item Propasals Actual work Remarks

8a Separate removal No proposals. The mine is operating in Presently, the and utilization u/g method, no any such mining operation of topsoil (Rule excvation, execept at concentrated on 32) the initial stage of the the surface only. mine opening. 8b Concurrent use No proposals. yes, no such proposlas. Only in the or storage of initial stage not topsoil at the present stage. 8c Separate dumps Yes proposals Whatever the materials Yes, depends on for overburden, given for OB, that are operating the materials waste rock, waste rock, inside the mine, which hoisted from rejects and fines. are hoisted to the surface are stored fines (Rule 33) surface and kept & used in the designated accordingly. places. 8d Use of Not proposed. If at all any such At times and not overburden, situation arises, which regular, execept waste rock, will be kept in the the ROM. rejects and respective places. fines dumps for restoring the land to its original use PAGE : 15

8e Phased Not as such It is a u/g mine, no No such reclamtion restoration, proposals. such activiities are & rehabilitation reclamation and present in the mine, if proposals in the rehabilitation at all anything comes mine. of lands will be taken care. affected by mining operations (Pits, dumps etc) 8f Baseline No proposals. Afforestation will be The ML area information on done in the area presently workings existence of acquired particularly in reveals very thin plantation and parts shown in the land vegetations, and additional use plan. Earlier the company taking plantation done afforestation has shown care to plant in (Rule 41) about 55 to 70% survival the acquired area rate. It is planned to as indicated plant about 6000 species above. & will be carried out in the phased manner. During the year 2014-15 4500 numbers of saplings were planted. 8g Survival rate Not proposed. 70% Company taking care for maintenance. 8h Water sprinkling Yes proposed. Yes water sprinkling is This system is on roads to being done regularly. being followed control airborne regularly. dust 8i General remarks Not proposed. Taking care to maintain Taking care to of inspecting the aesthetic beauty. maintain the officer on aesthetic beauty, aesthetic beauty still additional in and around effort is mines area required. .

Compliance of Rule 45:

Sl.No. Item Propasals Actual work Remarks PAGE : 16

9a Status of The MR for the MR recived in this Almost 25 days submission of month of July office on 4/9/15, & delayed in sending Monthly and 2015 and the dy.No. 2796 on 8/9/15 the July & the Annual returns AR for the where it is supposed to August,2015 is year 2014-15 be on received 10/8/15. yet to be recived has been The information in this office. received in furnished pertaining to this office. the mine are relevant. The exploration pertaining to the year 2014-15, has not commented, though there was drilling exploratory holes programme. In the AR, the tonnage of ore blocked for stoping is not dealt. PAGE : 17

Details of violations observed during current inspection and compliance position of violation pointed out Violation observed Show couse position Rule NO. Issued on Compliance on Rule NO. Issued on Compliance on

Rule 13(1) 05/10/2015

Rule 45(7) 05/10/2015

Rule 23E(2) 05/10/2015

Rule 29 05/10/2015

Date : (C.PARAMESHWARAN)

Indian Bureau of Mines