DECCAN GOLD MINES LIMITED
PROJECTS STRATEGICALLY LOCATED WITHIN WORLD CLASS ARCHAEN GOLD PROVINCE. ANNUAL GENERAL MEETING 19TH SEPTEMBER 2019
No 5, 19th Main Road 4th Sector, HSR Lay Out Bangalore – 560 102 Karnataka, India 1 www.deccangoldmines.com DGML’S FOOT PRINT OF GOLD TENEMENTS Explored 7000 sq.km area in the states of Karnataka, AP, Kerala and identified 40 gold prospects for further detailed exploration. A total of 21 Prospecting Licence applications (PL) and 2 Mining Lease applications (ML) have been submitted. These applications attract preferential rights and are protected as per section 10A (2)(b) of the M&M(D&R) act 1957 as amended in 2015. Key projects of the company include, 1) Ganajur-Karjagi cluster 2) Magalgatti-Bhavihal cluster 3) Hirenagnur P, Hutti North P(Hutti Belt) and 4) Ramagiri Drill indicated resources identified in Ganajur Main, Ganajur SE, Karajgi Main, Mangalgatti, Bhavihal and Hirenagnur projects
2 DHARWAR SHIMOGA BELT PROJECT
DGML explored an area of around 5000 sq km of the Dharwar-Shimoga Greenstone belt covered under 2 RP blocks. (Hanagal and Dharwar RPs) Gold mineralization in all the prospects is hosted within sulphidic banded ferruginous chert.
Successful in identifying 22 gold prospects.
Prospects around Dharwar towards north (Dharwar Cluster) and Haveri in the south (Ganajur-Karajgi Cluster) are considered as significant discoveries.
Seven (7) Prospecting Licence (PL) and two (2) Mining Lease (ML) Hyderabad applications covering all the important
Mangalur North Hutti prospects were filed. Dharwad Hutti South
Dharw ad Panaji
Kalghatgi
Hanagal
Ramagiri
BANGALORE 3 0 50 100 kilometers PL Applications in Dharwar-Shimoga Belt, Karnataka
Sl.No PL No Name District Area Sq.kms
1 DES.PL-10 Mangalagatti Dharwar 4 2 DES.PL-6 Kulavalli 2 3 DES.PL-9 Bhavihal Dharwad 1.5 4 DES.PL-12 Lakkikoppa Haveri 5
5 DES-PL-8 Turkara-Sigihalli Belgaum 1.7 Ganajuru 6 DES.PL-11 Extension Haveri 8
7 DES ML-2 Ganajuru Haveri 0.29
8 DES.ML-5 Karajgi Haveri 2.8
1. Positive comments have been received from IBM for all the applications 2. All applications are valid as per Section 10A(2)(b) of the MMDR Act. GNAJUR –KARAJGI CLUSTER PL AND ML APPLICATIONS. SAVED UNDER SECTION 10A(2)(b) OF THE MMDR Act. SUMMARY OF EXPLORATION WORK CARRIED OUT IN GANAJUR-KARAJGI CLUSTER SL NO TYPE OF EXPLORATION UNIT QUANTUM 1 TOPOGRAPHIC SURVEY SQ.KMS 2.2 2 GEOLOGICAL MAPPING (1: 2000 AND 1:5000 SCALE) SQ.KMS 2.2 3 GROUND GEOPHYSICAL MAGNETIC SURVEY LINE KMS 288 4 GROUND GEOPHYSICAL SP-RESISTIVITY SURVEY LINE KMS 24.83 5 GROUND GEOPHYSICAL IP SURVEY LINE KMS 31.25 6 GROUND GEOPHYSICAL EM SURVEY LINE KMS 9 7 TRENCHING/CHANNEL SAMPLING LENGTH (M) 2838.6 8 SAMPLING AND ANALYSIS Nos 7704 9 DRILLING A. RC /DTH DRILLING METRES 6287.00 B. DIAMOND CORE DRILLING METRES 10670.54 16957.54 TOTAL DRILLING COMPREHENSIVE METALLURGICAL STUDIES OXIDE & SULPHIDE 10 KGS 587.27 (ALS/AMMTEC) ARD, PREG-ROBBING INDEX, MULTI ELEMENT, WASTE ROCK GC , 11 SAMPLES 373 KINETIC TEST /ANALYSIS
12 ENVIROMENTAL STUDIES(EIA/EMP) COMPLETED
MINERAL RESOURCE/ORE RESERVE ESTIMATION FOR GANAJUR MAIN BY 13 COMPLETED SNOWDEN (AS PER JORC) 14 MINERAL RESOURCE ESTIMATION FOR GANAJUR SE PROSPECT COMPLETED 15 FEASIBILITY STUDIES (for Ganajur Main Gold Project) COMPLETED 6 16 LAND ACQUISITION , WATER, POWER ETC ADVANCED STAGE FEASIBILITY STUDIES FOR THE GANAJUR GOLD PROJECT:
DESPL commissioned SRK Mining Services (India) Pvt. Ltd, (SRK) in the year 2011 to complete an updated mineral resource estimate and to undertake a Scoping Study and Preliminary Economic Assessment for the Ganajur Main Gold Deposit. The study indicated that the Ganajur Main Gold deposit is open pittable. The project has been found to be economically viable. Following the positive scoping studies by SRK, DESPL appointed Snowden Mining Industry Consultants Pty Ltd (Snowden), headquartered in Perth to undertake a Definitive Feasibility Study for the project. Feasibility study involved a detailed review of the project to take the Ganajur Gold Mine into production. Detailed work involved Resource geology and Ore reserves, Mine planning, Geochemistry, Process and metallurgy, Plant designing and engineering, Tailings disposal and design of the tailing dump, Geotechnical engineering, hydrology and hydro-geology, environmental studies etc. Ore reserves under proved and probable categories were estimated as per JORC 2012 (equivalent of UNFC 111). Several experts, both in country and abroad were involved in completion of the FS as per International Standards. The FS indicated strong NPV that makes the project robust and economically attractive for commencement of the mine and the processing plant. The entire feasibility studies were as per International standards that lasted nearly 11 months to complete. 7 MINERAL RESOURCE STATEMENT Upgradation of Mineral Classification Deposit Tonnes( Au Resources to Ore Reserves: Mt) Measured Oxide 0.58 2.8 Snowden has estimated 2.14 Sulphide 1.70 4.0 Total Measured 2.30 3.7 million tonnes (Mt) @ 3.63 Oxide 0.13 1.9 grams per tonne (g/t) gold as Indicated Sulphide 0.32 2.1 Proved Ore Reserves, and Total Indicated 0.45 2.1 0.37 Mt @ 1.98 g/t gold as Total 3.4 Probable Ore Reserves for Measured + 2.70 the Ganajur Main Gold Indicated Deposit, thereby identifying Inferred Oxide 0.10 2.3 the maiden mining inventory Sulphide 0.11 2.3 on the new Mineral Resource Total Inferred 0.21 2.3 Estimates of August 2016. It is to be noted that out of ORE RESERVES-GANAJUR MAIN GOLD DEPOSIT 300,000 ozs of gold estimated under Measured Tonnes(Mt) Au and Indicated Resource Classification Deposit (g/t) categories, 273,000 ozs are Oxide 0.568 2.76 Proved Ore Reserve now placed under Proved Sulphide 1.567 3.94 and Probable Ore Reserves; Total Proved Ore Reserve 2.135 3.63 Oxide 0.122 1.78 Proved Ore Reserves account Probable Ore Reserve Sulphide 0.250 2.08 for 85% of the total Ore Reserves, which is a Total Probable Ore Reserve 0.372 1.98 significant milestone for Total Ore Reserve 2.506 3.38 Ganajur Gold Project. 8 HIGHLIGHTS OF FEASIBILITY STUDIES-FINANCIAL The financial model demonstrates net cash flows of USD 133 million (M) before tax over the life of the mine (LOM). The Net Present Value (NPV) at 5% DCF is USD 91.6 M and USD 61.4 M before and after tax respectively. The Internal Rate of Return (IRR) is a very healthy 39.1% and 29.6% before and after tax respectively, and the payback period for the Project is 2.7 years. Item Unit Value Pre-production years 1.75 Life of process production years 8.35 Project life years 10.1 LOM ore mined Kilo tones (kt) 2,506 LOM waste mined kt 9,237 LOM total material mined kt 11,743 Strip ratio Waste : Ore 3.68 LOM ore processed kt 2,506 LOM average Au grade % 3.38 LOM average Au recovery sulphide ore % 79.0 LOM average Au recovery oxide ore % 90.0 LOM average gold recovery % 81.7 LOM contained ounces Kilo ounze 273 (koz) LOM recovered ounces koz 221 Average annual gold produced koz 27 Plant throughput (average) Mtpa 0.30 9 LOM Au price USD/oz 1,250 Summary of total Life of Mine costs
Item Unit Value Pre-production capital USD M 46.6 Production sustaining capital USD M 3.1 Total Capital Costs USD M 49.7 Total Mining USD M 21.6 Total Processing USD M 55.8 Onsite Labour USD M 1.2 Total Operating Costs USD M 78.5 Royalties USD M 14.9 Taxation USD M 39.8 TOTAL ALL COSTS USD M 183.0
Value at USD Value at USD Item Unit 1,250/oz Au Item Unit 1,250/oz Au Net cash flow USD M 133.0 Net cash flow USD M 93.1
NPV5 USD M 91.6 NPV5 USD M 61.4 IRR % 39.1 IRR % 29.6
Economic model headline results before Economic model headline results after taxation taxation
10 Break Even: A break even analysis after taxation was undertaken on the gold price and gold grade for NPV(Table 8). The analysis shows that the Project breaks even at a gold price of USD 701/oz of gold and gold grade of 1.90 g/t as compared to the average gold grade of 3.4 g/t at Ganajur Main Gold deposit.
The Project LOM KPIs after taxation are presented
Value at Item Unit $1,250/oz Au Total value of product sold $ M 276.1 Cash cost $/oz 423 Total cost $/oz 829 Production year payback year 2.7 Brooke Hunt methodology C1 cost $/oz 356 Brooke Hunt methodology C2 cost $/oz 356 Brooke Hunt methodology C3 cost $/oz 423 Item Unit Breakeven Gold price USD/oz Au 701 Gold grade g/t Au 1.90
11 GANAJUR GOLD MINE PROJECT – INFRASTRUCTURE
LAND ACQUISITION PROCESS
1. DESPL signed MOU with the Government of Karnataka during the Global Investors Meet at Bangalore on 4.5.2010 for “Commencement of Gold Mine and setting up Value Addition Mineral Processing Plant”.
2. State High Level Clearance committee (SHLCC) also has approved Ganajur Gold project vide Government vide Order No CI 211 SPI 2010, Bangalore, dated 2-6- 2010 , and also in its 27th meeting held on 13.04-12 vide Government vide Order No No CI 146 SPI 2012, Bangalore, dated 28-4-2012.
3. Our application for the allotment and acquisition of additional area of 55 acres (total 255 acres) through KIADB was approved by the SLSWCC vide Order No CI 146 SPI 2012m Dated 09-08-2017.
• DESPL has obtained 90% consent from land owners.
• DESPL’s long term lease agreement with land owners of the proposed gold mine will be an added advantage in the land acquisition process.
• KIADB has processed our application and sent a demand letter for payment of advance towards land acquisition. We have paid the 40% of the advance which amounts to 6.82 crores on 23rd April 2018 for the 200 acres of land. 12 • Signed MOU with the Government of Karnataka during the Global Investors Meet on 4.5.2010 for “Commencement of Gold Mine and setting up Value Addition Mineral Processing Plant”.
• State High Level Clearance committee (SHLCC) also has approved Ganajur Gold project.
• Land acquisition (255 acres) through KIADB was approved by the SLSWCC. DESPL has obtained 90% consent from land owners. DESPL’s long term lease agreement with land owners of the proposed gold mine will be an added advantage in the land acquisition process.
• We have paid the 40% of the advance to KIADB which amounts to 6.82 crores on 23rd April 2018 for the 200 acres of land. GANAJUR GOLD MINE PROJECT – CURRENT STATUS (Cont..)
Power for Plant and Mine: DESPL's application for obtaining 5 MW power from a HT110 kilovolt-amperes (kVa) power line from Basavanakatti substation (13.24 kms) has been sanctioned by Karnataka Power Transmission Corporation Limited (KPTCL) under self execution scheme in February 2017.
Water DESPL Proposal to pump 1.08 million cubic metres of water per year from Varada River has received approval from various authorities. It was earlier approved by SHLCC.
Railways:
We have now entered into an agreement with the South Western Railway for execution of the project. SW Railway, Mysore accorded permission for laying water pipe line below the railway line at KM 399/500-600 near Ganajur.
14 HUT P 300 meters of strike length was delineated which is open along the strike and depth. HIGH GRADE
KARAJGI MAIN P. Resource of 26800 ozs GANAJUR MAIN P. averaging 3.06 g/t MEASURED AND Au under JORC INDICATED Indicated and RESOURCE 305000 Inferred OZS. categories OPEN PITTABLE. SIGNFICANT DEPTH POTENTIAL
GANAJUR SE P600 metres has been delineated. 35000 OZS OF Au
CHARGEABILITY ANOMALY SLICE PLAN AT 24 M DEPTH 15 • Ganajur ML Approval Status
DESPL explored an area of 1,542 Sq km under a Reconnaissance Permit that resulted in locating several significant gold prospects that include Ganajur Main Gold prospect and the adjacent prospects in the Ganajur-Karajgi cluster. The factual information about the Ganajur Gold Project is furnished below: Hanagal RP (1542 sq.kms) was executed by DESPL on 17-1-2003. DESPL has preferential right under Section 11(1) of the MM (D & R) Act by virtue of holding the area first under RP which was followed up by 2 PL applications. Post amendment of the MMDR act 2015, the ML application and 2 PL applications are protected under Section 10A(2)(b) of the Act. The first PL application was dt. 17.10.2003 for 2.3 sq km area. The second PL application was dt. 12.1.2005 for 8 sq km area. The first PL Deed No.3370 was executed on 25.9.2009 for 2.2 sq km area. Thus, the security of tenure was maintained. DESPL lodges an application over an area of 0.29 sq.kms for Ganajur, Dt.8.6.2006 vide ACK. no 567 AML 06/3389. This application was lodged after ascertaining that the ML application has gold reserves as per UNFC guidelines and satisfies Section 5(2)(a) of the Act read with MoM’s detailed Guidelines dt. 24.6.2009. The ML application dt. 8.6.2006 overlapped the said 2 PL applications since the mineralized zone is a single entity. Subsequently, the applicant also carried out prospecting under the granted PL. The ML application was recommended by the State Govt. to the Ministry of Mines on 8.11.2010 i.e. after the applicant carried out prospecting in the main part of the Ganajur Gold Deposit. On 21.4.2011 the State Govt. replied MoM’s queries and forwarded its recommendation DESPL has submitted the Technical Reports of 6 Monthly, Annual and the Final of the RP stage exploration as well as PL stage exploration to DMG & IBM and also GSI. State Government vide its Letter CI 30 MMM 2010 dated 11.06.2014 submitted information under the revised New Checklist dated 11-2-2013 as prescribed by the Ministry of Mines. The Checklist has reconfirmed that the DESPL's ML application satisfied all the provisions of Act, Rules and other guidelines of the Ministry of Mines, Government of India. Corporate Social Responsibility shown by DESPL in the project area
DESPL as a responsible company undertook several CSR activities in and around Ganajur village particularly in improving health, sanitation, cleanliness, waste management, water conservation, green development, employment and culture.
DESPL has also been paying annual crop compensation to the land owners of the ML and Plant area for several years what was very helpful to the farmers during the summer and draught periods. CSR ACTIVITY- SWACCHH BHARATH ABHIYAN AT GANAJUR- TRANSFORMATION OF GANAJU R INTO A CLEAN VILLAGE CHECK DAMS FOR WATER CONSERVATION AND PREVENT Donating utensils for Hanuman SOIL EROSION Temple trust
RENOVATION OF THE LOCAL TEMPLE READING ROOM FALILITIES WHICH IS DESILTING AND CLEANING OF LOCAL TANK FOR WATER CONSERVATION BEING USED FULLY BY STUDENTS AND AND RAINWATER HARVESTING VILLAGERS Indian Bureau of Mines (IBM) vide letter No N-11011/20/93/CCOM/1999 dated 24-04-2015 submitted a detailed and positive report with regard to mineralization and UNFC classification in response to the clarification sought by the Ministry of Mines. IBM clarified that out of total 1.47 million tonnes of ore reserves (UNFC 121) reported in its letter dated 03-06-2013, 1.25 million tonnes is in the granted PL area (44 acres) and rest 0.272 million tonnes is from the applied PL area (28 acres). The IBM also intimated that the DESPL continued it’s prospecting in the granted PL area by drilling additional boreholes and the overall ore reserves has increased to 2.552 Million Tonnes under UNFC 121 (Probable Mineral Reserves) and stated that an optimal and scientific mining plan can be prepared for the Ganajur ML area.
Based on the clarifications submitted by the State Government and the IBM, DESPL’s Mining Lease application covering important Ganajur Gold deposit was approved by the Ministry of Mines, Government of India on 24.7.2015 vide Letter No 4/113/2010-M.IV over an area of 0.29 sq.kms for a period of 50 years. Further, the Ministry of Mines, Government of India vide its Letter No.2/113/2010-M.IV dated 07.02.2017 clarified that its prior approval has been granted under section 10A (2) (b) of the Act. Ministry of Mines observed that since in the case of the DESPL, prior approval was already granted on 24.07.2015, the State Government of Karnataka was specifically directed to execute the Mining Lease in accordance with Law at the earliest.
Opinion of Law Department: The law department of the Karnataka State Government has given its positive opinion regarding the ML application. It has clarified that the Central Government has accorded its approval under Section 10A(2)(b) of the MMDR Act after obtaining the necessary clarifications from the State Government and the IBM and there is no need to seek further clarification from the central government . Approval of Ganaju ML has followed all the due process of law, Rules and guidelines of the Central Government. Delay in Grant of Mining Lease has affected development of the Gold Project unnecessarily . HUTTI-MASKI GREENSTONE BELT PROSPECTS
• Hutti Maski Greenstone belt is one of the most important Archaean gold bearing belts in India. • Remarkably similar to the classic Archaean Superior Craton in Canada, the Yilgarn Craton in Western Australia and the Kolar greenstone belt in India. • DGML carried out exploration over an area 851 sq km in the Hutti Belt under its two Reconnaissance exploration Permits (RPs). • The systematic exploration efforts of DGML geologists resulted in defining 21 gold bearing blocks. A total of 8 prospecting license (PLs) applications have been filed with the Karnataka State Government. These PL applications are valid as per New MM&DR Act 2015. • These were new discoveries with immence geological potential. • The overall geological potential may be prognosticated to around 2 to 5 million ounzes of gold. This however needs to be confirmed by detailed exploration including drilling.
22 Status of PL applications in Hutti-Maski Belt, Karnataka A very important development for the company during this year was the landmark judgment delivered by the Hon’ble Supreme court on 08-05-2018 in favour of DESPL with regard to HuttiMaski Belt projects. With this the following highly prospective PL applications of DESPL have been restored and these are protected under Section 10A(2)(b) of the MMDR Act Name of the PL Area application Sq.kms DISTRICT State • Hutti North 4.9 Raichur Karnataka • Uti 2.9 Raichur Karnataka • Yatkal-Hirenagar 21 Raichur Karnataka • Wandalli 90 Raichur Karnataka • Yelagatti 9 Raichur Karnataka • Palkanmardi 6 Raichur Karnataka • Bullapur 7 Raichur Karnataka • Hirenagar 1.8 Raichur Karnataka
Further the Revision Authority In the final order dated 29th October 2018, set aside the order of the State Government of Karnataka and directed it to consider the Hutti North PL application of DESPL in the light of the judgement of the Apex Court. DMG has started to process all the 8 applications. RO, IBM has forwarded its positive comments for all 8 applications. This has opened up huge opportunity for DGML in developing the Hutti Projects PL applications in North Hutti Block EXTENSION OF HUTTI MINE LODES INTO DESPL’S APPLIED PL AREA- Hutti North PL Block • Hutti North PL Block is located immediately north of the currently operating Hutti Gold Mine in Raichur District in Karnataka. • The Hutti Gold Mines has produced in excess of 1.8Moz to a vertical depth of 800m. • A total of eight parallel gold bearing quartz- sulphide veins are known to exist in the Hutti Mines. • These lodes have been developped and mined upto the ML boundary of HGML towards north that borders DGML;s PL Block. • DESPL Explored North Hutti Block by moderr exploration techniquest under RP. • The exploration efforts resulted in tracing the extensions of 5 of the gold lodes that are being mined in the Hutti Gold Mines. Notable discoveries include Main reef (16 g/t Au) and East Reef analysing upt 10 g/t Au. • Information across the world with similar geological set up and adjoining an operating world class mine suggests possibility of finding big deposit of gold. Hutti North Prospect has a great potential for hosting > million ounzes of gold. • This will be confirmed after carryiing out detailed exploration by drilling. Hirenagnur Prospect:
• DGML considers Hirenagnur prospect as one of its best discoveries which is located 6.5 kms southeast of Hutti Gold Mines.
• Systematic exploration by means of geochemistry, ground geophysics, RC drilling and structural mapping has established a large mineralized system of 2 kms length over a
HIRENAGNUR-YATKAL PL BLOCK width of nearly 50 metres.
• Preliminary drilling indicated presence of 4 parallel mineralised zones of which the eastern most zone, i.e., zone III has a strike length of 600 metres.
• The data generated also suggests the possibility of open pit mining at
Hirenagnur. 26 DISCOVERY SPOT 7.13 G/T HIRENAGNUR PROSPECT
DHN-10 • A preliminary resource of 6.0 tonnes of DHN-11 (2m x 3.72 g/t (9m x 1.24g/t) 12m x 1.5 g/t) Au is estimated averaging 2.72 g/t over
IHN-6 10-15 m width. This is just based on very 4m x 1.45 g/t limited drilling.
• The results of Hirenagnur is looking IHN-4 exciting and is akin to world class 5m x 1.3 g/t Central IHN-5 & 6m x 2.94 g/t Magnetite 8m x 5.02 g/t deposits such as Cleo-Sunrise Dam Zone IHN-2 deposit in Western Australia and mines 8m x 3.52 g/t FW Magnetite Zone in Lake Victoria in Tanzania with similar & 2m x 1.73 g/t DHN-14 geological set up. DHN-15 10m x 2.36 g/t 7m x 2.65 g/t • The overall strike length is more than 1 & 5m x 3.02 g/t DHN-9 km and the shear zone is very wide. DHN-5 (9m x 2.21 g/t) (9m x 2.77 g/t, There is a possibility of finding > 1 3m x 2.47 g/t DHN-16 million ounzes of gold just by comparing & 19m x 3.02 g/t) 11m x 4.52 g/t DHN-6 it with other similar deposits elsewhere (16m x 6.38 g/t) HW Sulphidic zone in the world. • The test indicated that the Hirenagnur DHN-3 (26m x 1.76g/t) ore is mostly free milling with marginal DHN-1 amount of gold in sulphides. (3m x 2.34g/t, • The study also indicates that by the 2m x 1.96 g/t, & 9m x 1.26 g/t) standard cyanide leaching process we 0 200 km DHN-4 can achieve a recovery of 89% Au. (15m x 1g/t) Recovery can go upto 94% by further roasting. 27
Hirenagnur Prospect, Cross section of BH DHN-2 & 5
40 20
DGH-2 70
440 7580 60 50 50
80 200
60 70 70 DHN-5 120 0 NA 0.03
NA 2 2 0.01 Mag Anomaly NA 4 4 0.04
NA 6 6 0.02 NA 8 Magnetite 8 0.03 NA 10 10 zone Sulphidic 0.15 NA 12 12 zone 0.03 NA 14 14 0.06 11m x 2.17 g/t 0.22 NA 16 16 0.87
NA 18 18 0.52
NA 20 20 0.38 5.33 0.28 22 0.69 22 0.1 5.66 9m x 2.77 g/t 24 24 1.67 2.49 26 3.15 26 0.75 28 0.17 28 2.54 30.0m
30 0.9 12.87 0.3 32 0.1 2.51 0.7 34 0.03
36 0.02
38 0.02 0.04 40 0.03 0.05 42 0.03 0.02 44 0.03
46 0.01 ?
48 2.95
50 1.51 0.24
52 0.56 0.08 0.1 54 0.06
56 1.34 0.38 0.19 58 0.06 0.31 Magnetite 60 2.92 0.21 62 zone 0.11 0.42 64 0.16 66 0.03
68 0.67 19m x3.02 g/t 2.31 70 7.16 0.26
72 2.87 11.22 74 6.22
76 4.28 5.06 78 0.78 0.74 80 0.9 0.39
10.54 82 0.69 0.67 0.27 84
86 2.29 87.0m0.62
1.49
28 Chinchergi-Wandalli Prospect
1. This block is an excellent exploration target defined by DGML as a result of extensive geochemical exploration, geological mapping, ground magnetic survey and limited Reverse Circulation drilling.
2. DGML targeted a part of the major WNW trending Chinchergi- Amareshwara lineament between Chinchergi Prospect and Wandalli Prospect. Several ancient workings are seen all along this block.
3. Chinchergi prospect located some 15 km east of Hutti Gold Mine is an area of extensive ancient mining.
4. The British undertook extensive U/G mining at Chinchergi.
5. A PL application has been lodged to cover all the prospective area 29 YATKAL PROSPECT
Yatkal Prospect is situated along the southern margin of the North Huttti R.P. Block and gold is found in the granites intruding the Hutti volcanic belt. Yatkal prospect is situated 10 kms south-east of Hutti. Gold mineralization is noticed in quartz veins emplaced along sheared and fractured granite. Mineralisation is controlled by NE-SW trending fracture systems along which several quartz veins are emplaced.
A 900 m long, 150 m wide NE trending soil geochemical in the western part and a NW trending 400 m long narrow zone in the eastern part is noticed. The western anomalous zone shows sulphide rich granodiorites with 5 parallel zones of quartz veins. Rock chip sampling has revealed anomalous gold content in several samples with best values ranging from 1 to 32.05 g/t.
Preliminary exploration so far suggested a granite hosted gold mineralisation in Yatkal30 prospect. PROSPECTS IN SOUTH HUTTI BLOCK • Buddinni PL block (14.7 sq.kms) comprises of the Buddinni mine prospect and Tuppadhur block.
• The gap area of 2.5 kms between Tuppadhur P and Buddinni P were explored under RP. Stream geochemical sampling revealed significant gold anomalies upto 829 ppb between Tuppadhur and Buddinni.
• Gold mineralization is confined to the central shear zone and is generally found in quartz-ankerite veins with the wall rock showing intense chlorite and carbonate alteration.
• At Buddini, four parallel lodes have been identified. Extensive British time old workings occur along two of them – the Main and Mopla Lodes. Samples from mine dumps assayed up to 19.3 g/t gold. SANBAL-MASKI PL BLOCK
The Maski Goldfields at E and NE of Maski village, witnessed extensive ancient mining activity in the past. The ancient name of the present Maski village was SWARNANAGARI meaning gold town. Thirteen old workings were reported in this prospect in the early 1900s by the Hyderabad Geological Survey. M/S John Taylor and Sons developed one of these workings with an average grade of 30 g/t gold. All these old workings are presently buried under black cotton soil. DGML collected samples old Maski Prospect returned significant gold values such as 0.52, 0.21, 0.56, 1.30, 33.86, 0.3, 2.43, 0.64, 2.37, 3.76, 0.59, 0.68, 11.64, 10.5, 7.01. DGML considers that the Maski area is an excellent target for exploration.
Apart from Maski P, DGML also identified Ashoka and Sanbal prospects. THANK YOU