Indian Bureau of Mines (IBM) has upgraded Deccan Gold Mines Ltd’s Ganajur gold project from resource to an ‘economic probable mineral reserve’ category.
Deccan Gold Mines, in a release to the exchanges said, IBM has advised the Ministry of Mines (MoM) that the earlier classification under UNFC 331 category may be re-classified to UNFC 121 category. As a result, IBM has stated that the reports submitted by the company have established the economic viability of mining the Ganajur gold deposit.
The mining lease (ML) application of Deccan Exploration Services Private Ltd (DESPL), a wholly owned subsidiary of Deccan Gold Mines Ltd over the Ganajur gold project, is currently awaiting approval of the Ministry of Mines after its recommendation by the Karnataka Government. Early this year, the company said DESPL had discovered additional gold resources at its main Ganajur project. Traces of additional gold resources were found at Karajgi Main prospect, Ganajur Main deposit and at Ganajur South-East prospect.
All the mining areas are in and around Ganajur-Karajgi villages of Haveri district in the North-West part of Karnataka.
To facilitate mining, the Karnataka Government through its State High Level Clearance Committee (SHLCC), had approved DESPL’s application for enhancement in land allotment from 145 acres to 200 acres at Ganajur village, Haveri district, for the proposed gold mine and processing plant.
The land acquisition is being facilitated through Karnataka Industrial Areas Development Board (KIADB).
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