Deccan Gold Mines begins Drilling operations in Karnataka

We will be working closely with South West Pinnacle and look forward to reporting the drilling results to shareholders over the next few months, Sandeep Lakhwara said

Deccan Gold Mines announced that Deccan Exploration Services Private Limited (DESPL), its subsidiary plans to commence Core and RC Drilling at Ganajur-Karajgi PL Block located in Haveri District, Mangalagatti PL Block located in Dharwad District in the State of Karnataka by third week of December, 2015.

The proposed drilling program would be carried out by South West Pinnacle Exploration Private Limited, India (South West Pinnacle) with whom DESPL has entered into a Drilling Services Agreement.  South West Pinnacle is a premier exploration company with extensive experience in rendering exploration services involving exploratory drilling and report preparation and offers drilling rig,equipment and accessories along with experienced drilling and support crew.

DESPL has proposed to undertake the drilling program in a phased manner including 5000 - 7000 meters in Phase-I.  DESPL has also proposed to undertake around 5000 meters of RC and Diamond Core Drilling in Mangalagatti PL Block after the execution of the PL.  South West Pinnacle will  be  mobilizing 4-5 drill rigs to Ganajur and Mangalagatti for  undertak ing the proposed drilling program in a time bound manner and the first of the rigs has already reached Ganajur today .

Commenting on the proposed drilling program, 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 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."

Deccan Gold Mines Ltd is currently trading at Rs. 32.65, up by Rs. 2.95 or 9.93% from its previous closing of Rs. 29.7 on the BSE.

The scrip opened at Rs. 30.1 and has touched a high and low of Rs. 32.65 and Rs. 29.55 respectively. So far 225898(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 263.82 crore.

The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 71.38 on 05-Aug-2015 and a 52 week low of Rs. 21.3 on 23-Mar-2015. Last one week high and low of the scrip stood at Rs. 30.35 and Rs. 25.4 respectively.

The promoters holding in the company stood at 29.27 % while Institutions and Non-Institutions held 7 % and 63.73 % respectively.

The stock is currently trading below its 200 DMA.