1

PRE-FEASIBILITY

Of

1000 TPD GOLD ORE PROCESSING PLANTGANAJUR GOLD PROJECT

At

Ganajur Village, Haveri Taluk,Haveri District,Karnataka.

ByDECCAN EXPLORATION SERVICES PVT

LTD

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GANAJUR MAIN PROJECT – GOLD ORE PROCESSING PLANT

1) Executive Summary

Project Gold Ore Processing Plant of 1000 TPDCapacity

Name and address ofthe company Ltd

Deccan Exploration Services Pvt Ltd

Registered Office Deccan Exploration Services PvtLtd;No 5, 19th Main Road4th Sector, HSR Lay OutBangalore-560102(INDIA)Telephone: 08067155700,Fax: +918067155701

Email peshwa@deccangoldmines.cominfo@deccangoldmines.com

Board of Directors .1. Mr K.Karunakaran.2. Mr Saradchandra Rao Peshwa.

Location of the Plant Ganajur Village, Haveri Taluk,Haveri District, Karnataka.

Area 38.45 HaType of Activity Ore Processing Plant.Utilities (PowerRequirement)

4 MW Load

Manpower Requirement Executives : 07Supervisors : 05Workers : 88Total : 100

Project ImplementationSchedule

Proposed to start by 01-12-2017

Total Project Cost(process Plant and theMine)

Rs 265 Crores

Means of Finance 30% Equity, 70% through debt

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2) Introduction of the Project / Background Information

(i) Identification of Project and Project Proponent.

Name of the Project:

Deccan Exploration Services Private Limited (DESPL) is a wholly-ownedsubsidiary of Deccan Gold Mines Limited, (DGML). Deccan Gold MinesLimited – “DGML” is a public limited company listed in Bombay StockExchange (BSE Scrip Code: 512068). DESPL explored an area of 1,542 Sqkm under a Reconnaissance Permit that resulted in locating severalsignificant gold prospects that include Ganajur Main Gold prospect andthe adjacent prospects in the Ganajur-Karajgi cluster. Ganajur-KarajgiBlock is part Ranibennur group of the late Archaean-Dharwar-Shimogagreenstone belt in the western Dharwar Craton. Gold mineralization inthe area is hosted within sulphidic BIF.

DESPL was granted the Prospecting Licence (Ganajur-Karajgi PL Block)over an area of 2.2 sq.kms by the Government of Karnataka videCI.157:MMM.2005 dated 10.9.2009.DESPL that includes the highlypotential Ganajur Main Gold Deposit and its adjoining seven goldprospects. Ganajur Main Gold Deposit is a discovery of DESPL as a resultof systematic and scientific exploration carried out during the RP(Reconnoissance Permit) as well as the PL stages.

DESPL recognized the Mining potential of the Ganajur Main GoldProspect and submitted a Mining Lease application over an area of 29 Hacovering the Ganajur Main Gold Deposit. Ganajur Mining Leaseapplication has been approved by the Ministry Of Mines, Government ofIndia vide letter No 4/113/2010-MIV dated 24th July 2015. The approvalis per Section 10(A) (2) (B) of the New MMDR Act 2015 and Section 5(1).Prior to this the ML application for the Ganajur Project was recommendedby the Government of Karnataka.

Deccan Exploration Services Pvt. Ltd, has also signed an MOU with theGovernment of Karnataka during the Global Investors Meet at Bangaloreon 4th of June 2010 for commencement of a 2000TPD Gold Mine andsetting up of a 2000 TPD processing plant at Ganajur village. Prior to thisKarnataka State High Level Clearance committee (SHLCC) approved theproject on 24-05-2011. The State Government through a G.O approved

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DESPL's request for additional 55 acres of land from 145 acres to 200acres at Ganajur Village in Haveri District, Karnataka for the proposedgold mine and processing plant. The G.O. has also facilitated landacquisition process through Karnataka Industrial Areas DevelopmentBoard (KIADB), for which DESPL has submitted application to the KIADBin March, 2013.

DESPL has proposed to establish a 1000 TPD gold ore processing andbeneficiation plant near Ganajur Village. The gold processing plantwill be located at a distance of 1.5 kms south of the Mine site. Theplant will treat and process the gold ore mined out from theproposed Ganajur Main Gold mine.

DESPL commissioned SRK Mining Services (India) Pvt. Ltd, (SRK) tocomplete an updated mineral resource estimate and to undertake aScoping Study and Preliminary Economic Assessment for the GanajurMain Gold Deposit located in the Ganajur-Karjagi PL Block of HaveriDistrict in the State of Karnataka.

As per this SRK submitted an updated Mineral Resource Statement inaccordance with the Australasian Code for Reporting of ExplorationResults known As JORC Standard. SRK estimated a total of 308,000ounces of gold, out of which 255000 ounces are under indicated categoryequivalent of 121 of UNFC category. The resource has been estimatedupto a depth of 120 metres.

The Scoping study addressed the mine optimization, process design,capital expenditure estimates, operating expenditure estimates, projecteconomics (including key risks and opportunities) and future workprogramme. The study indicated that the Ganajur Main Gold deposit isopen pittable. The project has been found to be economically viable.

(ii) Brief Description of the Nature of the Project.

The gold bearing ore mined out from the proposed Ganajur Main GoldMine located 1.5 kms from the plant will be transported to theproposed processing plant by trucks and conveyor belt.

The gold ore will be treated in processing plant by various stages torecover the final product that is gold.

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The maximum rated capacity of processing plant would be 1000 TPD.

iii Need for the Project and its importance to the country.

Gold Mineralization is site specific and only located along favorablegeological formations and structures.

India imports around 1000 tonnes of gold as against indigenousproduction of less than 5 tonnes. Gold being a scarce commodity,discovering mineable gold deposit has been given top priority by Govt.of India. As a result of the production of gold from the proposed goldproject there will be significant savings in the foreign exchange, inaddition to generating employment opportunities to the local villagers.Moreover, there are many benefits such as local area development,better education, health and sanitation facilities.

iv Demand Supply Gap

India is the largest consumer of gold in the world, consumingaround 26 % of world’s annual production. As against this, thedomestic primary gold production is less than 1 % of its annualrequirement. Virtually 97% of country’s annual demand is importedfrom global markets. This import of a precious commodity (whichdoes not have a productive use for the economy), puts a severe drainon the foreign exchange assets of the country.

Thus any efforts for increasing gold production in the country must beencouraged. Before the independence of the country, there were manysmall and medium scale mines in the country and India boasted ofprimary gold production of around 10 tons annually. However in thepost-independence period, gold mining was nationalized and it wasonly Bharat Gold Mines Ltd. and Hutti Gold Mines Ltd., the two PSUs,which undertook mining operations in the country. These two miningcompanies were not able to operate any small and medium scalemining project. Eventually BGML had to close their operations in2000s due to their increased cost and depleting reserves.

Gold production in India has been fluctuating with a downward trendin last several years as indicated in the table below:

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Gold production chart (India)

Year Gold Production (Kgs)2002 38002003 32002004 37002005 31002006 24002007 30002008 27002009 28002010 27002011 23002012 18002013 15882014 1430

(v) Imports Vs. Indigenous Production

Gold import during 2014-15 was about 900 tonnes costing $34.32billion. The indigenous gold production was only 1.43 tonnes in 2014.

(vi)Export Possibility & Domestic Markets

Since the country, virtually imports its entire gold requirement, anyincrease in production would lead to savings in foreign exchange reservesand could be treated as deemed exports. Thus there is an urgent need totake steps to boost country’s domestic gold production for meeting itsannual demand.

(vii) Employment Generation (Direct and Indirect) Due to Project.

The direct employment potential of the project would be about 100 andan additional 200 people would be indirectly employed through ancillaryindustries.

Direct employment:

The entire unskilled manpower that will be required for the project will befrom the local villages. Initially skilled and highly skilled people will be

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hired from outside and an effort will be made to recognize talented localmen who will be given on job training under able guidance for improvingtheir skill sets. Gradually, the skilled people will be replaced by thistrained local force.

Manpower to be deployed at the Process Plant

S N Manpower Numbers1 Executives 72 Supervisors 53 Workers 88

Total 100

Above table shows that potential of employment generation in the area.

Indirect employment:

Regarding employment and income, the indirect effects are likely to bemuch stronger and widespread due to its multiplier effect. It is expectedthat the project may bring infrastructural development in the study area,which may lead to indirect employment generation.

Indirect employment opportunities may be created in small scale andhousehold industries, which are going to come up as a result of thepresent project implementation. It is expected that around 150-200people will get indirectly employed as a result of the project. Hence, theproject is expected to generate substantial indirect employment in othersectors.

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3. Project Description

(i) Type of Project (including interlinked and interdependentproject, if any)

The proposed 1000 TPD Ganajur Gold Project comprises of Ganajur MainGold Mine and the Ore Processing and Beneficiation Plant. The GanajurMain Gold project is an open-pit mining operation with processing of oreas an integral part of the mines as the ore could not be sold in themarket. The ore mined out from the mines will be sent to processingplant, where the ore will be finely ground to recover gold. The gold inupper surface layers (10-20 meters deep) is oxidized. The deeper layers ofore body contain gold predominantly in sulphide matrix. The oxide orewill be mined first and will be extracted by adopting Gravity separation –Cyanidation – Carbon in Leach – Electrolysis technique. Sulphide ore willbe mined and treated by Gravity separation – Flotation – Roasting –Carbon in Leach – Electrolysis process. The mill tailings shall bedisposed off separately in a designated tailing dump. The tailings shallbe disposed by pumping in slurry form.

(ii) Location (map showing general location, specific location andproject boundary & project site specific layout) with coordinates.

The proposed Processing Plant is located near Ganajur village andbetween 14049’1.01” – 14049’36” N Latitude; 75024’22.5” – 75024’46.17” ELongitudes and is part of survey of India Topo sheet No 48 N/5 in HaveriDistrict of Karnataka. The land details are as follows:

District and State : Haveri District, KarnatakaTaluka : Haveri TalukVillage : GanajurKhasra No./Plot No./ : 78A1,78 A1 A, 79Block Range/Felling Series etc :Thana/ Hobli : KARAJGIKhata No. : 143, 0081D, 388, 389, 69, 327,

9999, 70, 40, 198, 11, 326, 305,124, 306, 307, 443 etc.

Extent of area of the plant (ha) : 95 acres / 38.45 hectares

The proposed Processing Plant area is private patta land.

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Fig – 1 shows the location map of the site.

Key map showing the location of various features around the plant isdepicted in Fig –2

Fig-3 shows the study area of 10 km radius around the plant site.

Salient features of Plant are given below

SALIENT FEATURES OF THE PROJECT SITE

Feature Details w.r.to Plant Site

Altitude 540 m above MSL

Longitude Between 75024’22.5” – 75024’46.17” E

Latitude Between 14049’1.01” – 14045’36” N

Village, Tehsil,District, State

Near Ganajuru Village, Haveri District of Karnataka

Max. Temp. 41.7oC

Min. Temp. 10oC

Relative Humidity 32 - 88%

Annual rainfall 695.6 mmTopography Plain and gently undulatingSoil Type Predominantly clayeyNearest River Varada River – 5.0 km - N

Nearest Highway The National Highway (NH-4) Connecting Bangalore – Puneis at a distance of 3.4 km - SW

Nearest Railwaystation

Karajgi on Southern Railway Line Connecting Hubli –Bangalore - 3.0 km - W

Nearest Industries Balehosur Industries – 3.6 km - SSWNearest Village Ganajuru – 2.0 km – WNWNearest City Hubli – 64 km - NNW

Nearest Air port Hubli – 68 km - NWNearest Forest Karajgi RF – 1.3 km - E

Historical places Pura Siddeshwara Temple- Haveri located at a distance of 4kms from the plant site.

*all distances mentioned in the above table are aerial distances

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(iii) Details of alternate technologies considered and the basis ofselecting the proposed method

Recovering the precious metal gold from the ore sample envisagesgrinding the ore to an optimum level of fineness and subjecting it tosuitable mineral separation processes.Based on the bench scale studies carried out at ALS-AMMTEC laboratory

in Australia, two flow sheets for recovery of gold contained in sulphides

matrix were considered and the recovery routes can be either of the

following:

1. Crushing – grinding – gravity – CIL –Electrolysis (Gold Recovery-77%)

2. Crushing – grinding – flotation – roasting – CIL - Electrolysis (Gold

Recovery- 89%)

Out of the two routes mentioned the one involving Crushing – grinding –

flotation – roasting – CIL route is preferred due to better gold recovery of

89%.

Recent test work done in 2015 by ALS Global Metallurgy, Australia,

indicates that near surface oxide ore is amenable for simpler process

route and higher gold recovery of 89%. The gold contained in the oxide

ore can be recovered through Crushing – grinding- gravity separation –

CIL – Electrolysis process and the final gold recovery is about 89%. The

process route and equipment used for treatment of oxide ore can be

utilised for direct cyanidation of sulphide ore along with some additional

leach vessels required due to longer leaching time (more than 24 hours)

needed for sulphide ore. It is proposed to mine the cost effective near

surface oxide ore, initially and processed.

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LOCATION MAP

INDIA

KARNATAKA

FIG - 1

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TITLE :

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Flotation – Calcination-CIL Route

The ROM sulphide ore is crushed to < 20 mm in three stages of crushing.The fine ore is ground in a wet Ball Mill. The Hydrocyclone classifieroverflow is sent to a thickener for thickening the slurry to 50% pulpdensity and then to a filter for dewatering. The filter cake is roasted in acalciner/roaster. The temperature inside the roaster is maintained at twodifferent levels viz., 550ºC and 700ºC to drive off arsenic as arsenic oxideand sulphur as SO2. The calcined mass is washed and then transferredto CIL tanks for Cyanidation and Carbon loading. After leaching for 48hrs the spent pulp is sent for effluent treatment plant (ETP) and thenpumped to tailing dumps.

The gold loaded carbon from the CIL tanks is taken to elution columnsand stripped of its gold in hot alkaline cyanide solution. The preg-liquoris passed through electrolytic cells for gold deposition on steel woolcathodes. The cathodes are removed periodically and acid treated toremove iron and then smelted in tilting furnace with borax and nitre andsoda ash and poured as bullion bars.This process route recovers 89% gold recovery.

(iv) Size or Magnitude of operation.

Based on gold ore treatment of 1000 tonnes per day (300,000 tonnes peryear) it is estimated that gold production will be 3.0 kg per day.Assuming ore resources of 2.66 million tonnes identified so far it isexpected that total gold production will be 8.5 tonnes.

DESPL has also identified prospects in and around Ganajur Main Golddeposit which will be explored in detail to augment additional resourcesof gold and thereby enhancing the life of the project. The miningoperations are subject to various constraints like behavior of the ore body(i.e. change in grades making a particular section un-minable, change indimensions of the ore body-increasing/decreasing the volume of ore to begenerated), change in seasons, infrastructure factors like availability ofpower etc, and thus it will not be easy to achieve the above mentionedmaximum rated capacity on annual basis. Processing plant of matchingcapacity will be established.

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(v) Project Description with Process details (a schematic diagram/Flow chart showing the project layout, components of theproject etc. should be given.

DESPL commissioned Indian Bureau of Mines (“IBM”) for a gold study inorder to determine whether gold was present in free form in the sample,quantum of free milling gold and to develop suitable method forcommercial processing of the ore.

Petrographic study then revealed free gold grains of 12 to 16 microns insize. The sample contained about eight to 10 percent pyrite and two tothree percent arsenopyrite. Quartz was the main mineral present in thesample which constituted about 40 to 45 percent. Siderite was the nextmajor mineral constituting about 25 to 30 percent. Electron Probe MicroAnalyzer (“EPMA”) studies showed the presence of very fine native goldgrains occurring in pyrite and arsenopyrite. Also very fine grains ofnative gold of two to three microns in size were noticed in silicates.Bottle roll cyanidation tests were carried out on the sample. Directcyanidation of gold ore at 325 mesh size resulted in a recovery of 78percent gold in the solution. Residue after cyanide leaching assayed 1.23gpt of gold. An additional recovery of 3.8 percent gold could be achievedon pre-oxidation of the residue after the removal of free milling gold,followed by cyanidation. Results of the tests indicated that the residueloss was mainly due to the occurrence of gold as fine specs in silicates.Table summarizes the test parameters and the results undertaken byIBM in 2005.

Summary of Metallurgical Test by IBM in 2005.Process conditionsGrind 325 meshSlurry pulp density 50% solids

pH11(employing

lime)Sodium cyanide quantityadded

0.83 kg/tonne ofore

NaCN concentration in theslurry (initial)

0.42%

NaCN consumptionabout 0.5

kg/tonne of oreReaction time 24hoursResults

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Gold recovery 78%Tailing assay 1.23 g/t Au

NaCN consumptionabout 0.5

kg/tonne of ore.

PROCESSING PLANT AND TAILING DUMP

1.02 Metallurgical Testwork by AMMTEC

In 2011, a composite sulphide gold ore sample, prepared from 175 Kg ofquarter cut drill core samples and 20kgs of RC samples, was submittedto ALS Ammtec, Australia to conduct a defined program of metallurgicaltestwork and was focused on various analyses including, grindability,mineralogy, recovery of gold by gravity methods, flotation recovery andcyanidation tests for the recovery of gold. Some salient test data aresummarised below;

1.021 Abrasive Index

A sub-sample of the Sulphide Ore Composite was screened at 12.7 mm,with only the -19+12.7 mm fraction required for the abrasion testwork.The composite sample was tested to determine the abrasion index valueusing the standard procedure developed by F.C. Bond. The BondAbrasion Index (Ai) was determined to be 0.5006

1.022 Ball Mill & Rod Mill Work Index

These tests were carried out in ball and rod mill with closed circuitgrinding and the feed sizes as mentioned in the table below on sulphidegold ore

Particulars of MillParameter

Ball Mill(700 mls)

Rod Mill(1250 mls)

Product in the Feed in (%) 10.9 8.57Bulk Density, (t/m3) of feed material 2.1739 1.9923Ideal Potential Product (g) or Feed duringthe test 434.8 1245.2Speed of the Ball Mill in RPM 5.82 5.20Average Equilibrium Circulating Load (%) 250 100Average Product (g/rev) 1.11 3.651Slurry Density 50% 50%

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Particulars of MillParameter

Ball Mill(700 mls)

Rod Mill(1250 mls)

80 % Passing Feed Size in (μm) 2446 1137880 % Passing Product Size in μm (mesh) 81 (185) 725Reduction ratio 30 16Ball/Rod Mill Work Index (Kw Hrs/DryTonne) 16.9 21.5

Similar tests done in 2015 on oxide ore by ALS Global gave Bond RodMill work index of 19.1 kwh/tonne and Bond Ball mill work index of18.4 kwh/tonne of ore.

1.023 Determination of Head Assays

COMPREHENSIVE HEAD ANALYSIS

SULPHIDE ORECOMPOSITEANALYTE UNIT

Au1 g/t 6.70Au2 g/t 7.29Ag g/t 1.0As ppm 5080Al % 1.72Ba ppm 100Be ppm 0.3Bi ppm < 10

Ctotal % 4.23Corganic % 0.27

Ca % 1.60Cd ppm 5Co ppm 10Cr ppm 40Cu ppm 46Fe % 19.9Hg ppm 0.1K ppm 8000Li ppm < 5Mg % 1.20

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SULPHIDE ORECOMPOSITEANALYTE UNIT

Mn ppm 700Mo ppm < 5Na ppm 1520Ni ppm 360P ppm 800Pb ppm 30

Stotal % 4.94Ssulfide % 3.92

Sb ppm 4.6SiO2 % 48.2Sn ppm < 50Sr ppm 100Te ppm 0.2Th ppm 4Ti ppm 800U ppm 0.4V ppm 6Y ppm 6Zn ppm 68Zr ppm 30

The mineral mass percent in the ore were as in the table below:

Au traces Carbonates 15.98Micas 7.94 Minor Sulphides 0.57

AgNot

detected Magnetite 14.93Chlorite 1.89 Minor phases 0.42Quartz 48.21 Pyrite 7.55Feldspars 1.38 Unknown 0.44

1.26 Gold Recovery and Flow Sheet Development

Based on the bench scale studies carried out at ALS-AMMTEC laboratoryin Australia, the following flow sheet for recovery of gold is proposed.

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Flotation –Calcination- CIL Route

The ore is crushed from Rom to < 20 mm in three stages of crushing. Thefine ore is ground in a wet Ball Mill. The Hydrocyclone classifier overflowis sent to a thickener for thickening the slurry to 50% PD and then to afilter for dewatering. The filter cake is roasted in a calciner/roaster. Thetemperature inside the roaster is maintained at two different levels viz.,550ºC and 700ºC to drive off arsenic as arsenic oxide and sulphur asSO2. The calcined mass is washed and then transferred to CIL tanks forCyanidation and Carbon loading. After leaching for 48 hrs the spent pulpis sent for effluent treatment plant (ETP) and then pumped to tailingdumps.

The gold loaded carbon from the CIL tanks is taken to elution columnsand stripped of its gold in hot alkaline cyanide solution. The preg-liquoris passed through electrolytic cells for gold deposition on steel woolcathodes. The cathodes are removed periodically and acid treated toremove iron and then smelted in tilting furnace with borax and nitre andsoda ash and poured as bullion bars.In summary the broad process would be as follows

• 3stages of crushing ROM to -20 mm• 1 stage milling to grind P80 = 75 microns• Flotation of Entire slurry & Tailing Disposal• Thickening & Filtering of the Flotation Concentrates.• Roasting of Flotation Concentrates and Washing• Cyanidation of Calcines• Carbon stripping-electrolysis-smelting-Bullion

The gold recovery is higher at 89%. Apart from gold the ore alsocontains small amount of silver (Ag) upto 1.0ppm. The silver will berecovered as a by-product depending on the economics of doing so.

Mill Tailings:

Mill tailings to the tune of 0.3 million tonnes will get generated as rejectfrom the process plant every year after extraction of Gold metal.

The tailings shall be disposed off separately in a designated tailing dump.The tailings shall be disposed by pumping in slurry form.

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(vi) Raw Material/ Consumables Required alongwith estimatedquantity, likely source , marketing area of final product, mode oftransport of raw material and finished product .

Since it is a Processing plant, the Gold Ore itself will be the Raw Material.Following consumable will be required in processing operations:

Major Consumables to be usedS N Particulars Quantity

per tonne per annum

1 Sodium Cyanide 1.5 kgs pertonne

450 tonnes

2 Lime 1 kgs pertonne

300 tonnes

3 Hot Caustic cyanidesolution

2 kgs pertonne ofloaded carbon

600 tonnes

4 HNO3 3-5% ofKnelsonconcentrate

3-5% ofKnelsonconcentrate

5 Activated Carbon 100-150grams pertonne of pulp

100-150 gramsper tonne ofpulp

6 Cyanochlor/bleachingpowder

2 kgs pertonne

600 tonnes

7 Steel Wool 6 kgs forevery 3 cyclesof elution

6 kgs for every3 cycles ofelution

The above consumables will be procured from various suppliers spreadacross different locations and will be transported to the site by means ofroad transport only. The final product - gold bullion will be sold in thenearest major town i.e. to local jewelers.

(vii) Resource optimization/ recycling and reuse envisaged in project,if any, should be briefly outlined.

Land : It is expected that the entire plant will be put in a limited space of20 hectares. Tailing dump and other related services will be set upadjacent to the plant in separate areas.

Water: An effort has been made to reuse the mines water for mineralprocessing operations and the plant has been designed in such a

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manner that most of the process water is recycled and reused in theplant.

(viii)Availability of water, its source, Energy/power requirement andsource should be given.

Water :

To operate the process plant and other activities including environmentalmeasures, the requirement of water would be about 3000 KLD. Water willbe catered through a 4.5 km pipe line from ‘Kolur-Kalasur barrage’ builtacross Varda River as well as through bore wells. In the plant, effort hasbeen made to recycle the process water by using thickeners.

Energy / Power Requirement & Source :

The power requirement for the project is estimated to about 4 to 5 MW, tobe serviced by GESCOM.

(ix) Quantity of wastes to be generated (liquid and solid) and schemefor their management / disposal.

Mill Tailings:

Mill tailings to the tune of 0.3 million tonnes per year will get generatedas reject from the process plant, after extraction of Gold metal.

The tailings shall be disposed off separately in a designated tailing dump.The tailings shall be disposed-off by pumping in the form of Slurry.

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4. SITE ANALYSIS

(i) Connectivity

Ganajur village is well connected by rail and road. The nearest RailwayStations are Haveri and Karajgi located 5.3 kms NE of Ganajur and 1.4kms from Ganajur respectively. Haveri falls on National Highway No 4and is about 350.0 kms from Bangalore.

(ii) Land Form, Land use and Land Ownership

(iii)Existing infrastructure

The National Highway (NH-4) Connecting Bangalore – Pune is at adistance of 3.4 km in SW from the plant site.The nearest railway stationis Karajgi which is at 3.0 km NNE from the Plant site.

Nearest railway line connecting Hubli – Bangalore of Southern Railwayline is located at a distance of 1.0 km in W from the Plant site

(iv)Soil Classification:

In the major part of the district red sandy soil is occurring, followed bythe medium black soil and deep black soil. The red loamy soil andlateritic soil are seen in very small parts on southern border of thedistrict.

(v)Climatic data from Secondary Sources

The area enjoys sub tropical climate with temperatures ranging inbetween 180 and 400 C. The rainfall varies from over 903 mm to less than592 mm. October is the wettest month with normal monthly rainfall inexcess of 100mm.

Slno.

Particulars Extentof Area

LandForm

LandOwnership

CurrentLand Use

ProposedLand Use

1 PrivateLand

38.45hectares

PattaLand

Private Agriculture ProcessPlant,WasteDumps,WaterReservoir

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5. Planning Brief:

(i) Planning Concept (type of industries, facilities, transportation etc)town and country Planning / Development authority classification:

(ii) Population Projection:

Since there will not be any major influx of people from outside in thisregion because of the project, there will hardly be any populationexplosion. Most of the workers will be from surrounding villages only.

(iii) Land Use Planning

Tentative Land Use For Ganajur Gold Ore Processing Project

Particulars Area in hectares Total Area in hectaresMineral ore Storage 8.0

38.45

Mineral Separation Plant 7.0ETP 0.7Roads and Infrastructure 2.35

Tailings Dump 8.4Others Specify: Township 1.0Water Reservoir 6.0

Green Belt 5.0

(iv) Assessment of Infrastructure Demand ( Physical & Social) :

There will not be any major influx of people from outside, in this regionbecause of the project, and only local people from surrounding villageswill be employed. Further, since the size of the project is very small, noadverse effect on physical and social infrastructure like roads, electricity,water supplies etc due to project is anticipated.

(v) Amenities / Facilities

The size of the project is very small. The project proponent will provideaccommodation facilities to a very small no. of highly skilled manpowerfrom outside this area, in nearby villages. The site will have ambulancefacility for meeting any eventualities at the project site and nearbyvillages. The site will be provided with mess facility for workers.

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The project proponent realizes the importance of inclusive development ofthe area and have accordingly budgeted an outlay for CSR activities. Theproject proponent intends to work closely with all the stakeholders in thisregion for stimulating and reviving the rural economy in this region.

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6.0 Proposed Infrastructure :

(i)Industrial Area ( Processing Area) :

A gold processing plant will be located about 1.5 kms South of the minesite, 7 kms NE of Haveri town situated on national highway No 4. In thiscase, there will be following types of common infrastructure (support)facility for both the mines and plant:

• Electric Sub Station• Mechanical Workshop• Canteen For Workers• Generator Rooms• Small Stores Room for the spares and tools• Survey Room

(ii)Residential

Since there will be a small no. of highly skilled workers – not belonging tothis area, they will be provided accommodation in nearby area and assuch no residential colony is envisaged in our project planning.

(iii) Green Belt

For the tailing dam areas, around the boundary plantation will becarried out for stabilization. The dump will be properly graded andstabilized with vegetal cover. It is proposed to plant 2000 trees every year.The trees that will grow in the area are Neem, Tamarind etc.,

YEAR NO OF SAPLING SURVIVAL1 2000

80%

11 2000III 2000IV 2000V 2000VI 2000VII 2000VIII 2000IX 3950

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(iv)Social Infrastructure

Ganajur Ore Processing Plant will be a small project. It is expected thatthe project will lead to much needed employment opportunities in thevillages which will contribute to the socio-economic development of thisarea. The company will have an ambulance stationed at site which canalso be used by the villagers in case of any emergency. The company willalso take up work for promoting education, sports and cultural activitiesin the surrounding villages, as a part of its CSR.

(v)Connectivity

Ganajur is well connected by rail and road. The nearest Railway Stations areKarajgi at a distance of 1.4 kms and Haveri, which is 7 kms NE of Ganajur.Haveri falls on National Highway No 4 and is about 350.0 kms fromBangalore.

(vi)Drinking Water Management ( Source and Supply of Water)

Suitable purification and pumping arrangements shall be made forsupply of drinking water.

(vii)Sewerage System

Keeping in view proper hygiene, sewerage system shall be implemented.

(viii)Industrial Waste Management

Mill tailings to the tune of 0.3 million tonnes per year will get generatedas rejects from the process plant, after extraction of Gold metal.

The tailings shall be disposed off separately in a designated tailing dumpof suitable capacity. The tailings shall be disposed by pumping in slurryform.

(ix)Power Requirement & Supply / Source.

The power required will be around 4 to 5 MW and the same will besourced from GESCOM Diesel Generators will be provided as back-uppower supply for essential loads.

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7. Rehabilitation and Resettlement (R & R) Plan

The proposed site is private patta land and devoid of any settlement. Therewill be only land loosers and they will be either employed or will be givenother employment opportunities.8. Project schedule

The project proposed to start by 01-012-2017

9. Analysis of Proposal (Final Recommendations)

Financial And Social Benefits with special emphasis on the benefits tothe local people including tribal population, if any, in the area.

Financial Benefits:

Besides the company, the State government will be benefited by way ofRoyalty, Mineral conservation; the local population will reap the benefits ofemployment, development of the area with modern facilities and generalwell being.

Social Benefits:

Better development of the living areas, better schooling for children, playgrounds, health centres, overall better living conditions & employmentopportunities.