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

www.deccangoldmines.com

1

Explored 7000 sq.km area in thestates of Karnataka, AP, Kerala andidentified 40 gold prospects forfurther detailed exploration.

A total of 21 Prospecting Licenceapplications (PL) and 2 Mining Leaseapplications (ML) have beensubmitted. These applications attractpreferential rights and are protectedas per section 10A (2)(b) of theM&M(D&R) act 1957 as amended in2015.

Key projects of the company include,1) Ganajur-Karjagi cluster 2)Magalgatti-Bhavihal cluster 3)Hirenagnur P, Hutti North P(HuttiBelt) and 4) Ramagiri

Drill indicated resources identified inGanajur Main, Ganajur SE, KarajgiMain, Mangalgatti, Bhavihal andHirenagnur projects

DGML’S FOOT PRINT OF GOLD TENEMENTS

2

DGML explored an area of around5000 sq km of the Dharwar-ShimogaGreenstone belt covered under 2 RPblocks. (Hanagal and Dharwar RPs)

Gold mineralization in all the prospectsis hosted within sulphidic bandedferruginous chert.

Successful in identifying 22 goldprospects.

Prospects around Dharwar towardsnorth (Dharwar Cluster) and Haveri inthe south (Ganajur-Karajgi Cluster) areconsidered as significant discoveries.

Seven (7) Prospecting Licence (PL)and two (2) Mining Lease (ML)applications covering all the importantprospects were filed.

DHARWAR SHIMOGA BELT PROJECT

Panaji

Dharwad

BANGALORE

Hyderabad

0 50

kilometers

Dharwad

Kalghatgi

Hanagal

North Hutti

Mangalur

100

Ramagiri

Hutti South

3

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

6 DES.PL-11

Ganajuru

Extension Haveri 8

7 DES ML-2 Ganajuru Haveri 0.29

8 DES.ML-5 Karajgi Haveri 2.8

PL Applications in Dharwar-Shimoga Belt,

Karnataka

1. Positive comments have been received from IBM for all the applications2. 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.

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

10COMPREHENSIVE METALLURGICAL STUDIES OXIDE & SULPHIDE (ALS/AMMTEC)

KGS 587.27

11ARD, PREG-ROBBING INDEX, MULTI ELEMENT, WASTE ROCK GC , KINETIC TEST /ANALYSIS

SAMPLES 373

12 ENVIROMENTAL STUDIES(EIA/EMP) COMPLETED

13MINERAL RESOURCE/ORE RESERVE ESTIMATION FOR GANAJUR MAIN BY SNOWDEN (AS PER JORC)

COMPLETED

14 MINERAL RESOURCE ESTIMATION FOR GANAJUR SE PROSPECT COMPLETED

15 FEASIBILITY STUDIES (for Ganajur Main Gold Project) COMPLETED

16 LAND ACQUISITION , WATER, POWER ETC ADVANCED STAGE

SUMMARY OF EXPLORATION WORK CARRIED OUT IN

GANAJUR-KARAJGI CLUSTER

6

FEASIBILITY STUDIES FOR THE GANAJUR GOLD PROJECT:

DESPL commissioned SRK Mining Services (India) Pvt. Ltd, (SRK) in the year 2011to complete an updated mineral resource estimate and to undertake a ScopingStudy and Preliminary Economic Assessment for the Ganajur Main Gold Deposit.

The study indicated that the Ganajur Main Gold deposit is open pittable. Theproject has been found to be economically viable.

Following the positive scoping studies by SRK, DESPL appointed SnowdenMining Industry Consultants Pty Ltd (Snowden), headquartered in Perth toundertake a Definitive Feasibility Study for the project.

Feasibility study involved a detailed review of the project to take the Ganajur GoldMine into production.

Detailed work involved Resource geology and Ore reserves, Mine planning,Geochemistry, Process and metallurgy, Plant designing and engineering, Tailingsdisposal and design of the tailing dump, Geotechnical engineering, hydrology andhydro-geology, environmental studies etc. Ore reserves under proved andprobable 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 economicallyattractive for commencement of the mine and the processing plant.

The entire feasibility studies were as per International standards that lasted nearly11 months to complete.

7

Classification Deposit Tonnes(Mt)

Au

Measured Oxide 0.58 2.8

Sulphide 1.70 4.0

Total Measured 2.30 3.7

Indicated Oxide 0.13 1.9

Sulphide 0.32 2.1

Total Indicated 0.45 2.1

Measured + Indicated

Total2.70

3.4

Inferred Oxide 0.10 2.3

Sulphide 0.11 2.3

Total Inferred 0.21 2.3

Upgradation of Mineral

Resources to Ore Reserves:

Snowden has estimated 2.14

million tonnes (Mt) @ 3.63

grams per tonne (g/t) gold as

Proved Ore Reserves, and

0.37 Mt @ 1.98 g/t gold as

Probable Ore Reserves for

the Ganajur Main Gold

Deposit, thereby identifying

the maiden mining inventory

on the new Mineral Resource

Estimates of August 2016.

It is to be noted that out of

300,000 ozs of gold

estimated under Measured

and Indicated Resource

categories, 273,000 ozs are

now placed under Proved

and Probable Ore Reserves;

Proved Ore Reserves account

for 85% of the total Ore

Reserves, which is a

significant milestone for

Ganajur Gold Project.

Classification Deposit Tonnes(Mt) Au

(g/t)

Proved Ore Reserve Oxide 0.568 2.76

Sulphide 1.567 3.94

Total Proved Ore Reserve 2.135 3.63

Probable Ore Reserve Oxide 0.122 1.78

Sulphide 0.250 2.08

Total Probable Ore Reserve 0.372 1.98

Total Ore Reserve 2.506 3.38

ORE RESERVES-GANAJUR MAIN GOLD DEPOSIT

MINERAL RESOURCE STATEMENT

8

HIGHLIGHTS OF FEASIBILITY STUDIES-FINANCIALThe financial model demonstrates net cash flows of USD 133 million (M) before tax over thelife of the mine (LOM). The Net Present Value (NPV) at 5% DCF is USD 91.6 M and USD 61.4M 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 2.7years.

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 9,237LOM total material mined kt 11,743

Strip ratio Waste : Ore 3.68LOM 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 % 81.7LOM contained ounces Kilo ounze

(koz)273

LOM recovered ounces koz 221Average annual gold produced koz 27

Plant throughput (average) Mtpa 0.30

LOM Au price USD/oz 1,2509

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

Summary of total Life of Mine costs

Item Unit Value at USD 1,250/oz Au

Net cash flow USD M 133.0

NPV5 USD M 91.6

IRR % 39.1

Item Unit Value at USD 1,250/oz Au

Net cash flow USD M 93.1

NPV5 USD M 61.4

IRR % 29.6

Economic model headline results before

taxationEconomic model headline results after

taxation

10

Item Unit Breakeven

Gold price USD/oz Au 701

Gold grade g/t Au 1.90

Break Even:A break even analysis after taxation was undertaken on the gold price and gold grade forNPV(Table 8). The analysis shows that the Project breaks even at a gold price of USD 701/oz ofgold and gold grade of 1.90 g/t as compared to the average gold grade of 3.4 g/t at GanajurMain Gold deposit.

Item UnitValue at

$1,250/oz Au

Total value of product sold $ M 276.1

Cash cost $/oz 423

Total cost $/oz 829

Production year payback year 2.7Brooke Hunt methodology C1 cost $/oz 356Brooke Hunt methodology C2 cost $/oz 356Brooke Hunt methodology C3 cost $/oz 423

The Project LOM KPIs after taxation are presented

11

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.

GANAJUR GOLD MINE PROJECT – INFRASTRUCTURE

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.

Power for Plant and Mine: DESPL's application for obtaining 5 MWpower from a HT110 kilovolt-amperes(kVa) power line from Basavanakattisubstation (13.24 kms) has been sanctionedby Karnataka Power TransmissionCorporation Limited (KPTCL) under selfexecution scheme in February 2017.

WaterDESPL Proposal to pump 1.08 millioncubic metres of water per year from VaradaRiver has received approval from variousauthorities. It was earlier approved bySHLCC.

Railways:

We have now entered into an agreementwith the South Western Railway forexecution of the project. SW Railway,Mysore accorded permission for layingwater pipe line below the railway line atKM 399/500-600 near Ganajur.

14

GANAJUR GOLD MINE PROJECT – CURRENT STATUS (Cont..)

HUT P 300 meters of strike

length was delineated

which is open along the strike

and depth. HIGH GRADE

GANAJUR SE P600 metres has

been delineated.

35000 OZS OF Au

KARAJGI MAIN P.Resource of 26800 ozs

averaging 3.06 g/t Au under JORC Indicated and

Inferred categories

GANAJUR MAIN P.MEASURED AND

INDICATED RESOURCE 305000

OZS. OPEN PITTABLE.

SIGNFICANT DEPTH POTENTIAL

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 locatingseveral significant gold prospects that include Ganajur Main Gold prospect and the adjacentprospects in the Ganajur-Karajgi cluster. The factual information about the Ganajur Gold Project isfurnished 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 thearea first under RP which was followed up by 2 PL applications. Post amendment of the MMDR act2015, 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 567AML 06/3389. This application was lodged after ascertaining that the ML application has goldreserves as per UNFC guidelines and satisfies Section 5(2)(a) of the Act read with MoM’s detailedGuidelines dt. 24.6.2009.The ML application dt. 8.6.2006 overlapped the said 2 PL applications since the mineralized zone isa 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. On21.4.2011 the State Govt. replied MoM’s queries and forwarded its recommendationDESPL has submitted the Technical Reports of 6 Monthly, Annual and the Final of the RP stageexploration 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 underthe revised New Checklist dated 11-2-2013 as prescribed by the Ministry of Mines. The Checklisthas reconfirmed that the DESPL's ML application satisfied all the provisions of Act, Rules andother guidelines of the Ministry of Mines, Government of India.

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.

Corporate Social Responsibility shown

by DESPL in the project area

CSR ACTIVITY- SWACCHH BHARATH ABHIYAN AT GANAJUR- TRANSFORMATION OF GANAJU R INTO A CLEAN VILLAGE

CHECK DAMS FOR WATER CONSERVATION AND PREVENT SOIL EROSION

Donating utensils for Hanuman

Temple trust

RENOVATION OF THE LOCAL

TEMPLE

DESILTING AND CLEANING OF LOCAL TANK FOR WATER CONSERVATION AND RAINWATER HARVESTING

READING ROOM FALILITIES WHICH IS BEING USED FULLY BY STUDENTS AND

VILLAGERS

Indian Bureau of Mines (IBM) vide letter No N-11011/20/93/CCOM/1999 dated 24-04-2015submitted a detailed and positive report with regard to mineralization and UNFC classification inresponse to the clarification sought by the Ministry of Mines. IBM clarified that out of total 1.47million tonnes of ore reserves (UNFC 121) reported in its letter dated 03-06-2013, 1.25 milliontonnes 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 areaby drilling additional boreholes and the overall ore reserves has increased to 2.552 Million Tonnesunder UNFC 121 (Probable Mineral Reserves) and stated that an optimal and scientific mining plancan be prepared for the Ganajur ML area.

Based on the clarifications submitted by the State Government and the IBM, DESPL’s Mining Leaseapplication 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 fora period of 50 years.

Further, the Ministry of Mines, Government of India vide its Letter No.2/113/2010-M.IV dated07.02.2017 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 grantedon 24.07.2015, the State Government of Karnataka was specifically directed to execute the MiningLease 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 underSection 10A(2)(b) of the MMDR Act after obtaining the necessary clarifications from the StateGovernment and the IBM and there is no need to seek further clarification from the centralgovernment .

Approval of Ganaju ML has followed all the due process of law, Rules and guidelines of theCentral Government. Delay in Grant of Mining Lease has affected development of the Gold Projectunnecessarily .

• 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.

HUTTI-MASKI GREENSTONE BELT PROSPECTS

22

A very important development for the company during this year was the landmarkjudgment delivered by the Hon’ble Supreme court on 08-05-2018 in favour ofDESPL with regard to HuttiMaski Belt projects. With this the following highlyprospective PL applications of DESPL have been restored and these are protectedunder Section 10A(2)(b) of the MMDR Act

Name of the PL application

Area 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 asidethe order of the State Government of Karnataka and directed it to consider the HuttiNorth 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 itspositive comments for all 8 applications.This has opened up huge opportunity for DGML in developing the Hutti Projects

Status of PL applications in Hutti-Maski Belt, Karnataka

PL applications in North Hutti Block

• Hutti North PL Block is located immediatelynorth of the currently operating Hutti GoldMine in Raichur District in Karnataka.

• The Hutti Gold Mines has produced in excess of1.8Moz to a vertical depth of 800m.

• A total of eight parallel gold bearing quartz-sulphide veins are known to exist in the HuttiMines.

• These lodes have been developped and minedupto the ML boundary of HGML towards norththat borders DGML;s PL Block.

• DESPL Explored North Hutti Block by moderrexploration techniquest under RP.

• The exploration efforts resulted in tracing theextensions of 5 of the gold lodes that are beingmined in the Hutti Gold Mines. Notablediscoveries include Main reef (16 g/t Au) andEast Reef analysing upt 10 g/t Au.

• Information across the world with similargeological set up and adjoining an operatingworld class mine suggests possibility of findingbig deposit of gold. Hutti North Prospect has agreat potential for hosting > million ounzes ofgold.

• This will be confirmed after carryiing outdetailed exploration by drilling.

EXTENSION OF HUTTI MINE LODES INTO DESPL’S APPLIED PL AREA- Hutti North PL Block

Hirenagnur Prospect:

• DGML considers Hirenagnurprospect as one of its bestdiscoveries which is located 6.5 kmssoutheast of Hutti Gold Mines.

• Systematic exploration by means ofgeochemistry, ground geophysics,RC drilling and structural mappinghas established a large mineralizedsystem of 2 kms length over awidth of nearly 50 metres.

• Preliminary drilling indicatedpresence of 4 parallel mineralisedzones of which the eastern mostzone, i.e., zone III has a strikelength of 600 metres.

• The data generated also suggeststhe possibility of open pit mining atHirenagnur.

26

HIRENAGNUR-YATKAL PL BLOCK

DISCOVERY SPOT 7.13 G/T

• A preliminary resource of 6.0 tonnes ofAu is estimated averaging 2.72 g/t over10-15 m width. This is just based on verylimited drilling.

• The results of Hirenagnur is lookingexciting and is akin to world classdeposits such as Cleo-Sunrise Damdeposit in Western Australia and minesin Lake Victoria in Tanzania with similargeological set up.

• The overall strike length is more than 1km and the shear zone is very wide.There is a possibility of finding > 1million ounzes of gold just by comparingit with other similar deposits elsewherein the world.

• The test indicated that the Hirenagnurore is mostly free milling with marginalamount of gold in sulphides.

• The study also indicates that by thestandard cyanide leaching process wecan achieve a recovery of 89% Au.Recovery can go upto 94% by furtherroasting. 27

DHN-4

(15m x 1g/t)

DHN-16

11m x 4.52 g/t

DHN-5

(9m x 2.77 g/t,

3m x 2.47 g/t

& 19m x 3.02 g/t)

DHN-6

(16m x 6.38 g/t)

DHN-1

(3m x 2.34g/t,

2m x 1.96 g/t,

& 9m x 1.26 g/t)

DHN-9

(9m x 2.21 g/t)

DHN-14

10m x 2.36 g/t

DHN-10

(2m x 3.72 g/t

12m x 1.5 g/t)

DHN-15

7m x 2.65 g/t

& 5m x 3.02 g/t

DHN-11

(9m x 1.24g/t)

IHN-2

8m x 3.52 g/t

& 2m x 1.73 g/t

IHN-4

5m x 1.3 g/t

& 6m x 2.94 g/t

IHN-6

4m x 1.45 g/t

DHN-3

(26m x 1.76g/t)

IHN-5

8m x 5.02 g/t

HW Sulphidic zone

FW Magnetite Zone

Central

Magnetite

Zone

200 km0

HIRENAGNUR PROSPECT

Hirenagnur Prospect, Cross section of BH DHN-2 & 5

87.0m86

84

80

82

78

74

76

72

70

68

66

62

64

0.62

0.78

0.90.3

9

0.69

0.2710

.540.

74

19m x3.02 g/t2.

31

11.2

2

4.28

0.67

7.16

0.26

2.87

6.22

5.06

0.67

2.29

1.49

5.66

0.75

0.030.1

6

0.19

0.06

0.31

2.92

0.21

0.11

0.42

0.17

11m x 2.17 g/t

3.15

0.87

0.52

0.38

0.69

1.67

0.38

0.24

2.95

1.51

0.56

0.08

0.1

0.06

1.34

0.220.0

6

30.0m

28

26

24

22

18

20

Magnetite

zone

?

Magnetite

zone

60

58

56

54

52

48

50

46

44

42

40

16

14

12

10

8

6

4

2

38

36

32

34

30

0.03

0.05

0.03

0.02

0.03

0.01

0.03

0.01

0.04

0.02

0.03

0.15

0.03

0.02

9m x 2.77 g/t

Sulphidic

zone

0.040.0

2

2.54

0.9

0.3

0.1

0.03

0

0.7

12.8

7

2.51

0.15.

33

DGH-2

2.49

NA

NA

NA

NA

NA

NA

0.28

10

6

8

2

4

28

26

24

20

22

16

18

14

12

NA

NA

NA

NA

NA

DHN-5 50 20

50

60

120

7580

70

70

Mag Anomaly

60 70

440

200

804

0

28

Chinchergi-Wandalli Prospect

29

1. This block is an excellentexploration target defined byDGML as a result of extensivegeochemical exploration, geologicalmapping, ground magnetic surveyand limited Reverse Circulationdrilling.

2. DGML targeted a part of the majorWNW trending Chinchergi-Amareshwara lineament betweenChinchergi Prospect and WandalliProspect. Several ancient workingsare seen all along this block.

3. Chinchergi prospect located some15 km east of Hutti Gold Mine is anarea of extensive ancient mining.

4. The British undertook extensiveU/G mining at Chinchergi.

5. A PL application has been lodgedto cover all the prospective area

Yatkal Prospect is situated alongthe southern margin of the NorthHuttti R.P. Block and gold is foundin the granites intruding the Huttivolcanic belt.Yatkal prospect is situated 10 kmssouth-east of Hutti. Goldmineralization is noticed in quartzveins emplaced along sheared andfractured granite. Mineralisation iscontrolled by NE-SW trendingfracture systems along whichseveral quartz veins are emplaced.

A 900 m long, 150 m wide NE trending soil geochemical in the western part and a NWtrending 400 m long narrow zone in the eastern part is noticed. The western anomalouszone shows sulphide rich granodiorites with 5 parallel zones of quartz veins. Rock chipsampling has revealed anomalous gold content in several samples with best valuesranging from 1 to 32.05 g/t.Preliminary exploration so far suggested a granite hosted gold mineralisation in Yatkalprospect.

YATKAL PROSPECT

30

• 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.

PROSPECTS IN SOUTH HUTTI 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.

SANBAL-MASKI PL BLOCK

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