India's first large private gold mine to begin full-scale production by end of next year: DGML MD

The full-scale production of the country's first large private gold mine in Andhra Pradesh will begin by the end of next year, said Deccan Gold Mines Ltd Managing Director Hanuma Prasad.

The Jonnagiri gold project, in which the pilot scale operation has already started, will produce about 750 kilogrammes of gold per annum once it begins its full-scale production, Prasad told PTI in an interview.

Deccan Gold Mines Ltd (DGML), the first and only gold exploration company listed on BSE, has a significant stake of 40 per cent in Geomysore Services India Limited which is developing the first private sector gold mine at Jonnagiri.

The mine, in which a total investment of about Rs 200 crore has been made so far, is producing about one kg of gold per month at present.

"In the Indian mine (Jonnagiri project) the construction is going on. By next year, around October-November, that will come into production," Prasad said.

The gold mine is located near Jonnagiri, Erragudi and Pagadirayi villages within the Tuggali Mandalam in the Kurnool district of Andhra Pradesh.

"The mine was granted...in 2013. It took about about 8-10 years to complete exploration (of the project)," Prasad explained.

The managing director further said that production from its another gold mining project in Kyrgyzstan, in which DGML has 60 per cent stake, is likely to begin in either October or November of 2024.

"The Altyn Tor Gold project will be producing around 400 kg gold per annum," he added.

DGML was established in 2003 by promoters with deep roots in the exploration and mining sector. DGML for a long period of time has been involved in gold exploration activities in India and overseas. DGML's exploration in India, particularly in Karnataka led to discovery of open pittable gold deposits in the Archaean greenstone belts of Dharwar Craton. These deposits are in Hutti and Dharwar – Shimoga belts.

Since 2021, as part of expansion and diversification, DGML has initiated merger and acquisition activities.