Deccan Gold Mines : Multibagger 2009

December 31, 2008 1 min read

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Stock : Deccan Gold Mines
BSE Code : 512068
CMP : 18.7
52 Week high : 142.9
52 Week low : 13.4
Target : 100-200%

Time Frame : 8-12 months

Deccan Gold Mines Limited (DGML) is the first private sector gold exploration company in India to be listed on the Mumbai Stock Exchange. Established as a gold exploration company in 2003, DGML now has a large portfolio of exploration prospects in the states of Karnataka, Andhra Pradesh, Kerala and Rajasthan.

It has actively undertaken Reconnaissance exploration work in all of its exploration prospects in the last three years and has been successful in identifying probable gold resources within prospects located at Hirenagnur, Ganajur and Attapadi. It is now awaiting the grant of the next stage of licences to undertake detailed feasibility studies on the mining potential of the gold resources identified through the first phase of its exploration activities. Promoted by shareholders with deep roots in the exploration and mining sector, it brings to India a wealth of international technical know how and experience in the gold exploration and mining sector.

India is a country rich in mineral resources. A major portion of the country is composed of Precambrian rocks which have hosted major gold discoveries worldwide. There were over a hundred gold mining centres in the early part of last century. The mines were located in parts of Kolar, Hutti, Gadag, Chitradurga & Shimoga in Karnataka, Wynad and Nilambur in Kerala, Kotagiri and Dharmapuri in Tamil Nadu, Ramagiri and Jonnagiri in Andhra Pradesh, Sonadehi in Chattisgarh, Parsori and Pular in Maharashtra, Kunderkocha and Sonapet in Jharkand. The mines then produced a large quantum of gold.

Deccan Gold Mines has been promoted by Rama Mines (Mauritius) Ltd which in turn has been promoted by the shareholders of Australian Indian Resources Pty. Ltd (AIR), a company with interests in exploration leading to mining worldwide. AIR, through its subsidiaries and associated companies, has applied for 62 reconnaissance certificates of which 27 RPs have been executed, spread over nine states in India, while applications for 5 Prospective Licences (PL) have been lodged. These RPs have been awarded principally for prospecting gold, nickel and diamonds. AIR is planning to invest Rs 50 crore in the next two-three years in mining operations in India.