'Deccan Gold Mines an interesting play in the gold mining space'

Multi-parametric exploration techniques such as remote sensing studies, regional and detailed geological mapping, regional and detailed geochemical and geophysical exploration, topographic survey, various methods of drilling and multi-element chemical analysis were adopted in undertaking the exploration work, as per international standards.

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.

Despite having some of the best potential ground for gold mineralisation, India’s annual primary gold mine output has reduced significantly to below 5 tonne. India has suffered in developing its gold mining potential due to lack of adequate exploration expenditure, nationalistic policies of the previous governments and a non-investor friendly mineral policy.

The government is looking to revive mineral exploration and mining sector through foreign and Indian private investment and planned introduction of liberalised internationally compatible mining policies.

DGML with some of the best gold prospects in the country is geologically similar to areas that have been home to major world gold discoveries, playing a leading role in its revival.

It is very difficult to forecast earnings for such type of companies. We do not have a price target for the company. High risk investors can buy into this story which may turn to turn to gold in the future.

Disclaimer: The author is Vice-President Equity Research at Ajcon Global Services. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.