Shares of Deccan Gold Mines Ltd are expected to react positively as the company announced significant progress towards commencing commercial production at its Altyn Tor Gold Project in Kyrgyzstan. The company anticipates beginning commercial production from the gravity circuit by mid- to late-October.
Altyn Tor Gold Project Update:
- Conveyors: 11 units have been commissioned. The new ball mill feed and tailing feed conveyors are in transit to the site.
- Crushing: Jaw and cone crushers have completed successful trial runs, and bunker conveyor replacement is underway.
- Ball Mill Installation: Ongoing, with a target completion date in late August to early September 2025. A shed to cover the facility is expected to be erected a month after the ball mill installation.
- Gravity Concentrator: Early gold recovery equipment is on-site, with commercial production targeted for mid- to late-October.
- Leaching System: All tanks have been fabricated and painted, and agitators are being transported to the site. Full erection of the tanks is expected by mid- to late-October.
- Thickeners and Filter Press: Civil works on the foundation are in progress and expected to be completed by mid-September, coinciding with equipment arrivals.
- Elution and Smelting Equipment: Expected on-site by mid-September, with erection targeted for mid-November 2025.
- Laboratory and Reagent Storage: New facilities are expected for delivery by late-September.
Electrical and High-Tension Powerline:
- A 2500 kVA diesel generator set with transformer and 10 kV panels has been ordered, with delivery expected in October 2025. This generator will power the ball mill during commissioning.
- The contract to install high-tension lines has been awarded to a local contractor, with completion targeted for late-November to early-December.
- Substation equipment procurement is underway, and cable racks fabrication is in progress.
Tailings Storage Facility (TSF):
- Excavation of the new tailings dam has commenced and is scheduled to be completed by October 2025.
- Geomembrane lining is planned for November and December, subject to weather conditions.
Mining:
- Waste stripping to expose ore for plant commissioning is in progress.
- Approximately 30,000 m³ of waste has been removed, with a target of 100,000 m³ in the next 2 to 3 months.
Resource Development:
- Approximately 2000m of the 2500m planned drilling program to test extensions of mineralisation zones has been completed.
- Logging of drill holes has identified multiple zones of mineralisation, including visible gold. Assay results are pending.
Outlook and Contingency Plans:
The company is taking measures to mitigate potential impacts from early winter, which could affect timelines. Key priorities include:
- Monitoring shipments and ensuring civil works align with equipment deliveries.
- Erecting sheds to protect critical equipment.
- Commencing Dore bar production from the gravity circuit in October.
- Completing the high-tension power line and substation works in November.
Deccan Gold Managing Director, Dr. Hanuma Prasad Modali, stated that the company is cautiously optimistic about meeting its timelines for the project. Contingency plans are in place to address potential weather-related impacts, including covering the process plant in sheds to enable year-round commissioning and operations. Dr. Modali also noted that drilling results are confirming expectations of a larger Altyn Tor orebody, with plans to update the resource model and present an increase to State Reserves to the Kyrgyzstan Government.
The Altyn Tor deposit is located within the Soltan Sary gold mineralization zone and is part of the Tien Shen Shear Zone. The project's mineral resources are currently estimated at 4.65 Mt grading 1.21 g/t Au for 180 koz, including tailings and low-grade stockpile material.
Deccan Gold Mines Ltd is the first and only gold and critical mineral resource company listed on the Bombay Stock Exchange Limited (BSE).
Deccan Gold's vision is to be India's leading gold and critical minerals producer, transforming natural resources into shared prosperity.
For further information, refer www.deccangoldmines.com.
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