Moneycontrol Bureau
Deccan Gold Mines shares surged 18 percent intraday Monday after the company's subsidiary completed 2,000 metres of drilling in four blocks.
"Deccan Exploration Services has so far completed 2,000 metres of drilling in four prospects namely Ganajur Main, Ganajur SE, Karajgi Hut and Ganajur South," the company said in its filing.
Objectives of drilling programme are to find out new resources in satellite prospects apart from exploring further flagship Ganajur Main Gold deposit.
Apart from drilling, it has also completed 400 metres of trenching in satelite prospects. Many of trenches in Ganajur Central, Ganajur SE and Karajgi Hut propects have exposed minerlised BIF bands that indicated encouraging gold values, it said.
In an interview to CNBC-TV18, Sandeep Lakhwara, MD of Deccan Gold Mines said that the company plans to undertake drilling of another 7,000 meters in the next three months. Benefits of this will be visible from Q4 of FY17, he feels.
According to him, drilling will have a positive impact on revenue with quantum of revenue seen higher by 10-20 percent. Recovery, which was previously estimated at 77 percent, is now likely to be at 85 percent, he said, adding that this will add to the revenue.
At 14:20 hours IST, the scrip of Deccan Gold Mines was quoting at Rs 39.60, up Rs 5.95, or 17.68 percent on the BSE.
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