1 DECEMBER 2014 DEAR SHAREHOLDERS
As india battles the decreasing value of the rupee and a foreign exchange deficit ofmore than $
460 billion it is sitting on an enormous untapped storehouse of riches in the groundin the form of gold silver copper nickel platinum rare earths diamonds and many otherminerals that could add as much as $ 250 billion to the nations gross domesticproduct (gdp) and create 13 to 15 million jobs in rural india by 2025. All of thesecommodities are currently imported.
This drain on foreign exchange reserves due to gold imports could be greatly reduced bytapping the large number of gold resources known to exist through the country but notmuch has been done to speed the process of grant of mineral concessions and fast-trackmine development in the past. The new indian government that assumed office in may 2014has sought to amend the mmdr act 1957 and has placed the proposed amendments for publiccomments on 16 november 2014.
The amendment bill is designed to put in place mechanisms for inter-alia improvedtransparency in the allocation of mineral resources; attracting private investment and thelatest technology; and eliminating delay in administration so as to enable expeditious andoptimum development of the mineral resources of the country. Further the t s rsubramaniam committee constituted about 3 months ago by the union government to review thelaws related to environment and forest protection has recommended some big-ticket changesto the rules and legislation. These include a complete overhaul of certain laws specialfast-track dispensation for power mining and linear projects self-certification ofcompliance by industry and diluting the powers of the national greentribunal.
The mining and mineral exploration industry keenly awaits the legislative andregulatory initiatives from the government to promote private and foreign investment andintroduction of internationally compatible mining policies. The ganajur karajgiprospecting licence (pl) block which hosts the ganajur main gold deposit of deccanexploration services private limited ("despl") which is a 100% subsidiary ofdeccan gold mines limited ("dgml") has continued as the flag ship project.During the first three years of exploration in the pl block substantial progress wasachieved in the ganajur main and its adjoining satellite prospects. Despl considered thatby carrying out further exploration in the pl block there is a strong possibility ofconverting some of these prospects into economic mineable resources in the future. Desplcontinued its exploration for two more years under the deemed extension as per rule 11(2b)of mineral concession rules 1960 to achieve these objectives. The application ofsophisticated geophysical surveys has resulted in new discoveries of some significantgeophysical anomalies pointing to the depth-ward and lengthwise extensions of themineralized gold bearing zones within the pl block. To confirm these possibilities desplhad during the last year drill tested the highly prospective ganajur se and karajgi mainprospect. The drilling has resulted in finding new resources with potential to find moreas the extensions of the mineralised zones open along the strike and depth. This confirmsour belief that the entire pl block is very prospective in terms of gold mineralization.
The new targets require more drilling to define additional resources in the pl blockand thereby significantly increase the life of the project. The geology of the pl block iscomparable to similar gold bearing geological settings elsewhere in the world and westrongly believe that achieving a one million ozs resource is a distinct possibility. Onthe hutti front hutti gold mines limited has filed its statement of objections todespls special leave petition (slp) with the honble supreme court. We areshortly filing our rejoinder to the same in consultation with our legal counsel. In themeanwhile we have also received copies of the slp and other documents filed by ministryof mines new delhi (mom) before the honble supreme court on the same issue.Moms slp is supportive of our stand. Both these slps have been clubbed together forhearing and we are positive that the outcome will restore our rights over the
Hutti belt prospects.
On a personal note i would like to formally acknowledge the support of ourshareholders and staff who have stood with us in this journey. I have ultimate faith inthe future of the company and rest assured that all of us are working towards achievingour common goals.
Charles E.E. devenish
Din : 01252091
Parinee crescenzo c38-c39
G block bandra kurla complex
Mumbai 400 051.
Tel no. : 022-33040797
Fax no. : 022-33040779
Web site: www.deccangoldmines.com
Email. : email@example.com