Deccan Gold Mines (DGML) zoomed 7.65% to Rs 111.20 after the company announced that its subsidiary Deccan Gold Tanzania has discovered a gold block in the Nzega-Tabora Greenstone belt, Tanzania.
Deccan Gold Tanzania (DGTPL) is also awaiting the allotment of a prospecting licence for Lithium. DGTPL application for the lithium block has been recommended for grant.
Deccan Gold Mines said that a preliminary field expedition was carried out across the 4 granted PL Blocks during the January & February 2024 to understand the terrain and geology. Geochemical sampling and structural data have been collected and processed. A total of 116 geochemical samples were collected and analysed at SGS, Tanzania.
The company further stated that more structural investigations including ground geophysical surveys will be carried out in the future exploration program to understand the control of structures with respect to gold mineralization in these 2 PL blocks.
DGML, as a part of its strategy to diversify into critical minerals, has carried significant amount of desktop studies on potential areas in Tanzania.
Based on these studies the company has identified a potential area of 100.49 square kilometers, on which it has applied for prospecting license (PL). The PL has already been recommended and grant order is awaited.
This PL is surrounded by lithium PL Blocks held by other companies. One of the PL Blocks which is located southwest of the companys applied PL Block where the PL Holder is carrying out exploratory drilling for Lithium and there are chances of the pegmatite vein from that PL Block extending to the companys PL Block.
Moreover, multiple pegmatite veins have been observed in DGMLs PL block and these pegmatite veins might represent good potential for lithium.
"Further detailed field expedition is planned in the coming months, the company said in a statement.
Deccan Gold Mines (DGML) is involved in gold exploration activities in India and overseas.
The company had reported a consolidated net loss of Rs 4.41 crore in the quarter ended September 2023 as against net loss of Rs 0.64 crore during the previous quarter ended September 2022. Sales reported to Rs 0.03 crore in Q2 FY24. There were no Sales reported during Q3 FY23.
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