CAN DECCAN GOLD BECOME A

MAJOR GOLD PRODUCER?

Rodger Allen Gold Mine

 The growth of gold mining industry in Australia

Understanding of Australias
prospectivity

Technological developments

Government of Australias
investor friendly policies

Quantum of exploration
expenditure

Access to capital from the

public via listings of exploration
and mining companies on the
Stock Exchange
 The growth of gold mining industry
in Australia
Government of Australias investor friendly policies
Mineral and Petroleum Resources Policy statement of 1998 - a commitment to
provide investors with positive, stable framework of relevant Government
policies which to a large extent remove uncertainty and promote increased
investment.
Tenement system and legal framework is investment friendly; has therefore
attracted large foreign investment
- Grants for reconnaissance exploration and prospecting are made within
a short duration of 2 to 6 months as against 12-24 months of delay in
India. Consider a time limit for disposal of applications failing which
deemed approval process applies.
- There are no lengthy procedures of clearances from various
organisations such as revenue authorities and the like at exploration &
prospecting stages. Consider removing certain stages at the state
Government level.
- Government guarantees award of prospecting & mining rights to those
who invest in grass roots exploration. In India, the law speaks of only
preferences but no guarantees. Security of tenure is a must have
when upgrading the prospect from RP to PL or PL to ML to attract large
investments.
-
 Quantum of exploration
expenditure
In the recent past smaller
exploration companies in Australia
have raised between US $ 150-200
million for exploration purposes
every year. Canada has provided a
substantially higher amount of US
$ 3.3 billion in the same period
inclusive of capital expenditure on
mining.
In India, estimates suggest that
A study of Western Australia the total amount
Department spent on
of Treasury and
precious metals exploration
Finance indicates that if mineral exploration investment wereover
to increase by US $100m andthe be past 20 years
maintained forhas averaged a
5 years,
projected cumulative benefitslow USnext
over $ 35m
20 per annum
years for the State
would be $10.4 billion in investment, $45.8 billion in export
revenue, $32 billion in gross state product and $1.7 billion in
State Government revenue. All these, in addition to creation of
several thousand new jobs and development of ancillary
 Gold potential of the Indian
terrain
DELHI
Gold was known to
Indians 8000 years ago. Lucknow
Guwahati

Ancient India witnessed

Bhopal Ranchi
extensive prospecting & Sidhi
Ahmedabad
Culcutta

mining for gold. There Nagpur

Raipur

are more than 800 old Mumbai

KIMBERLY
INDIA BLOCK

workings recorded. Hyderabad CANNING

BASIN
Hutti PILBARA
Geologically, the Indian Goa DHARWAR
CRATON
CRATON

terrain is largely Kolar WESTERNAUSTRALIA

comprised of precambrian Bangalore
Meekathara

rocks. Similar rocks are Trivendrum

known to contain large
Kalgoorlie
quantities of gold in parts YILGARN
CRATON
Perth
of Western Australia,
Canada, Africa, South
America & China
There were over a hundred gold mining centres in the early part of
the last century & these were mostly operated by the Britishers.
The mines were located in parts of Kolar, Hutti, Gadag,
Chitradurga & Shimoga in Karnataka; Wynad & Nilambur in Kerala;
Kotagiri & Dharmapuri in Tamil Nadu, Ramagiri & Jonnagiri in AP
State; Kunderkocha, Lawa, Mayisara & Sonapet in Jharkand;
Sonadehi in Chhattisgarh; Parsori & Pular in Maharashtra. Gold
panning by local people is a prominent activity in many parts of
India.
From a total of 127,242 tons of gold metal produced in the world,
76,500 tons came from precambrian terrains (Archaen &
proterzoic). A major portion of India, barring the Indogangetic
alluvial tract & Deccan lavas, is composed of precambrian rocks
yet our contribution to the precambrian gold resource is a meagre
1.17% (900 tons of which has come from a single precambrian belt
ie Kolar)
Gold-bearing potentiality of a geological terrain can be expressed in
terms of kilograms of gold per sqkm area comprising gold metal
already produced + gold reserve in the ground identified by
exploration & available for mining in the future. For Western
 How Deccan Gold can become a major Gold
Producer?

Factors favouring Deccan Gold

Geological terrain with potential to deliver Mines (Ganajur,
Hirenaganur and others)
Excellent results from exploration
Depth of technical expertise available to the Company both Indian
and International
Strategic investment by Sun Mining & Exploration Ltd into Deccan
Gold - provides funding, access to gold prospects internationally ,
additional expertise
Capacity and commitment to accelerate our spend rate on
exploration
Several Prospecting Licence applications lodged with the
Government awaiting approval
 How Deccan Gold can become a major Gold
Producer?

How the government can help us

Create mining Industry regulations and offer tax incentives
that foster favourable investment into exploration
companies

Fast track the conversion of RPs into PLs, grant of larger

areas under PLs, matters relating to forest clearances,
deletion of some of the time consuming unnecessary steps
for grant of PLs, upgrading of the guidelines and rules to
remove anomalies and security of tenure are some of the
key issues that need addressing.

Encourage more research and development through grants, 150%

write offs
 How Deccan Gold can become a
major gold producer?

There have been several representations made to the Government

by various organisations including FIMI on what improvements
are required to the Mining regulations and the Act. The
Government should act on these suggestions.
I believe training of appropriate government personnel in the
understanding and execution of the Mining regulations is a must
Government agencies (GSI & MECL) become more actively involved
with the private explorers to exchange information that could
lead to discoveries.

THANK YOU.