New Delhi - An Australian exploration company has struck
gold in a remote village in India's Rajasthan state, news reports
said Thursday.
'Significant gold deposits have been discovered in the Jagpura
mines in Banswara district of south Rajasthan,' The Times of India
newspaper quoted an official of the Brisbane-based Indo-Gold Limited
as saying.
Indo-Gold formed a joint venture with a private Indian firm Metal
Mining India in October 2004 for exploration in Rajasthan. The
Australian firm holds 70 per cent stake in the venture named
Indo-Gold Mines while its Indian partner has 30 per cent.
'The deposits are world-class and we hope to start production in
four years,' Indo-Gold managing director Mike Higgins said. He
estimated the annual yield from the Jagpura mines would be around
eight tonnes.
Surendra Chaku, managing director of Metal Mining India was quoted
as saying that the Jagpura mines had immense potential. 'In four
years, the mines will be coughing gold,' he said.
Three global consultants, who confirmed the discovery of 38.5
million tonnes of gold at Jagpura, however, said the deposits were
low grade and would need state-of-the-art processing technology to
meet global standards.
India's federal government had allocated 2,135 square kilometres
of land to the company under a reconnaissance permit. Mining aimed at
production, however, may require fresh permits, an official of
Indo-Gold said.
Higgins said the Jagpura discovery was likely to boost foreign
investment in exploration and mining in India. 'The exploration
industry is a high-risk industry. The investing companies have to
make substantial investments before they can expect any returns,' he
said.
India is one of the world's largest importers of gold and buys
close to 470 tonnes a year, according to official figures.
Its main gold reserves in southern Karnataka state have dwindled
over the years, currently yielding only about two tonnes of gold
annually, the report said.
© 2007 dpa - Deutsche Presse-Agentur 
USA
Your Talkback on this Story