Jonnagiri Gold Project Enters Pre-Commercial Trial Phase; Targets 900 Kgs Annual Refined Gold Production by FY 2028

Deccan Gold Mines Limited has announced the commencement of Pre-Commercial Operations Date (PCOD) at the Jonnagiri Process Plant in Andhra Pradesh. 

With the initiation of PCOD, the Jonnagiri Gold Project has officially moved from the development stage to the pre-commercial trial production phase. The operations are managed by Geomysore Services (India) Private Limited (“Geomysore”), an associate company of Deccan Gold Mines Limited. According to the company, processing plant trials have started, and ore production is currently in progress.

Deccan Gold Mines Limited holds a 27 per cent equity stake in Geomysore. The majority ownership in Geomysore lies with Lloyds Enterprises and Thriveni Group, which together control the operational and management functions of the project.

The company expects the next key milestone — full-scale commercial production — to commence by November 2025. Management projections indicate that by FY 2028, the Jonnagiri Gold Project could achieve an annual refined gold production capacity of up to 900 kilograms.

Dr. Hanuma Prasad Modali, Managing Director of Deccan Gold Mines Limited, described the start of PCOD as a significant achievement for the company and the Indian mining sector. He stated that the milestone “lays the foundation stone for the revival of the gold mining industry in India.” Dr. Modali also emphasized that the development could attract new investments and discoveries in the sector, fostering much-needed growth and capital infusion. He acknowledged the collective effort of all stakeholders, commending their “vision, commitment, and perseverance” in bringing the project to this stage.

Deccan Gold Mines Limited is the first and only gold exploration company listed on the Bombay Stock Exchange Limited (BSE). It was established in the year 2003 by Australian promoters with deep roots in the mining and exploration sector. Since its inception, DGML and its wholly owned subsidiary Deccan Exploration Services Private Limited (DESPL) actively pursued gold exploration activities through the adoption of modern methods and the latest technology in all of its exploration prospects. Since the change in management in October 2021 the Company has made significant efforts to expand its portfolio in India and overseas.

The company has a market cap of over Rs 2,200 crore. The stock is up by 67.6 per cent from its 52-week low of Rs 85.3 per share and down 16.1 per cent from its 52-week high of Rs 170 per share.

Disclaimer: The article is for informational purposes only and not investment advice.