Feb 22, 2007, 7:59 GMT
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.
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