Deccan Gold Mines shares rally 13% after maiden gold doré production at Altyn Tor Project

Shares of Deccan Gold Mines rallied over 13% to Rs 226.30 apiece on the BSE on Thursday after the company announced the successful production of its first gold doré at the Altyn Tor Gold Project in Kyrgyzstan, boosting the project’s commercial prospects, according to a regulatory filing with the BSE.

The production of the company’s first gold doré at the project marks a critical de-risking step for the Altyn Tor processing flowsheet, validating the operational viability of the upgraded processing circuit and providing a strong foundation as the company progresses towards full-scale commercial production.

The first gold doré was produced following the successful processing of a batch of gravity circuit concentrate through the project’s newly installed Intensive Leach System (ILS) as part of a proof-of-concept run. Gold was recovered from the pregnant leach solution using the Merrill-Crowe process before being smelted into gold doré.

The Altyn Tor Project

Altyn Tor is located in the Naryn region of central Kyrgyzstan. The deposit forms part of the highly mineralised Soltan Sary mineralisation zone, which extends over 300 km and is part of the major Tien Shan Shear Zone, which hosts numerous world-class gold deposits. Gold mineralisation is hosted in quartz, quartz-carbonate veins, and stockworks.

The objective of the first production batch was to evaluate the integrated process design and validate key operating parameters under active field conditions. The successful outcome confirms the metallurgical leachability of the ore and demonstrates that the high gold recovery rates established during earlier laboratory testing can be successfully replicated in the production environment.

What management said

Commenting on the development, MD Hanuma Prasad Modali said, “Successfully validating the complete processing flowsheet, from gravity concentration and intensive leaching through to gold recovery and doré production, under live operating conditions significantly de-risks the project and provides confidence in its commercial potential.” He added that this marks a defining milestone in the company’s journey as it transitions from “an explorer to a gold producer.”

“This achievement is the result of years of technical planning, engineering and execution. It reinforces our confidence in the upgraded processing plant and our strategy of building a globally diversified portfolio of producing gold and critical mineral assets. As we continue to advance Altyn Tor towards full-scale production, we remain focused on unlocking additional resource potential and creating long-term value for our shareholders,” the MD said, according to the regulatory filing with the BSE.

Building on this milestone, the company will continue advancing the Altyn Tor Project towards full-scale commercial production while progressing plant optimisation, resource expansion and mine planning. It also plans to update the project’s mineral resource estimate and develop a revised Life-of-Mine plan, further unlocking the project’s long-term potential and strengthening Deccan Gold’s vision of building a globally diversified portfolio of producing gold and critical mineral assets.

Established in 2003, Deccan Gold Mines has built a diversified portfolio of gold and critical mineral assets across India and internationally, spanning Andhra Pradesh, Kyrgyzstan, Chhattisgarh, Spain, Mozambique, Finland and Tanzania.