Deccan Gold Mines shares rally 16% on India’s first private gold mining project. Check details

Shares of Deccan Gold Mines Ltd jumped as much as 16% to their day's high of Rs 123 on the BSE on Monday after progress on the Jonnagiri Gold Project, a Rs 400 crore private gold mining venture where the company is a key partner.

The rally comes as the project is set to begin commercial production in the first week of May, marking a major milestone. The mine, spread across nearly 598 hectares in Andhra Pradesh, is owned by Geomysore Services India and backed by partners including Deccan Gold Mines and Thriveni Earthmovers & Infra, the Times of India reported.

Investor sentiment has strengthened as the project moves from development to production, which typically improves earnings visibility. The mine is expected to operate for at least 15 years and produce up to 1,000 kg of gold annually, supported by certified resources of 13.1 tonnes with potential to rise to 42.5 tonnes.


The development is also significant at a sector level. India imports over 800 tonnes of gold each year, while domestic production remains limited. Against this backdrop, the Jonnagiri project is being seen as an important step towards building local supply, with Deccan Gold Mines directly exposed to this opportunity through its partnership.

Deccan Gold Mines Ltd shares have gained 24% over the past month. However, the stock is still down 10% over the last six months. On a year-to-date basis, it has delivered a strong performance, rising nearly 30% so far in 2026.

Deccan Gold is a global mining company advancing gold and critical minerals projects across India, Kyrgyzstan, Mozambique, Finland, and Tanzania

Last month, the company announced it had commenced diamond drilling at its Bhalukona project in Chhattisgarh. The drilling programme is aimed at testing subsurface geology and mineralisation, with a focus on zones where earlier rock chip samples showed anomalies and coincided with favourable geophysical signatures.

The company has also initiated diamond drilling at the Logrosan Tungsten Project in Spain through its Dubai-based subsidiary, Deccan Gold FZCO. This programme is focused on evaluating tungsten-bearing zones identified by previous explorers, including its partners, to establish a maiden mineral resource for the project.

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Commenting on the development, Managing Director Hanuma Prasad Modali said the government’s focus on critical minerals aligns with the country’s broader goals of self-reliance and energy transition. He added that initiating drilling at two promising projects is a step in that direction, and reiterated the company’s commitment to responsible resource development, value creation for its roughly 50,000 shareholders, and contribution to India’s critical mineral supply chain.

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