Following the announcement, shares of the company soared nearly 20 per cent to settle at Rs 58.05 apiece on the BSE.

The government is considering a proposal to allow a private company to commercially extract gold from Ganajur gold mines in Karnataka.

The Ganajur gold project is a lead project of Deccan Exploration Services Pvt Ltd (DESPL), a wholly-owned subsidiary of DGML.

State level EAC at Karnataka has already granted TOR for the proposed project, it said adding it has already commenced detailed EIA studies.

As gold prices hover at all-time highs, companies are about to reopen mines that were abandoned for various reasons.