Deccan Gold Mines shares surged over 13% to ₹226.30 on the BSE on Thursday following the company's announcement of successful production of its first gold doré at the Altyn Tor Gold Project in Kyrgyzstan. According to a regulatory filing with the BSE, this milestone validates the upgraded processing circuit and de-risks the project ahead of commercial production. The production of the company's first gold doré 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 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.
Deccan Gold Mines announced encouraging drill results from the Logrosan Tungsten Project in Spain, with every completed drill hole intersecting potentially economic tungsten or tungsten-tin mineralisation at the Dehesa target. The latest drilling campaign has completed seven diamond drill holes covering nearly 3,000 metres, with laboratory assays confirming high-grade tungsten mineralisation across multiple intersections. Highlights include 1.21% WO3 at 535 metres in drill hole LDD017 and 0.88% WO3 at 470 metres in drill hole LDD016, while the widest mineralised interval returned 7.5 metres grading 0.29% WO3. The results reinforce the district-scale potential of the Logrosan Project and strengthen the company's strategy of building a globally diversified critical minerals portfolio.
The Company will continue drilling at the Dehesa target while progressing exploration at the Las Brujas and Logrosan North targets later this year, as part of its strategy to unlock the broader district-scale potential of the Logrosan Project. The Logrosan Project is prospective for tungsten, tin, rare earth elements, niobium, tantalum and gold, positioning it as a significant multi-commodity critical minerals opportunity in Europe. Building on the Altyn Tor 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.
The Logrosan Project forms part of Deccan Gold's strategic investment in Spain following the Company's definitive earn-in agreement to progressively acquire a majority interest in Logrosan Minera S.L., which holds a portfolio of highly prospective tungsten, tin, rare earth element, and gold assets within one of Europe's most mineral-rich belts. The project is located within Spain's highly prospective Iberian metallogenic belt and comprises the 37 km Logrosan licence and the 40 km Maria licence, with an additional licence application covering 30 km. The acquisition is expected to be completed progressively by March 2027, with the company having the option to increase its stake to 75% through an additional EUR 1.0 million investment, subject to milestone achievement and independent valuation.
