Deccan Gold Mines Ltd shares jumped as much as 16% to their day's high of ₹123 on the BSE on Monday, according to The Economic Times. The rally was triggered by significant progress on the Jonnagiri Gold Project, a ₹400 crore private gold mining venture where the company serves as a key partner. The stock has delivered strong performance with 24% gains over the past month and nearly 30% rise in 2026 year-to-date, though it remains 10% down over the last six months.
The project is set to begin commercial production in the first week of May, marking a major milestone for India's private gold mining sector. As reported by The Times of India, the mine spans nearly 598 hectares in Andhra Pradesh and is owned by Geomysore Services India with backing from partners including Deccan Gold Mines and Thriveni Earthmovers & Infra. 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 addresses India's significant gold import dependency, as the country imports over 800 tonnes of gold each year while domestic production remains limited. According to The Economic Times, the Jonnagiri project is being viewed as an important step towards building local supply, with Deccan Gold Mines directly exposed to this opportunity through its partnership. The mine's commercial production will improve earnings visibility for the company and support domestic gold supply initiatives.
Beyond the Jonnagiri project, Deccan Gold Mines has announced commencement of diamond drilling at its Bhalukona project in Chhattisgarh last month, as reported by The Economic Times. The drilling programme aims to test subsurface geology and mineralisation in zones where earlier rock chip samples showed anomalies. Additionally, the company has initiated diamond drilling at the Logrosan Tungsten Project in Spain through its Dubai-based subsidiary, focusing on evaluating tungsten-bearing zones to establish a maiden mineral resource.
