Critical Minerals Exploration Update
Deccan Gold Reports Major Expansion of Bhalukona Critical Minerals Discovery in Chhattisgarh
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Deccan Gold Mines Limited reported significant expansion of mineralisation at its Bhalukona Nickel-Copper-PGE Project in Chhattisgarh. Recent drilling confirmed a broad mineralised corridor extending approximately 430 metres with indications that the system may continue across a target zone of up to 1.3 kilometres, strengthening the project’s potential to become one of India’s most significant critical minerals discoveries.
PRICE-SENSITIVE TRIGGER
Event: Expansion of Bhalukona Nickel-Copper-PGE mineral discovery confirmed through additional drilling results.
Type: Critical Minerals Exploration Update
Impact: Positive
Immediate Effect: The latest drilling results materially increase confidence in the scale, continuity, and economic potential of the Bhalukona project, supporting accelerated exploration and future resource definition activities.
Key Metrics:
- Strike Length Confirmed: Approximately 430 metres
- Target Zone Potential: Up to 1.3 kilometres
- Drilling Completed: Approximately 1,500 metres
- Drill Holes Completed: 9
- Best High-Grade Zone: Up to 1.29% Nickel Equivalent (NiEq)
- Hole BJD-02: 15 metres grading 0.31% NiEq
- Hole BJD-03: 36 metres grading 0.23% NiEq
- Hole BJD-04: 6 metres grading 0.39% NiEq
Highlight:
- Ongoing drilling indicates the mineralised system remains open and could extend across a 1.3-kilometre exploration corridor, substantially increasing resource potential.
What Happened ?
Deccan Gold Mines Limited announced encouraging assay results from additional drilling at its Bhalukona Nickel-Copper-PGE Project in Chhattisgarh. The latest exploration programme confirmed extensive nickel, copper, palladium, and platinum mineralisation over a growing strike length and to depths exceeding 200 metres.
The company stated that drilling outcomes further validate the discovery announced earlier in May 2026 and strengthen the project’s potential to emerge as a major critical minerals asset. The mineralised corridor remains open, with ongoing exploration indicating continuity over a significantly larger target zone extending up to 1.3 kilometres.
Management highlighted that the discovery aligns with India’s strategic focus on critical mineral security, clean energy technologies, advanced manufacturing, and supply chain diversification.
Key Details
Bhalukona Exploration Programme Update:
- Additional drilling confirmed widespread nickel-copper-PGE sulphide mineralisation.
- Mineralised corridor currently extends approximately 430 metres along strike.
- Drilling has intersected mineralisation at depths exceeding 200 metres.
- Nine drill holes covering roughly 1,500 metres have been completed.
- Assay results from additional drill holes remain pending.
- High-grade zones returned values of up to 1.29% Nickel Equivalent.
- Mineralisation includes nickel, copper, palladium, platinum and associated sulphides.
- Geological studies confirmed the presence of pentlandite, chalcopyrite and pyrrhotite sulphides.
- The Bhalukona-Jamnidih Composite Licence was among the first critical mineral licences granted in India.
- Exploration activities including geophysical surveys, soil sampling and target generation programmes will continue during the monsoon period.
Note:
- The company intends to accelerate exploration efforts to define a mineable resource and progress toward mining lease applications, with the long-term objective of developing India’s first Nickel-Copper-PGE mine.
Risk Analysis
Summary:
- The discovery remains at the exploration stage and future economic viability will depend on continued drilling success, resource estimation, regulatory approvals, and eventual mine development outcomes.
Key Risks:
- Resource size and grade are not yet fully defined.
- Additional assay results may vary from current drilling outcomes.
- Economic feasibility studies have not yet been completed.
- Mining lease approvals and environmental clearances remain future milestones.
- Commodity price fluctuations could affect project economics.
- Exploration projects inherently carry geological uncertainty.
Worst Case Scenario:
- If subsequent drilling fails to establish sufficient scale, continuity, or economic grades, the project may not advance to commercial mining despite encouraging initial results.
Risk Level: Medium
Company Commentary
- Management stated that the latest drilling results significantly strengthen confidence in the scale and continuity of the Bhalukona mineralised system.
- The company believes the project has the potential to emerge as a significant critical minerals asset.
- Exploration activities are being accelerated to define a mineable resource.
- Deccan Gold aims to progress toward mining lease applications at the earliest opportunity.
- Management expressed confidence that Bhalukona could evolve into India’s first Nickel-Copper-PGE mine, subject to continued exploration success.
- The company highlighted the strategic importance of critical minerals for energy transition, resource security, and supply-chain resilience.
Official Exchange Filing: Deccan Gold Mines Ltd