Deccan Gold Mines Limited Confirms Bhalukona Mineralised Corridor

Deccan Gold Mines Limited has confirmed nickel, copper and platinum-group-element mineralisation at its Bhalukona-Jamnidih project in Chhattisgarh, outlining a 430-metre-wide mineralised corridor extending beyond 200 metres in depth. The strongest reported interval returned 1.29% nickel equivalent, while drilling indicates a larger target zone of up to 1.3 kilometres.

What did Deccan Gold Mines Limited find at Bhalukona?

Deccan Gold Mines Limited found sulphide mineralisation containing nickel, copper and platinum-group elements, including palladium, at its Bhalukona-Jamnidih Composite Licence area in Chhattisgarh. The company said the discovery is hosted in a layered mafic intrusive complex, a geological setting associated with nickel-copper sulphide systems.

The project covers nearly 30 square kilometres in Mahasamund district and the licence was executed on April 1, 2025. Initial rock-chip and soil sampling had identified a mineralised zone of about 700 metres containing nickel, copper and platinum-group elements. Drone-based magnetic surveys also indicated that favourable rock units could continue beneath soil cover south of the originally identified zone.

Deccan Gold said its first drill hole, BJD-01, encountered three mineralised gabbroic layers with a combined width of more than 60 metres. This included nearly 30 metres of potentially economic sulphide mineralisation above 0.2% nickel equivalent, with an average grade of around 0.4% nickel equivalent. A peak interval from 103.4 metres returned 1.01% nickel, 0.29% copper and 0.2 grams per tonne of palladium.

How extensive is the Bhalukona mineralised corridor?

The confirmed mineralised corridor is approximately 430 metres wide, extends to depths exceeding 200 metres and remains open for further drilling. Deccan Gold has also identified a broader target area that may extend for up to 1.3 kilometres, based on drilling, sampling and geophysical work.

The company initially completed 1,200 metres of diamond core drilling across seven holes, with every hole intersecting varying widths of disseminated and heavy-to-massive sulphide mineralisation. Subsequent information provided by the company referred to approximately 1,500 metres of drilling across nine holes, indicating that the exploration programme has continued beyond the first campaign.

An induced-polarisation survey identified signatures associated with multiple sulphide mineralisation zones, some extending as deep as 300 metres below surface. These survey results do not establish a mineral resource, but they provide targets for further drilling beneath and beyond the known mineralised area.

What do the reported drilling results show?

The drilling results show nickel, copper and palladium-bearing sulphides across several intervals, with nickel equivalent grades calculated using stated market price assumptions. Deccan Gold used prices of US$20,000 per tonne for nickel, US$13,000 per tonne for copper and US$1,500 per ounce for palladium in its nickel-equivalent calculation.

Microscopic studies identified pentlandite, chalcopyrite and pyrrhotite. Pentlandite is associated with nickel mineralisation, chalcopyrite with copper, and pyrrhotite was also reported in the sulphide assemblage. The company described the results as evidence of a potentially significant nickel-copper sulphide system, while maintaining that the project remains an exploration asset.

Earlier company communication said assay results from holes two through seven were pending. The reported intervals for BJD-02, BJD-03 and BJD-04 indicate that results from part of the programme have subsequently been released, while further exploration and assay work remain relevant to defining the full extent of mineralisation.

Why is Bhalukona important for India's critical minerals exploration?

Bhalukona is important because it is among the early nickel-copper-platinum-group-element licences granted following the central government's push for critical minerals exploration. Deccan Gold has described the 100%-owned Bhalukona project as India's first nickel, chromium and PGE licence under a composite licensing framework that can progress from exploration to mining.

Nickel is used in stainless steel and battery supply chains, while copper is important for electrical equipment and energy infrastructure. Palladium and other platinum-group elements have industrial applications. The presence of these metals at one project gives Bhalukona exposure to several critical mineral categories, although commercial production will depend on resource definition, technical studies and required approvals.

The company has said it intends to accelerate drilling after the monsoon to define a mineable resource and advance applications for mining leases. It has indicated a plan to apply for a mining licence by 2028. Deccan Gold has also stated that it sees potential for Bhalukona to become India's first nickel mine, but that outcome has not yet been established through a formal mineral resource or feasibility study.

How has the Bhalukona announcement affected Deccan Gold Mines?

The Bhalukona discovery announcement was followed by a 23% rise in Deccan Gold Mines shares over two days, according to the provided market report. The move came after the company reported the initial nickel, copper and palladium mineralisation from the project's first phase of drilling.

For investors, the development broadens Deccan Gold's portfolio beyond gold exploration into critical minerals. The company operates in gold exploration and mining and lists projects in India, Kyrgyzstan, Finland and Tanzania, alongside the Bhalukona-Jamnidih nickel, chromium and associated PGE block. The reported drilling results add exploration exposure rather than a confirmed producing asset.

The key financial and operational consideration is the next phase of drilling. The current results identify mineralised intervals and geophysical targets, but they do not provide a defined mineable resource, reserve estimate, capital cost or production schedule. Further drilling will be required to assess continuity, grade distribution and the potential scale of a future mining operation.

Conclusion

The Bhalukona results give Deccan Gold a documented nickel-copper-PGE exploration discovery in Chhattisgarh, supported by a 430-metre-wide corridor, drilling beyond 200 metres depth and a reported peak nickel-equivalent grade of 1.29%. The project has strategic relevance because it sits within India's developing critical-minerals exploration framework, but it remains at an early exploration stage.

Investors will next watch the accelerated post-monsoon drilling programme, outstanding assay updates, progress toward defining a mineable resource and the company's stated plan to pursue mining lease applications by 2028. These steps will determine whether the exploration results can be converted into a technically and commercially defined mining project.