Deccan Gold Mines has successfully produced its first gold doré at the Altyn Tor Project in Kyrgyzstan, marking a definitive step in its transition from an explorer to a producer. The achievement, disclosed on August 05, 2026, validates the company’s processing technology under live operating conditions and significantly de-risks the path to full-scale commercialisation. This milestone confirms the metallurgical leachability of the material, translating high laboratory recovery rates into actual production output.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. For the proof-of-concept run, a batch of gravity circuit concentrate was processed through newly installed Intensive Leach System (ILS) tanks. Gold was recovered from the pregnant leach solution via the Merrill-Crowe process and subsequently smelted to produce doré. The primary objective was to evaluate the integrated process design and validate parameters in active field conditions.

Project Background and Resources

Altyn Tor is located in the Naryn region of central Kyrgyzstan, approximately six hours by road from Bishkek. Deccan Gold holds a 60% stake in Avelum Partners LLC, the developer and operator of the project. This investment represents the first entry by an Indian mining and exploration company into Kyrgyzstan. The deposit is part of the Soltan Sary mineralization zone within the Tien Shen Shear Zone, known for hosting world-class gold deposits.

Current mineral resources at Altyn Tor are estimated to contain 180 koz (5.6t) of gold. The site has historical significance, having been mined by State-owned Kyrgyzaltyn OJSC starting in 1993. Kyrgyzaltyn produced approximately 2,200 kg of gold before temporarily closing the mine in 2022. Avelum entered into an agreement with Kyrgyzaltyn in 2022 to develop and operate the mine, following a 2023 feasibility study that demonstrated the viability of increasing recovery through a new leaching circuit.

Operational Expansion and Future Outlook

Avelum is currently upgrading and expanding the processing plant capacity to include gravity and leaching circuits. Concurrently, recent drilling programmes have indicated that current mineral resources significantly understate the true size of the deposit. Drilling has shown extensions to the west and below the current pit design, with high-grade intersections potentially supporting future underground mining. Further drilling is planned from 2026 onwards to assess these extensions.

Deccan Gold intends to update the mineral resources and develop a revised life-of-mine plan. These results will be presented to the Kyrgyzstan Committee of State Reserves for authorisation to increase the operation's life. Managing Director Dr. Hanuma Prasad Modali stated that validating the complete processing flowsheet provides confidence in the project's commercial potential and reinforces the strategy of building a globally diversified portfolio.

What the Numbers Show

The production of the first doré serves as a critical technical validation rather than a volume metric. The success of the proof-of-concept run demonstrates that the engineered solution—combining gravity concentration with intensive leaching—works as designed in real-world conditions. This reduces execution risk for the upcoming capital expenditure required for full-scale plant upgrades. With resources understated due to limited drilling, the potential for resource growth remains a key value driver alongside operational validation.

Deccan Gold Mines Limited has secured a debt funding facility of ₹20 crore from Hira Ferro Alloys Limited, Chhattisgarh, to finance the completion and development of its Altyn Tor Gold Project in the Kyrgyz Republic. The transaction, disclosed on August 03, 2026, provides critical capital for the mining initiative being executed by Avelum Partner LLC, a subsidiary of Deccan Gold. This funding move supports the company’s operational expansion in Central Asia without diluting existing shareholder equity.

The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III- Para B of Part A of the Listing Regulations. The filing also references SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Subramaniam Sundaram, Company Secretary & Compliance Officer of Deccan Gold Mines Limited, signed the communication to the Corporate Relationship Department of BSE Limited.

Loan Structure and Terms

The debt agreement outlines specific repayment and security terms to mitigate lender risk while providing the borrower with necessary working capital for project execution. The loan is not classified as a related-party transaction, as Hira Ferro Alloys Limited holds no shareholding in Deccan Gold Mines Limited and is not linked to the promoter group.

The security for the loan involves a pledge of 2,50,000 equity shares held by Deccan Gold Mines Limited in Geomysore Services (India) Private Limited. The repayment is scheduled to occur in one or more tranches by the maturity date of October 31, 2026.

What the Numbers Show

The financing structure indicates a short-term liquidity bridge rather than long-term capital expenditure funding, given the repayment timeline of less than three months from the agreement date. By securing debt at a 12% interest rate instead of raising equity, Deccan Gold preserves current ownership stakes, though the high cost of capital suggests either urgent working capital needs or limited access to cheaper long-term financing instruments. The use of shares in Geomysore Services as collateral isolates the risk to that specific asset holding, protecting other corporate assets from immediate seizure in case of default.