Biz Andhra Desk
Amaravati: Andhra Pradesh is stepping up efforts to unlock its mineral wealth, with the state identifying 14 prospective zones covering nearly 1.58 lakh hectares that could hold significant gold deposits.
The move comes as commercial gold production has already begun at Jonnagiri in Kurnool district, strengthening hopes that several other districts could emerge as major gold-bearing regions following systematic exploration.
The state government, with financial support from the National Mineral Exploration Trust (NMET), has accelerated exploration activities in Sri Sathya Sai, Annamayya, Chittoor, Anantapur and Prakasam districts to establish the extent of gold reserves.
Four-Stage Exploration Process
Gold exploration follows a four-stage scientific process.
The initial G-4 stage involves geological surveys of soil and rock formations to identify potential mineral-bearing zones. If the results are encouraging, exploratory drilling is carried out at intervals of around 400 metres under the G-3 stage.
Projects showing positive results then move to the G-2 stage, where drilling is intensified at approximately 200-metre intervals to estimate mineral resources more accurately. Successful projects eventually reach the G-1 stage, enabling the government to auction mining leases and allow commercial extraction.
Exploration Begins in Sri Sathya Sai District
In Joukul village of Nambulapulakunta mandal in Sri Sathya Sai district, around 6,000 hectares have been divided into six exploration blocks of 1,000 hectares each.
The state has approved exploration by five companies in Blocks A to E, while Block F has been kept out of exploration as it falls within the proposed Mega Solar Park area.
The participating companies will prepare preliminary geological reports, after which NMET will provide financial assistance for detailed exploration.
Ramagiri Mining Belt Revived
The government is also reviving exploration in Ramagiri, once home to the former Bharat Gold Mines Limited (BGML) operations.
Around 2,000 hectares adjoining the old mines have been divided into northern and southern blocks for fresh exploration under the G-4 stage.
Meanwhile, the Geological Survey of India (GSI) has commenced G-3 exploration in the Boksampalli North and South blocks in Roddam mandal, where gold deposits are believed to exist across 1,740 hectares.
Chigurugunta Holds Significant Gold Potential
Among the state’s most promising prospects is Chigurugunta in Chittoor district.
Previous studies estimated that 273 hectares in Chigurugunta and nearby B. Santhanam contain around 2.2 million tonnes of gold-bearing ore, with an average grade of 5.64 grams of gold per tonne.
Geologists estimate the area could contain nearly 12,500 kilograms of gold. The block, which was earlier allotted to a central public sector mining company but remained undeveloped, is now being prepared for e-auction.
If mining begins, annual production is estimated at 600 to 1,000 kilograms of gold.
Jonnagiri Already Producing Gold
The Jonnagiri Gold Project in Kurnool district remains Andhra Pradesh’s first operational gold mining project.
Mining company Geo Mysore Services India Pvt. Ltd. has been granted exploration and mining rights over 1,400 hectares and has already commenced production.
The mine currently recovers around 1.5 grams of gold per tonne of ore, with estimated reserves of 15,000 kilograms of gold in the lease area.
The company has set a target of producing 400 kilograms of gold annually, making Jonnagiri a key milestone in Andhra Pradesh’s efforts to develop a robust gold mining sector.
The state government expects ongoing exploration to identify additional commercially viable deposits, potentially positioning Andhra Pradesh as one of India’s leading gold-producing states in the coming years.
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