Nundydroog Mine (NM) The Kolar Schist Belt (2700Ga) hosting the well known Gold mine is

one of the richest gold mineralised areas amongst the Archaean greenstone belts of the world.

These can broadly be classified into three distint lithounits, i.e (i) Mafic schist (ii) felsic schist (iii) BIF and graphite-sulphide schist in order of abundance. The mafic schist is the dominant rock type occupying the western portion of the schist belt and hosts most of the auriferous lodes. It comprises metamorphosed basalts (pillowed), gabbro and pyroxenite, now represented by hornblende schist, amphibolites, and ultramafic schist. These groups of mafic rocks represent composite flows and intrusive sheets.

K.G.F has produced among the richest gold deposits in the craton from one of the deepest underground mines of the world. The mines reached a depth of about 3211mts. (113th level) from surface.

List of Shafts in Nundydroog mineSn Shafts

A Shafts used for mine production

1 New Golgond shaft

2 Henry’s Shaft

3 New Trail shaft

4 Northern Project

B Shaft used for other purposes like pumping, etc

5 Balaghat Tailor’s shaft

6 Richard shaft

7 Walker shaft

8 New Trail shaft

9 Henry shaft

10 South shaft

List of Shafts in MCA MineSn Shafts

A Shafts used for mine production

1 Hancock’s shaft

2 Gifford’d shaft

3 Edgar’s shaft

4 Tennant shaft (2 nos)

5 Glen’s shaft

B Shaft used for other purpose like pumping etc.

6 Edgar’s shaft

7 Mct Incline shaft

8 Main Shaft

9 Oakley Shaft

Mine Related Activities In the field of plant constructions, it undertook designing,

manufacturing, installing, and commissioning of headgears and winders, creation of ore handling, cursing, and stowing plants (manufactured by its signaling division according to customer needs), locos, signaling equipment and the hoist equipment.

The division comprised of four (4) workshops which were known as champion Reef workshop, Nundydroog workshop, central workshop-mechanical and central workshop electrical. The main function of these workshops were to maintain mine and mills in KGF area, and to design, manufacture, and provide sale and after sale service of engineering products.

Production Performance of the Mines in Last Five Years (Ore Milled in Tonnes)

Mine 1996-97 1997-98 1998-99 1999-00 2000-01

Nundydroog Mine(ND) 104765 70524 74007 79453 12004

Mysore Champion Amalgamated Mine (MCA)

27619 19173 14595 804 NA

Yeppamana Mine (YP) 25475 14700 14135 1845 NA

Chigargunta Mine (CG) 52629 39543 42128 46146 7836

Old Bisanatham Mine (OB) 10858 7371 10670 10677 1560

ManpowerEmployed 13000 people at one point of time during

the peak of its operations. During the year 1990-91, there were over 10000 employees which reduced to about 3500 at the time of the closure of the operations. Services of all the employees of the company had been terminated and all their liabilities have been settled under Special Benefit package.

Financial Performance Particulars Unit 1997-98 1998-99 1999-00 2000-01

Sale of gold INR mil 224.71 236.089 192.45 31.703

Sale of silver INR mil 0.602 0.386 0.731 0.047

Sale of scheelite INR mil --- ---- --- ---

Sale of T.C.T drill rods INR mil 5.304 5.273 4.119 1.717

Sale of other workshop products INR mil 13.983 11.504 22.448 10.034

Stock adjustment (includes work-in-progress)

INR mil 0.852 -4.304 -0.376 -18.296

Income from engineering contracts

INR mil 4.352 9.936 1.347 4.722

Income from projects & contracts INR mil 76.494 50.758 22.292 20.072

Income from spl. Service & scrap INR mil 169.592 30.724 33.765 345.012

Nrf/grant received from VRS/STBP payments

INR mil 306.872 12.95 8.701 209.476

Total INR mil 802.731 353.343 285.477 604.487

PowerThis plant had an installed capacity of 42MW at 25 cycles

per second (cps) and it generated nearly 21 MW. BGML also had diesel generator (DG) sets which were used during emergencies.

LandBGML has a freehold right on its mine land of over

12000acres at KGF. The company has leasehold land of 551 acres at Chigargunta Mine (Andra Pradesh), 105.23 acres of land at Yeppamana Mine (Andra Pradesh) and 416.18 acres of land at Old Bisanatham Mine (Andra Pradesh), with varying dates of expiry of leases.

Tailing Mining and subsequent milling operations for

productions of gold have contributed to over 30 millions tones of tailing dumps in the KGF region. Most of the dumps contain tailings of treated free milling ores and Kennedy’s dump consists of tailing of both refractory and free milling operations. Davy John Brown (DJB) had carried out a study on techno-economic feasibility for extraction of gold from the tailings.

Mining Reserves Broad level estimation of gold reserves was carried out by

BGML during the year 1997 for all the operational mines. Details of the mine reserves are provided.

Land Parcel of BGMLMines Location Area (Acres) Nature of

possession

Nundydroog Mine (NM)

Kolar Gold Field, Kolar District, Karnataka

12109.20 Freehold

Mysore Champion Amalgamated (MCA)

Kolar Gold Field, Kolar District, Karnataka

12109.20 Freehold

Yeppamana Mine (YM)

Anantpur District, Andhra Pradesh

105.23 Leasehold

Chigargunta Mine (CM)

Chitoor District, Andhra Pradesh

551 Leasehold

Old Bisanatham Chitoor District, Andhra Pradesh

416.18 Leasehold

BGML MinesMines Lease Expiry Date Lease Documents

Kolar Gold Field Mines 08 August 2013 Enclosure 1

Chigargunta Mine 29 August 2008 Enclosure 2

Old Bisanatham Mine 11 March 2013 Enclosure 3

Yeppamana Mine 04 November, 2002 Enclosure 4

Land use of Kolar Gold FieldsLand Use Area(acres)

Residential (Including road, drainages, parks, etc) 3753.77

Vacant Land 6204.47

Tailing dumps 177.27

Land used for mining purpose 579.00

Land leased to private agencies 285.75

Vacant land with two workshops leased to BEML 1109.00

Total 12109.26

Tailing DumpsDumps Location of Dumps

1 MCA mine (south)

2 MCA mine (north)

3 East of Railway Station, Champion Reef

4 Near Old Carpentry Shop, Champion Reef

5 North of Giffords Shafts, Champion Reef

6 Near Firing Range, Champion Reef

7 North East of Rowe’s Shaft Oorgaum

8 East of Oakley’s shaft, Oorgaum

9 North East of Oakley’s Shaft, Oorgaum

10 East of Main Shaft, Oorgaum

11 Opposite S.T. Block, Oorgaum

12 Near Kennedy’s Line ND Mine

13 Near Balaghat, ND Mine

Plant & Equipments The Company has 3(three) metallurgical plant of which 2 (two) are

located in KGF and the third in Ramgiri, near YP mine for treating the ores. The mills were operational till 1st March 2001. In addition to the mills, BGML also had equipments and machines at its shafts/mines at the time of closure.

Plant & Equipment at BGMLBook Value As on 31st March

2006 As on 31st March 2007

Shaft Sinking & Other Mining Works U/G

16.885 16.885

Water Supply 14.836 14.372

Railway Siding 0.21 0.184

Power Line 2.516 2.516

Plant & Machinery 465.449 457.117

Furniture 1.669 1.653

Office Equipment 8.046 7.964

Vehicle 16.327 16.327

Grand Total 525.938 517.018

Major Equipment and Capacity of the ND millEquipment Nos Capacity (TPD)

Crushing & Screening 650

Jaw Crusher 2

Vibrating Screen 3

Vibrating Screen (Final) 1

Cone Crusher (short head) 3

Grinding 1200

Ball Mill 1

Floatation, Leaching, & CIP 650*

Knelson Concentrator 2

Hydrocyclone 3

Slurry Pump 2

Floatation Cells 24

Concentration Thickness 2

Leaching Tanks 8

CIP Contactor 3

Final Disposal Dumps 4

The Five Year Projection of a Gold Mine

150 million tonnes of ore x 5 gm/ tonne = 750,000,000 GM

1 kg is 1000 GM = 750,000,000/1000gm= 750,000 kg

750,000 kg x 3300000 lacs = 2,475,000,000,000/ 247,500 cr

The Projected Revenue

Cost of Sales

Total cost of equipment = 8000 cr

Cost of human resource= nil on equity

Overhead cost, Cost of energyCost of community development=

76,625 cr

Gross profit= 170,875 cr

Total ecb required = US $ 300 million

Gross profit in 5 years= US $ 28 billion

Tax free returns controlled from a Vanuatu company.

Mysore MillThe Mysore Mill is located in KGF adjacent to the MCA Mine. The

mill was not operational at the time of closure as the total ore production from the ND, CG, OB, and MCA mines was less than 700 TPD and the entire ore was being processed at the ND mill.

Ramgiri MillRamgiri Mill is located in Anantapur District of Andra Pradesh

near the YP mine and processes the ore mined from RM mine. The production capacity of the mill was 250 TPD. The mill was commissioned in 1984, as part of the integrated mine-mill complex of the YP mine.

Heap Leaching Plant (HLP)BGML operated a HCP in KGF located at a distance of 4km from

the Kennedy’s (tailing) dump. The plant installed capacity was 500 TPD. It was in operation from 1986-87; hence presently stands closed. Until closure he plant had treated 0.38 Million tones and produced 303.67kg gold.