The mining department although has not assessed the value of expected returns from the auction, as it has yet to evaluate the exact quantity of the gold reserve, reports say. Also, tenders would be floated next month and the company selected for this would be issued licenses both for prospecting and mining of gold.
Composite license, which includes both prospecting and mining licenses, would be issued to the selected company. M/s KPMG is appointed as consultant advisor for the project, as per reports.
The mining department would be conducting exploration to asses the exact quantity of the reserve and the tendering process and allotment of licences would be completed by February 2016.
Previous surveys undertaken in 1980 and 2003 indicate gold reserve to be spread across 6.1 kilometers in Baghmara village. Also, the only gold block in the state has been demarcated in 610-hectare area. The company who is awarded the licence, would initially undertake exploration and later proceed with excavation. Previous explorations by state agencies indicate gold layers about 650 meters below the surface, and although the estimated quantity of gold under the ground is about 1,800 kilograms, it could be more, reports say.
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