Deccan Gold Mines said on Sunday that early modelling at its Bhalukona project in Chhattisgarh points to over 4 million tonnes of nickel-copper-platinum group mineralisation. The estimated grade is about 0.24% nickel equivalent.
At a glance
- The estimate covers only about a quarter of a 1.3-km mineralised corridor, near the surface.
- The company says the figures are not a defined mineral resource or reserve.
- Deccan Gold has drilled 15 diamond-core holes totalling 2,773 metres since March 2026.
Background
Mineralisation is rock that contains metal; it becomes a resource only after enough drilling and testing show it could be mined. Nickel equivalent combines the value of several metals, here nickel, copper, platinum and palladium, into one grade. Deccan Gold received the Bhalukona-Jamnidih composite licence from the Chhattisgarh government on April 1, 2025.
What Deccan Gold found
Deccan Gold Mines said preliminary modelling shows potential for over 4 million tonnes of nickel-copper-platinum group mineralisation at Bhalukona. The estimated grade is about 0.24% nickel equivalent, CNBC TV18 reported.
The estimate covers near-surface rock across about 300-350 metres of a 1.3-km corridor. That is roughly 25% of the corridor identified so far.
Deccan Gold was one of the early companies to receive a nickel exploration licence in India, CNBC TV18 reported. The Chhattisgarh government granted it on April 1, 2025.
How the estimate was built
The company has explored the 30-square-km project in Mahasamund district for 19 months, using drone magnetic, LiDAR and induced polarisation surveys. Diamond-core drilling since March 2026 covered 15 holes and 2,773 metres.
Drilling has traced a mineralised zone more than 100 metres wide, about 1.3 km long and deeper than 200 metres. The main sulphide minerals are pyrrhotite, pentlandite and chalcopyrite, with palladium and some platinum.
What it means
The findings are an early-stage view, not a defined resource, and more drilling is needed to test scale and economics. Geophysical surveys suggest repeats of the mineralised layer that the model does not yet include.
Managing director Hanuma Prasad Modali called Bhalukona an encouraging milestone in the company's effort to unlock India's domestic critical-mineral potential.
Our read
Outlook: neutral. This is an early exploration result with no defined resource or production plan, so it does not affect nickel supply for years.
What to watch
- Further drilling results that test the rest of the 1.3-km corridor.
- Whether Deccan Gold publishes a formal mineral resource estimate.
For information only, not investment advice.
Nickel price in India
metalscost.com India reference price as of 2026-11-05.
Detailed analysis
Timeline
- 2025-04-01: Deccan Gold receives the Bhalukona-Jamnidih composite licence from Chhattisgarh.
- 2026-11-01: Deccan Gold reports over 4 million tonnes of nickel-copper potential at Bhalukona.
Supply Drivers
The find is at an early exploration stage and would take years to become supply.
Government Policies
Chhattisgarh granted the composite licence in April 2025, one of India's early nickel exploration licences.
What could lift prices
- The estimate is preliminary and far from production, so it adds no near-term nickel supply.
- More drilling is needed before any mine could be planned.
What could weigh on prices
- A larger find could add to nickel supply in India over the long term.
- Geophysical surveys point to more mineralisation beyond the current model.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Medium | The project could add to India's domestic sources of nickel, copper and platinum group metals. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Mining Exploration | Positive | Early results support further drilling at Bhalukona. |
| Critical Minerals Mining | Neutral | The project is years away from any production. |
Who gains, who loses
- Deccan Gold Mines: The results support further exploration at a licensed nickel project.
- Deccan Gold Mines shareholders: Further drilling and studies will need more spending before any return.
Other ways this could play out
- If further drilling confirms the extra layers, the estimate could grow beyond 4 million tonnes.
- If grades disappoint, the project may not become an economic mine.
Price risks
- A grade of about 0.24% nickel equivalent may be too low to mine profitably.
- Exploration results can change as more drilling is done.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
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