Bangalore: Australian exploration major, Australian Indian Resources (AIR) group is all set to discover extensive gold deposits in the under explored gold rich terrains of the country, especially Karnataka.

AIR, promoters of Deccan Gold Mines Limited (DGML), first private sector gold exploration company to be listed on the Bombay Stock Exchange, is in advanced stages of detailed exploration activities in North Hutti, South Hutti and Mangalore in Karnataka and Ramgiri in Andhra Pradesh, a top official of the company said.

Besides these four regions, AIR is also looking at Dharwad-Shimoga, Sonadehi-Gurpher in Chhattisgarh and Kolari in Eastern Madhya Pradesh as "very good gold values" have been assayed from the samples obtained from these areas, Sandeep Lakhwara, Managing Director AIR told reporters.

The company has already invested Rs 10 crore on exploration activities in various parts of the country and plans to invest Rs 30 crore in the next three years to "develop other prospects", he said.

AIR is simultaneously undertaking prospecting activities in seven states comprising Mahrashtra, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Jharkhand, Uttar Pradesh and Tamil Nadu, he said.

The company chose India as peninsular India and Western Australia share a close geological relationship. The two land masses were adjacent to each other more than 200 million years ago. Yet India produces only two tonnes of gold an year while Australia produces 280 tonnes of gold per annum, he said.

PTI