The Andhra Pradesh government is preparing to auction the Boksampalli North and South gold blocks in Anantapur district of the Rayalaseema region after completion of the ongoing advanced-stage mineral exploration by the Geological Survey of India (GSI).

The mineral is spread over 1,740 hectares at Boksampalli village of Roddam mandal — 1,000 hectares in the northern block and 740 hectares in the southern block. The areas have been identified for grant under a Composite Licence (CL), with gold, platinum group elements (PGE), and iron ore listed as the target minerals.

The blocks are located in the southern part of the Ramagiri-Penakacherla Greenstone Belt, within the Penukonda-Boksampalle zone, known for gold mineralisation.

Geologists consider the Ramagiri belt comparable to the gold-bearing greenstone belts of Kolar, Veligallu and Hutti, some of the country’s most significant gold-producing regions. Until recent years, gold mining activities in this belt have been carried out by the Bharat Gold Mines Ltd. (BGML).

Officials say that the Boksampalli area represents the southernmost extension of the mineral-rich belt and is considered highly prospective for gold and PGE deposits.

Initial G4-level exploration conducted by the Andhra Pradesh government’s Mineral Exploration Research and Innovation Trust (MERIT) has established the geological potential of the blocks. However, resource estimation could not be undertaken because no drilling has been carried out at that stage.

To address this gap, the GSI is presently conducting G3-level exploration in both the blocks, with work expected to be completed by the end of the 2026-27 financial year, according to the officials in the Mines Department. The blocks will be taken up for auction once the G3-level resources are established, the officials say.

An earlier auction attempt on October 28, 2022, failed to materialise as bidders did not pursue the process, largely due to the limited exploration data available at the time.

Authorities expect the ongoing exploration programme to improve investor confidence and facilitate a successful auction in the future.

“The government is committed to unlocking Andhra Pradesh’s mineral potential through a transparent, science-driven and investor-friendly approach,” Mukesh Kumar Meena, Principal Secretary, Mines Department, told The Hindu.

The ongoing G3-level exploration would significantly enhance the geological confidence and enable the auction of the gold blocks with reliable resource estimates, he observed. “Our objective is not merely to auction mineral blocks, but to attract serious investors capable of undertaking systematic exploration, responsible mining and value addition, thereby creating employment and accelerating industrial development in the Rayalaseema region,” Mr. Meena said.

It may be recalled here that Chief Minister N. Chandrababu Naidu had launched the production at the Geomysore Services India Pvt. Ltd. (GMSI) plant, at the Jonnagiri gold mine of Tuggali mandal in Kurnool district on June 24.