Andhra Pradesh to Auction Boksampalli Gold Blocks After Exploration Completion

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

The mineral deposits span 1,740 hectares in Boksampalli village of Roddam mandal, with the northern block covering 1,000 hectares and the southern block 740 hectares. The blocks have been identified for grant under a Composite Licence (CL), targeting gold, platinum group elements (PGE), and iron ore.

These blocks are located in the southern part of the Ramagiri-Penakacherla Greenstone Belt, within the Penukonda-Boksampalle zone, which is known for gold mineralisation. Geologists consider the Ramagiri belt comparable to the gold-bearing greenstone belts of Kolar, Veligallu, and Hutti — some of India's most significant gold-producing regions. Until recent years, Bharat Gold Mines Ltd. (BGML) conducted gold mining activities in this belt.

Officials state that the Boksampalli area represents the southernmost extension of this mineral-rich belt and is considered highly prospective for gold and PGE deposits. Initial G4-level exploration by the Andhra Pradesh government's Mineral Exploration Research and Innovation Trust (MERIT) established the geological potential of the blocks, but resource estimation was not possible due to a lack of drilling at that stage.

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

An earlier auction attempt on October 28, 2022, failed as bidders did not pursue the process, largely due to limited exploration data available at that time. Authorities expect the current exploration program to improve investor confidence and facilitate a successful auction.

Mukesh Kumar Meena, Principal Secretary of the Mines Department, told The Hindu, "The government is committed to unlocking Andhra Pradesh’s mineral potential through a transparent, science-driven and investor-friendly approach." He noted that the ongoing G3-level exploration would significantly enhance geological confidence and enable the auction of gold blocks with reliable resource estimates. "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 added.

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