Jamshedpur, Oct. 25: Indications by the Geological Survey of India (GSI), of the presence of “huge deposits of gold” in Seraikela-Kharsawan, have kicked off a gold rush in Jharkhand — the El Dorado of the East — especially after the recent “steel-rush” in this coal and iron ore rich state.

About six companies having interests in mining are already reported to have applied for lease in the Nimdih block of the district, said highly placed sources in the state mines and geology department.

The ore deposit is believed to be in the Lawa hills.

Three Australian companies, of which one is BHP Billiton Iron Ore — one of the world’s leading suppliers of iron ore products, having operations in mines, port and processing facilities — and three India companies, namely, Rungta Mines and Manmohan Minerals are in the fray.

Director of GSI (Jharkhand) R.S. Prasad, confirming the presence of the precious metal in Nimdih, said: “Our experts are exploring the area in and around Lawa hills to find the gold deposit. Drilling was carried out recently. From next month, experts will start an extensive survey of the area to find the nature and amount of deposit.”

Sources in the GSI revealed that the state’s mines and geology department had requested their experts to undertake the extensive exploration. “A couple of years ago, the mines and geology department had done preliminary exploration for gold reserve in the Singhbhum-Kolhan region. Based on its findings, which could not give much insight about the reserve, we were called in,” he said.

An officer involved in surveying and drilling hinted at a “rich presence of the precious metal” in the area. “If the initial findings are correct, the mining activity will also be viable and there is every possibility of quality deposit.”

He, however, pointed out the possibility of a portion of the deposit in the catchment area of the Subernarekha dam. “If it extends to the catchment area, that portion will have to be left out of further exploration and mining.”

Sources in the state mines and geology department said once the process of exploration is over in Nimdih, GSI would be requested to carry out such surveys in other areas. “This decision was taken after the department received applications from the Indian and foreign companies interested in mining and other activities related to mining of the precious metal in Singhbhum-Kolhan,” the sources added.