Talisman Mining, Evolution Mining and Kalgoorlie Consolidated Gold Mines are among a number of miners to win state government exploration grants, with gold, nickel and copper the most popular commodities targeted.
Talisman Mining, Evolution Mining and Kalgoorlie Consolidated Gold Mines are among a number of miners to win state government exploration grants, with gold, nickel and copper the most popular commodities targeted.
Around $5 million will be dispersed to nearly 50 companies and prospectors as part of the latest round of the Exploration Incentive Scheme’s co‑funded drilling program.
The lion’s share of grants are for programs in the Goldfields, with some near Telfer and near Meekatharra.
Broken down by commodity, more than half of the grants are for projects targeting gold in some way, with copper the second most popular at around 50 per cent.
About a quarter included nickel as a target, with companies able to select more than one commodity.
Iron ore did not feature, with the numbers a sign of how gold prices are holding up much better in Australian dollar terms than those of the bulk commodity.
Modelling by the Department of Mines and Petroleum suggested the return for the state government was around $24 million for every $1 million invested, with the formerly Sirius Resources controlled Nova nickel deposit the flagship discovery.
Mines and Petroleum Minister Bill Marmion said the government remained committed the the program because new discoveries would be needed to underpin the industry in future.
“In the past financial year alone, we have seen a bumper crop of finds, including gold at Alloy Resources' Horse Well, antimony mineralisation at Artemis Resources’ Eastern Hills, zinc at Encounter Resources’ Millennium and nickel at Panoramic Resources’ Savannah North,” he said.
“Gold Road Resources also received funding under the scheme to drill a deep hole to help prove up its Gruyere gold discovery in the Yamarna greenstone belt.”
In return, drillers must submit reports to add to the department’s geological database.
About 590 projects have been funded in the scheme’s seven years, with the latest round the 12th such announcement.
The government has committed to the scheme continuing to 2017, and at that point will have issued $130 million of grants.
The news was welcomed by Association of Mining & Exploration Companies chief executive officer Simon Bennison.
“The program is highly regarded by industry and has provided co-funding for more than 590 projects since it began in 2009," Mr Bennison said.
“Sourcing capital is extremely challenging in the current market conditions where investors are extremely risk adverse and not investing in exploration.
“It is positive that the Government is also committed to reducing red tape in order to improve business practices and stimulate mining and exploration in the State."