Govt funding helped resource discoveries

The state government has heralded its Exploration Incentive Scheme after discoveries of gold and iron ore which were partially funded via its co-funded drilling program.

Beadell Resources recently announced a new gold discovery at the Tropicana Belt.

Ramelius Resources' also intersected gold at its Mt Magnet Saturn Pit.

Cazaly Resources has also returned good values of iron ore at its Earaheedy Project in the state's Mid-West through the co-funded drilling project.

All three projects received funding via the EIS.

Mines and Petroleum Minister Norman Moore said, "The EIS encourages exploration in under-explored or greenfield areas to support the continuity of WA's outstanding resources industry."

In the 2010-11 program, 62 projects are sharing $5.3million of State Government funding.

In this drilling round, Encounter Resources at Yeneena, Alchemy Resources at the Magnus project, and Atlas Iron at their Hickman project have also announced positive results.

The Co-funded Industry Drilling Program, one of the EIS's signature programs, provides co-funding of up to $150,000 per project or $200,000 for a single deep hole for exploration drilling in under-explored greenfield or frontier areas.

Mr Moore said the next round of co-funded drilling applications would open soon.

"I encourage resources companies to apply so we can continue to see equally exciting discoveries in the future," he said.

Applications for co-funded drilling projects for 2011-12 will open in late February 2011.

Another round of applications for projects to occur in 2012 will open in August 2011.