Marmion hands out $7.2m in drilling subsidies

Junior resources plays have shared in $7.2 million in grants in the latest round of a state government exploration subsidy scheme.

Mines and Petroleum Minister Bill Marmion said the subsidies, which cover a total of 61 drilliing projects statewide, were part of the state government’s Exploration Incentive Scheme.

The subsidies will cover a wide spectrum of commodities projects, from uranium to vanadium, and gold to copper.

The program provides co-funding of up to 50 per cent of direct drilling costs, with caps of $150,000 for a multi-hole project, $200,000 or $400,000 for a single deep hole and $30,000 for prospecting projects.

“The co-funded drilling program provides incentives to drill in underexplored areas to ensure the continued economic prosperity of the State’s resources industry, particularly in the current financial environment,” Mr Marmion said.

“The scheme has already reaped significant rewards with its contribution to the discovery of the Nova deposit with a co-funding grant to Sirius Resources, as well as providing co-funding to commercially promising and scientifically interesting projects, such as deep drilling which led to the re-opening of the Mt Magnet gold mine.”