THE BOURSE WHISPERER: The Western Australia Government has announced the latest round of co-funded Exploration Drilling subsidies.
This years’ round of funding will result in the handout of almost $7.2million for exploration drilling to be carried out over more than 60 mineral and petroleum projects in underexplored areas.
The subsidies are part of the WA Government’s Exploration Incentive Scheme (EIS), which was established four years ago to support resources exploration.
WA Mines and Petroleum Minister, Bill Marmion said the projects would involve drilling for a wide spectrum of commodities across 2013-14.
“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,” he 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.”
Marmion listed other positive exploration drilling outcomes that had come out of the program in recent times, including the Speewah vanadium deposit; the Yeneena copper discovery; the Theseus and Yalgoo uranium discoveries and drilling that was instrumental in the discovery of the East Tropicana and Handpump gold deposits.
Recipients of Funding.
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 (depending on the target commodity), and $30,000 for prospecting projects.
Regional Development Minister, Brendon Grylls also had to get in on the act by saying the program stimulated increased private sector resource exploration and partnerships.
“Investment through the EIS contributes to new mineral and energy discoveries – which underpins economic and community development in regional WA,” Grylls said.
The WA Government’s Royalties for Regions Program has funded this program from 2008-09 to 2013-14 to an amount of $100.6million, with Government support continuing to end of 2015-16 – reaching a total of $138.1million.
Information acquired by companies from the drilling is publically released on the Department of Mines and Petroleum’s website after a short confidentiality period.
This adds to the geological knowledge of the State, and reduces the risk for subsequent explorers.