Western Australia drilling subsidies prove successful

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Last week, the WA State Government announced new funding to support the search for minerals and petroleum across Western Australia.

Image courtesy of [Arvind Balaraman] / FreeDigitalPhotos.net
Image courtesy of [Arvind Balaraman] / FreeDigitalPhotos.net 

The latest round of Co-funded Exploration Drilling subsidies, which are part of the State Government’s Exploration Incentive Scheme (EIS), will provide almost $7.2million for over 60 mineral and petroleum projects in underexplored areas.

Mines and Petroleum Minister Bill Marmion believes 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.

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“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.”

Other positive exploration drilling outcomes supported by the program included 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 – Mr Marmion revealed.

Up to 50 percent of drilling costs, are provided through the program, with caps of $150,000 for a multi-hole project, $200,000 or  – depending on the commodity – $400,000 for a single deep hole , and $30,000 for prospecting projects.

Regional Development Minister Brendon Grylls revealed the program  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,” Mr Grylls said.

In a statement from the State Government, the Royalties for Regions Program in WA has funded the program from 2008-09 to 2013-14 to an amount of $100.6million, with Government assistance said to be continuing till the end of 2015-16 – reaching a total of $138.1million.