PERTH (miningweekly.com) – Western Australia Mines and Petroleum Minister Norman Moore on Wednesday encouraged minerals exploration companies to apply for a share in more than A$5-million of state government funding.

His call came as part of the second round of funding for the programme, which falls under a five-year, A$80-million exploration incentive scheme (EIS) funded through the Liberal-National Government’s Royalties for Regions programme.

The cofunded drilling programme would provide up to 50% of direct drilling costs with three different caps based on the types of applications.

General multi-hole applications were capped at A$150 000 while a single deep-hole project could attract up to A$200 000 of funding.

A special category was available to genuine prospectors with funding capped at A$20 000 for each project. This funding would also support geochemical analyses based on the drilling.

Applications must be lodged with the Department of Mines and Petroleum before 17:00 on March 19.

Moore said that the government’s support for exploration drilling in under-explored areas of Western Australia had already increased knowledge of the state’s geology and helped identify potentially valuable mineral deposits.

The second round of funding is available for drilling projects planned for 2010/11, he said.

“The first round was very competitive, attracting 168 applicants which resulted in 35 projects successfully gaining support from the A$3-million in available funding.”

He added that results from some of the cofunded drilling projects have shown early indications of potential commercial success, as well as returning quality core from underexplored areas of Western Australia.

“It preferentially funds projects that promote new mineral and energy targets, and innovative exploration concepts and technologies. It also encourages industry to drill in areas that have mineral, petroleum or geothermal potential and is ultimately aimed at helping to identify new opportunities.”

The Minister said the programme illustrated the government’s support for business and regional and remote communities to take advantage of the current economic resurgence led by the resources sector.

An expanded resource sector would generate more jobs and more funding to invest into health, law and order and education for the community.

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