An Australian gold company has become the latest exploration company to benefit from a government grant designed to significantly boost the Australian resources sector.
Ausgold has announced that it will receive $150,000 through a grant from the Western Australian Government, as part of the countrywide Exploration Incentive Scheme (EIS).
The funds will be used to undertake a drilling programme later this year at the company’s Katanning Gold Project (KGP) in Southwest Yilgarn, Western Austraila.
The company’s application for the grant, which focused mainly on the company’s Datatine prospects and the Dingo-Likin trend within the KGP was successful as it was deemed to meet the criteria of the EIS’s Co-Funded Exploration in Drilling Program.
The program will provide up to 50% of the cost of innovative exploration drilling projects, with funding capped at $150,000.
Drilling is expected to take place in early October 2017.
Ausgold’s Chief Executive Officer, Matthew Greentree, said:
“As a Western Australian-focused explorer, we are pleased the State Government has continued to demonstrate its support for the EIS scheme, which will allow Ausgold to test geological concepts at our Katanning Gold Project.
“The two prospects selected for the EIS drilling have coincident geophysical and geochemical anomalism combined with a favourable structural setting for gold mineralisation. We look forward to drilling them both as part of a larger drilling program to be undertaken later this year.”
The Exploration Incentive Scheme
EIS of a state government initiative designed to encourage exploration in Western Australia for the long-term sustainability of the resources sector.
The $130mn initiative is aimed to stimulate “increased private sector resource exploration, leading to new mineral and energy discoveries.”
It is made up of five high-level programs, one of which includes the “Innovative drilling promotion.”
The Co-Funded Exploration Drilling Program is a flagship program of the Exploration Incentive Scheme (EIS). It is a competitive program, open for applications twice a year, which offers up to a 50 per cent refund for innovative exploration drilling projects, capped at specific amounts.