Record exploration investment figures for NSW

NSW has reached a record level of investment in the search for new mineral resources, according to figures just released by the Australian Bureau of Statistics.

The figures for Australian mineral exploration expenditure for 2005-2006 show that private mineral exploration expenditure for NSW rose 55 per cent over the previous year to $114 million.

The $30m seven-year Exploration NSW initiative has generated increased exploration interest in NSW, setting the scene for an exploration and development boom.

In its first six years, the $28.5 million invested by the NSW Government has seen over $500 million worth of private sector exploration, $1.8 billion in royalties to the State and $50 billion in mineral production.

Private exploration investment in NSW has gone from $51m in 2003/04 to $114m in the past year.

While the NSW figure covers all mineral commodities, the higher result represents increased exploration for coal, copper, gold and zinc. 

Major metal mining companies are attracted to the opportunities offered by NSW, with the world’s largest gold producer Newmont making a new gold discovery near Blayney in association with active NSW junior explorer Alkane Resources.

The New Frontiers initiative, which comprises a two year budget enhancement of $8m, will promote further exploration by providing valuable new information on the mineral potential of under-explored areas.

Additional points:

• Coal exploration has doubled in the past 12 months from $28m to $56m
• Copper exploration has more than doubled from $8.4m to $19.5m
• Recent discoveries -Newmont and Alkane have located encouraging gold mineralisation at Moorilda near Blayney.
• Newmont has committed to spend $5m in a major program of drilling to outline the resource potential.
• A recent drilling by Straits Resources at Girilambone near Nyngan has located extensive new copper mineralisation. 
• Straits Resources has announced that it will open a new gold mine at Hillgrove in the New England region