Mallee Mining of Subiaco has applied for an exploration licence covering a 968-square-kilometre area stretching from Dunkeld to Minhamite and Caramut.

It will focus on volcanic formations north, south and east of Penshurst.

If approved, the company would undertake two years of geophysical surveys along public roads and paddocks with consent of landholders and modelling of previously recorded public data.

Several other companies, particularly Stawell-based Navarre Minerals, are exploring the potential for mining gold, copper and silver reserves in what is known as the Miga Arc which stretches from near Warrnambool to the Mallee.

Previous research identified by the state government reveals a huge buried volcanic magmatic arc which could contain significant base metal deposits with economic potential for mining operations.

“It is expected the proposed ground geophysical programs will be largely conducted along public roads or over open fields between harvesting and sowing activities,” Mallee Mining says.

“Geophysical instruments are hand held and surveys involving moving over the ground surface.”

Navarre Minerals in several updates to the stock exchange remains confident of finding viable reserves to justify opening mining operations which could be underground or open cut. 

Submissions on the permit application must be submitted to the Department of State Development,  Business and Innovation by June 26.