Peel Mining will seek approval to begin work on an exploration decline at its Mallee Bull site, south of Cobar.
The company and joint venture partner CBH Resources have given the green light to advance the project, located between Nymagee and Mount Hope.
Peel announced the plan last week to “seek regulatory approval to establish an exploration decline to enable definition drilling and exploration from underground of the deeper portions of the deposit”.
Peel’s managing director Rob Tyson said the company will also obtain a bulk sample for processing at Endeavor Mine, which is also owned by CBH Resources.
“The advancement of Mallee Bull via an exploration decline is a logical, low-risk way to unlock the project’s obvious economic potential and we are extremely pleased to see the project moving forward,” Mr Tyson said.
He said deeper drilling at the site has already returned “exceptional intercepts” of copper, silver and gold.
Following successful further underground exploration, the company plans to seek approval for conversion to a full mining operation.
Regulatory approval for the exploration decline is expected to take 6-12 months.
The project has been designed to have minimum surface impact, with less than 10 hectares of disturbance planned.
Among the plans is an accommodation camp facility for around 30 personnel.
“Given the exceptional grades of copper mineralisation at depth, and the nature of the deposits in the Cobar Basin, Peel and CBH have formed the view that there is strong potential for a significantly economic operation to exist at Mallee Bull,” Mr Tyson said.