The funds are expected to be applied across 2013-14.

The government said the subsidies, part of its exploration incentive scheme (EIS) launched four years ago, would signal global investors that WA was serious about attracting investment.

“The scheme has already reaped significant rewards with its contribution to the discovery of the Nova deposit with a co-funding grant to Sirius Resource as well as providing co-funding to commercially promising and scientifically interesting projects, such as deep drilling which led to the re-opening of the Mt Magnet gold mine,” Mines Minister Bill Marmion said.

The program provides co-funding of up to 50% of direct drilling costs with caps of $150,000 for a mulit-hole project, $200,000 or $400,000 for a single deep hole and $30,000 for prospecting projects.

Industry reaction has been positive, with the Association of Mining and Exploration Companies calling the subsidy a much needed boost amid continuous decline in exploration spending.

“Of most concern is the decrease in greenfield exploration, which fell by 28% in the December 2012 quarter,” AMEC chief executive Simon Bennison said.

“The industry has seen a lack of investor confidence in exploration companies that has made access to equity finance almost impossible.

“This decrease in greenfield exploration has serious consequences for future governments given greenfield exploration is responsible for finding the mines of tomorrow.”

Government support for EIS has totalled $100.6 million since 2008.

Other than Nova, other outcomes supported by the program have included the Speewah vanadium deposit, the Yeneena copper discovery, the Theseus and Yalgoo uranium discoveries, and drilling that led to discovery of the East Tropicana and Handpump gold deposits.