A landholder's guide to exploration

To explore for minerals in NSW, individuals or companies must apply for an exploration licence under the Mining Act 1992. These licences are administrated by NSW Resources. There are currently over 1,300 exploration licences granted over NSW (July 2025). For an up-to-date list of exploration licences in NSW, refer to the Mining Titles Register.

An exploration licence may also be referred to as a title, authority or a tenement. The licence holder can also be known as an explorer, titleholder, authority holder, prospector, or licensee. 

An exploration licence grants the holder the exclusive right to explore for specific minerals or group of minerals within a designated exploration area. Licences are initially granted for a term of up to 6 years and can be renewed. 

An exploration licence does not permit mining. The licence is strictly for exploration purposes and does not guarantee that a mineral resource will be discovered or that mining will ever occur.

There are 2 types of exploration licences in NSW:

• Standard licences which allow a full range of exploration activities and are the most common type of licence.
• Low-impact licences only permit a limited range of exploration activities and have different requirements under the Commonwealth’s Native Title Act 1993. These licences are relatively uncommon. 

For more information about the lodgement and assessment of an exploration licence application, refer to What happens when a prospective explorer applies for an exploration licence?

There are various exploration activities that can be carried out under an exploration licence. These activities depend on several factors such as the nature of the minerals being sought, geology of the area, and the level of existing knowledge. 

Exploration activities can range from minimal-impact activities that do not disturb the land to more intensive activities that will disturb the land and require rehabilitation. 

The most common exploration activities include:

• geological mapping where geologists walk or drive across the land to observe the location, orientation and characteristics of rocks and sediments
• geochemical surveys which involve rock or soil samples being taken from the ground surface or just below the surface, and undergoing chemical analysis at a laboratory
• geophysical surveys involving the use of instruments that are either hand-held or mounted on a vehicle or aircraft, to observe geophysical properties
• drilling which typically involves using a vehicle mounted drilling rigs to bring rock samples or drill core to the surface for geological logging and chemical analysis as well as enable geophysical surveys down the drillhole
• bulk sampling which involves the excavation of a large pit to collect a large sample to allow further testing.

Typically, exploration starts with minimal impact activities and then progresses to more intensive activities once a potential mineral resource is identified. Exploration is iterative in nature through testing and narrowing down prospecting areas. This can mean multiple areas are explored using different methods over time.

Information collected from these activities supports the definition of the location, quantity and quality of the mineral resources, and the potential viability of extracting the resource. 

For more information, refer to the Types of exploration page.

The demand for mineral resources is expected to rise significantly as global investment in clean energy and other advanced technologies increases. 

NSW has rich  mineral resource base, especially critical minerals, which can help meet this growing global demand. 

Exploration is crucial for driving the discovery and development of these mineral resources into mining projects. 

In the 2023-2024 financial year, exploration licence holders spent over $258 million on exploration activities across NSW. This substantial investment highlights the exploration sector’s significant contribution to the state’s economy and commitment to future resource development.  

This guide refers to ‘exploration’, ‘exploration licences’ and ‘explorers’. 

Exploration can also be referred to as prospecting.

An exploration licence grants the holder the exclusive right to explore for specific minerals within a designated exploration area.

An exploration licence may also be more broadly referred to as a form of title, authority, or tenement. The holder of an exploration licence can also be known as an explorer, titleholder, authority holder, prospector, or licensee. 

An explorer in this guide can also refer to someone who holds either an exploration licence or an assessment lease. 

While the focus of this guide is on exploration licences, the information also applies to assessment leases. 

An assessment lease is a type of prospecting authority that exists as a ‘bridge’ between exploration and mining. It is typically used when a mineral resource has been defined, and additional studies are being undertaken to determine whether mining is viable, or whilst approval for mining is being sought. These types of leases are not common in NSW. 

NSW Resources is also referred to as the department throughout this guide. 

The information provided in this guide is also focused on exploration licences for minerals, including coal under the Mining Act 1992. The information does not apply to exploration licences for petroleum, including coal seam gas, under the Petroleum (Onshore) Act 1991.  

For more detailed definitions of key terms used in this guide, refer the Mining A to Z web page.