Australian-owned Krakatoa Resources already has one Central West drilling site and has applied to drill a second location.

The new site, known as the Turon Project, lies within the Lachlan Fold Belt's Hill End Trough and samples already taken have revealed "high-grade gold rock chips".

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"We've never drilled there before, but others have ... past explorers report numerous significant gold grades," Krakatoa Resources executive chair Colin Locke said.

"It's never had a modern drill program. I think we'll find some good numbers there judging by the rock chips that were picked up."

Mr Locke said the application to commence diamond drilling comes following 18 shallow holes that were drilled north of the historical Quartz Ridge Mine.

"The Quartz Ridge line of gold workings extend over a length of 1.6 kilometres from its namesake mine situated in the northern extremes to the Dead Horse Reef Mine," he said. "The vein quartz is up to 10 metres wide and forms a north-south strike ridge.

"Quartz Ridge represents an exciting shallow exploitable opportunity."

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Mr Locke said once approved, the diamond drilling program would involve cores being drilled out of the ground and then tested for gold reserves.

"The first round [of drilling] could last up to a week," he said. "There will be no noise or environmental effect. It'll be no noisier than a chainsaw."

If good gold reserves are discovered, Krakatoa will then put in an application to commence mining.

"If we can get a mine out of it, it'll create employment in the area," Mr Locke said.

He said the terrain around the Quartz Ridge Mine is rocky and hilly and not conducive to cropping or farming, and the drilling will have no negative impacts on the landscape.

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The drilling site is 100 per cent owned by Krakatoa and Mr Locke said the company has "really good relationships" with nearby property owners.

Krakatoa is already drilling for gold and copper reserves at its Belgravia site which is located 35 kilometres north of Cadia gold mine near Orange.

"It's on the same geological belt as Cadia," Mr Locke said.