The Government has awarded an Australian exploration company a five-year permit to look for gold on the North Island's central volcanic plateau.
The permit awarded to Silver City covers a 33 square kilometre area south of Kawerau.
Energy and Resources Minister Simon Bridges said the company would invest at least $1.25 million into the exploration.
He said the project had the real potential to create jobs and benefit the local and national economy.
Bids on the South Island Platinum tender are being assessed and the results are expected to be announced later this year.
