The South Australian Government is set to renew Marathon Resources' exploration licence (EL 4355) for the Northern Flinders Range project for one year.
The government has also advised Marathon that it is considering a range of possible conservation options, which may involve exclusion or the limit of mining in environmentally sensitive areas, according to the company.
Acting Minister for Mineral Resources Development Jack Snelling said the renewal would be subject to consultation on its stricter operating conditions.
Marathon Resources may apply for a further renewal under section 30A of the Mining Act 1971 (SA).
Located within the Paralana Mineral System of South Australia, the project has high prospects of copper, gold, uranium and other metals.