Australian-owned Krakatoa Resources already has one Central West drilling site at a location north of Orange and this new one is in the Lachlan Fold Belt near Hill End.

Samples already taken in the area revealed high-grade gold rock chips.

A spokeswoman for the NSW Resources Regulator said the approved exploration activity will include nine diamond drill holes to explore for minerals.

"[The application] was deemed to meet the department's complying exploration activity guidelines and included rehabilitation objectives and completion criteria to minimise the impact of the activities on the environment," she said.

"A rehabilitation security deposit of $10,000 is held by the department to ensure rehabilitation is completed to the required standards."

While Krakatoa intended to start drilling this month, the company's executive chair Colin Locke said it was yet to start.

"Drilling rigs are at a premium, there's between 30 to 40 [in use] that we know of in the region so it's pretty hard to get a rig," he said.

Mr Locke said he was unable to provide the Western Advocate with a start date for drilling until it had first advised the Australian Securities Exchange (ASX).

"With anything that may influence a share price, we have to announce it to the ASX first," he said.

The Resources spokeswoman said Krakatoa intends to complete exploration activities in the Lachlan Fold Belt by June, 2024.

Krakatoa's other site in the region is called Belgravia, located 35 kilometres north of Cadia Gold Mine near Orange, where they are drilling for gold and copper.