Connemara Mining has been awarded 10 prospecting licences to look for gold in Co Donegal.
The licences cover gold, silver and base metals and the company said the focus of its exploration will be gold.
In a statement, the company said the Stranorlar region was selected by Connemara’s geologists following a rigourous review of gold opportunities in Ireland.
"Historical records of the Donegal area show certain anomalies consistent with gold while the geology shares similarities with the major gold discoveries by Dalradian Resources and others in Tyrone, Northern Ireland", it added.
The company is chaired by entrepreneur John Teeling, who is no stranger to drilling and prospecting.
Mr Teeling said that traces of gold have been discovered in earlier exploration in Donegal. "This is early stage prospecting but the potential is good," he added.