The government of Pakistan has granted a Prospecting Licence for gold to a private company for the first time.

Shazhad International is preparing to start exploration work at two sites in the north of the country.

The company has previously had success in locating oil, gas and other minerals.

If this project works out it could literally be a goldmine for Pakistan, with a single troy ounce of gold currently worth more than $340.

Big plans

The two sites covered by the licence are Hushe and Ranthak Blocks in the Skardu area in the north of Pakistan.

Zaheer-du-Din, chairman and chief executive of Shazhad International, is confident of the projects success.

"All the regional studies which have been done in the past show that there is some gold in that area," he said.

The company has plans for initial analysis of the area which will cost approximately $3m to $4m.

Zaheer-du-Din said Shazhad International may look for a foreign partner to take part in the project.

"There are many international companies working in the gold business worldwide so we are going to get in touch with those foreign companies and maybe we'll go into a joint venture because this could be a very big project," he said.