Doray Minerals has secured a native title deal which paves the way for the grant of its lease application over the Andy Well gold project in the Murchison.

The in-principle agreement was reached wit the Yugunga-Nya Native Title Claimant Group after 12 months of talks.

Managing director Alan Kelly said the deal was a significant milestone for the project which could now progress through development and into production.

Mr Kelly said the agreement included provisions for community development and significant financial benefits for the Yugunga-Nya group.

Doray owns 80 per cent of Andy Well, which is 45km north of Meekatharra.

Once the mining lease is granted, Doray can submit applications for operating licences and State Government approval.

The company in December announced a new resource of 691,000 tonnes at 14.8 grams-per-tonne for 329,000 ounces of gold at Andy Well - a 90 per cent upgrade on the maiden resource.