Adelaide, Apr 5, 2006 (ABN Newswire) - Top 10 Australian gold producer, Dominion Mining Limited (ASX: DOM), says there is significant potential to extend the resource at its Challenger mine in South Australia and therefore life of mine - regarded as one of the most remote gold mining operations in Australia.

Addressing the 2006 Gold Conference in Perth today, Dominion Managing Director, Mr Peter Alexander, said the boost in known mineralisation is expected to come from a current drilling extension of the project's key M1, M2 and M3 shoots, and a suspected "shadow" of mineralisation beneath the three main ore bodies.

"Our objective at Challenger is to hold gold reserves at around 300,000 ounces per annum," Mr Alexander said.

"The main increase in reserves is likely to come from the current M2 and M3 shoots and we are seeing good potential within all three main shoots down to 600 metres vertical depth.

"There is some shadow zone below M1 and M2 and this may represent something even more significant than the current known and mined ore at Challenger," he said.

The mine produced 120,000 ounces of gold from its open-pit operation and since moving to underground mining last year, has produced more than 73,000 ounces at a cash cost of $253 per ounce and an average head grade of 9.57 g/t gold.

Mr Alexander said Dominion now had more than 70% of its reserves exposed to the spot gold price. Some 38,000 ounces @ $581 per ounce would be delivered by August this year with 56,000 ounces remaining hedged at $680 per ounce

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