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Trainor Project (Quadrio Lake & Oldham Range Tenements), W.A.

Further field evaluations by Dominion, and regional geophysical and geochemical data obtained by the Geological Survey of WA (GSWA), have significantly upgraded the prospectivity of Dominion’s ground holdings in the Trainor area, located about 300km north east of Wiluna within the south eastern section of the Officer Basin.

The GSWA data has focussed attention on two large circular anomalies defined by a detailed gravity survey. One of these anomalies occurs within Dominion’s Quadrio Lake tenement (E69/1699) and the other, located 25km to the south west, has been covered by the new Oldham Range application (EA69/1930).

Reconnaissance (approximately 4km x 4km spaced) geochemical sampling carried out by the GSWA has outlined significant multi-element anomalism associated with these gravity anomalies.

The margins of the 4km diameter anomaly show clustering of base metal index (As, Cu, Pb, Sb and Zn) and chalcophile index (As, Bi, Mo, Sb, Sn and W) anomalism which extends to the north over a zone of outcropping barite-haematite mineralisation. Samples of this mineralisation had previously returned associated Au, Sb and As anomalism. This widespread mineralisation and geochemical anomalism occurs within sediments of the Mesoproterozoic Quadrio Formation.

Samples in the vicinity of the very large (11km diameter) southern anomaly show significant anomalism in copper, nickel, platinum and chrome. This may reflect prospectivity for Cu – Ni – PGE mineralisation within a series of mafic – ultramafic bodies which, based on regional magnetic data, show a marked structural deflection around the gravity anomaly.

Dominion has completed systematic geochemical sampling within the Quadrio Lake tenements outlining a number of significant base metal, gold and silver anomalies in the area of the gravity anomaly and barite-haematite mineralisation.

The circular gravity feature may relate to the altered margins of an intrusive body. The association of barite-haematite mineralisation and base metal, gold and silver geochemical anomalism is believed to represent a highly prospective setting.

Further infill geochemical sampling and ground geophysical surveying is planned prior to initial drill evaluation. Geological and geochemical evaluation of the southern gravity anomaly is also planned.

During 2005/06, access issues delayed further evaluation of the Trainor, but initial drilling to evaluate geochemical targets located at the margins of these gravity anomalies is planned for the second half of 2006, following completion of heritage clearance surveys.

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Cundeelee Project, Western Australia

Dominion began exploration drilling at the Cundeelee Project, in October 2006.

The project comprises 1,155sq km of granted exploration licences in the north eastern part of the Albany Fraser belt. This little explored area is believed to be prospective for a range of deposit types, including Olympic Dam and Broken Hill-style mineralisation. The belt surrounding Dominion’s tenements is now heavily pegged.

Dominion’s initial surface geochemical exploration outlined several large scale

gold, copper and nickel anomalies. Of particular interest are a series of gravity and magnetic anomalies.

This is a remote area and physical access for drill rigs has not been possible at times, but more geochemical exploration has been done in the meantime, with the specific aim of targeting some of the geophysical anomalies.

Access issues stalled even further evaluation during 2005/06. However, the prospectivity has been greatly enhanced by the ongoing upgrading of the Tropicana Project where Independence Group, in joint venture with AngloGold Ashanti, has announced results indicating the potential for a multi-million-ounce gold deposit.

The Cundeelee Project lies along the projected continuation of the geology that hosts the Tropicana mineralisation and the extensive gold geochemical anomalism outlined by Dominion remains a significant exploration target.

Edmund Project, Western Australia

New regional magnetic data (available at no cost from the government) covering the Edmund Project at the western end of the Bangemall Basin has just been received. Apart from providing good resolution of the large magnetic anomaly at Mt Padbury (the original target for this tenement) the new data outlines a number of potentially significant small magnetic anomalies.

The main conceptual model for this ground is for sedimentary hosted (SEDEX) base metal (+ gold mineralisation.

The geology (Mid Proterozoic age sediments) is analogous to such deposits as Mt Isa and Broken Hill. More specifically the Abra deposit, which has both SEDEX (Pb + barite) and Olympic Dam (Cu–Au) style mineralisation, is hosted by similar sediments within the Bangemall Basin. The Abra mineralisation is associated with magnetite alteration and was discovered by targeting a magnetic anomaly.

Limited previous exploration at Mt Padbury has defined extensive lead, zinc and copper anomalism. It is planned to carry out detailed ground follow up of the now much better defined magnetic targets.

Mt Chalmers Project, Queensland

Under an option agreement to earn a 50% interest in Dominion’s Mt Chalmers project, Lodestone Exploration Limited completed three reverse circulation holes totalling 1,261 metres during 2005/06.

This drilling was designed to evaluate the Tungamull prospect, located 2.5 kilometres east of the old Mt Chalmers mine (historic production of 1.2 million tonnes @ 3.48 g/t gold and 1.99% copper), where earlier drilling by Geopeko had intersected substantial zones of alteration with gold, copper, lead and zinc mineralisation.

The new drilling encountered an extensive zone of anomalous copper mineralisation, typical of the Footwall mineralisation at Mt Chalmers. This appears to be the thickest known footwall style zone within the district. Metal zoning (increasing copper dominance) appears to be vectoring to the south where limited drilling exists.

Downhole electromagnetic data has defined an off-hole conductor adjacent to the most southerly hole drilled. A further nine targets have been identified within the project area.

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