Reserves and Resources
Dominion’s overall strategy for Challenger is to replace reserves depleted by ongoing mine production.
Dominion aims to maintain reserves of approximately 300,000 ounces, to provide at least another three years of mine life at current production levels.
At June 30 2006, Challenger ore reserves totaled 279,056 ounces.
The following table summarises the changes to reserves in 2005/06:
| Contained Ounces | |
|---|---|
| Reserves at end June 2005 | 298,400 |
| Mining depletion 2005/06 | 116,700 |
| Reserves at end June 2006 | 278,250 |
| Reserves added 2005/06 | 96,550 |
The principal targets during the year were the M1, M2 and M3 Shoots, with some initial evaluation of a newly identified structural target, OM1F1, where three underground diamond core holes intersected significant gold mineralisation associated with M1 Shoot-style veining and sulphide mineralisation.
| RESOURCE | RESERVE | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Shoot/Level | Category | Tonnes (t) | Grade g/t Au | Containes Ounces | Category | Tonnes (t) | Grade G/t Au | Containes Ounces | Notes |
| Underground Development | |||||||||
| M1 Crown Pillar | Measured | 21 | 9.6 | 6,450 | Proven | 23 | 76 | 5,650 | 1 |
| M1 above 840mRL | Measured | 42 | 10.3 | 13,850 | Proven | 46 | 9.4 | 13,900 | 2 |
| M1 840mRL - 580mRL | Indicated | 642 | 10.6 | 218,800 | Probable | 598 | 9.7 | 186,500 | 3 |
| M2 1060mRL - 800mRL | Indicated | 242 | 8.1 | 63,000 | Probable | 322 | 6 | 62,300 | 1 |
| Inferred | 47 | 9.7 | 14,500 | ||||||
| M2 Above (1115mRL) | Measured | 16 | 8.5 | 4,400 | Proven | 12 | 7.3 | 2,700 | 4 |
| M3 Below 1070mRL | Inferred | 54 | 5.8 | 10,000 | 1 | ||||
| Sub-Total | 1,066 | 9.7 | 331,600 | 1,003 | 8.4 | 271,650 | |||
| Stockpiles | |||||||||
| ROM | Measured | 13 | 7.5 | 3,200 | Proven | 13 | 7.5 | 3,200 | |
| Low Grade | Measured | 29 | 1.5 | 1,400 | Proven | 29 | 1.5 | 1,400 | |
| Open Pit Development | |||||||||
| SEZ Shoot | Indicated | 133 | 2.6 | 11,300 | Probable | 13 | 4.8 | 2,000 | 4 |
| Sub-Total | 1,241 | 8.7 | 347,500 | 1,058 | 8.2 | 278,250 | |||
| Gold in plant circuit | 806 | ||||||||
| Total | 1,241 | 8.7 | 347,500 | 279,056 | |||||
| Challenger Area "Shallow Deposits" | 22 | ||||||||
| Challenger West above 1080mRL | Indicated | 23 | 15.3 | 11,000 | 5 | ||||
| Challenger 2 above 1160mRL | Indicated | 42 | 2.9 | 4,000 | 6 | ||||
| Challenger 3 above 1120mRL | Indicated | 16 | 2.9 | 1,500 | 6 | ||||
| Golf Bore above 1120mRL | Indicated | 117 | 2.7 | 10,000 | 6 | ||||
| Sub-Total | 198 | 4.2 | 26,500 | 5 | |||||
Notes:-
- Based on a 3D Block Model by Dominion Gold Operations (DGO) using Surpac software. A top cut of 180g/t Au has been applied.
- Based on close spaced grade control data and detailed stope designs carried out by Dominion Gold Operations Pty Limited.
- Based on a ‘generic’ approach which takes into account both historic reconciled data from underground mining using a 180 g/t Au top cut and continuity of orebody geometry as interpreted from drilling below mined areas. This approach, developed by Dominion Gold Operations, is considered to be a more accurate forecasting approach than traditional block modelling. The resulting ‘smoothed’ estimate results in less contained gold than estimated from ‘traditional’ block modelling carried out by Resource Evaluation Pty Ltd.
- Based on 3D Block Models by Dominion Gold Operations Pty Ltd with SEZ shoot open pit optimisation of a resource above 0.5 g/t Au cut-off evaluated with a top cut applied and reserve estimated prepared above an economic cut off of 1.7 g/t Au. Underground M3 shoot reserve prepared above a 5 g/t cut off with a 180 g/t top cut applied.
- Based on a polyonal calculation by DGO.
- Based on 3D Block Models by DGO (using Surpac software). A top cut of 80 g/t Au has been applied.
ATTRIBUTION
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Peter Bamford, Tony Poustie and Paul Androvic who are full-time employees of the Company and Paul Payne of Resource Evaluations Pty Ltd, members of the Australasian Institute of Mining and Metallurgy. Peter Bamford, Tony Poustie, Paul Androvic and Paul Payne have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Bamford, Tony Poustie, Paul Androvic, and Paul Payne consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.(Return to top of page)