Challenger Update - SA Explorers

Challenger Gold Mine
Rediscovering Challenger
SAEC – 26 th November 2010
Speaker: Paul Andrović
Dominion
Mining
Limited

Disclaimer
Forward Looking Statements
Some statements in this presentation regarding estimates or future events are forward looking statements.
They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward
looking statements include estimates of future production, cash and total costs per ounce of production,
reserve and mineralized material estimates, capital costs, and other estimates or prediction of future
activities. They include statements proceeded by words such as “believe,” “estimate,” “expect,” “intend,”
“will,” and similar expressions.
Actual results could differ materially depending on such things as political
events, labour relations, currency fluctuations and other general economic conditions, market prices for
Dominion Mining Limited products, timing of permits and other government approvals and requirements,
changes in operating conditions, lower than expected ore grades, unexpected ground and mining conditions,
availability and cost of materials and equipment, and risks generally inherent in the ownership and operation
of mining properties and investment in foreign countries.
Competent Persons Statement
The information in this presentation 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, members of the Australasian Institute of Mining and Metallurgy. Peter Bamford,
Tony Poustie and Paul Androvic 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 and Paul Androvic, consent to the
inclusion in the presentation of the matters based on their information in the form and context in which it
appears.

2010 Financial Year Summary
• Challenger mine
• Production of 80,570 ozs of gold
• Cash costs of A$697/oz
• Total costs of A$1,023/oz (excludes royalties of c. A$45/oz)
• Throughput for the year of 546kt – an increase of 25% from the previous year
• Completion of mill expansion to around 650ktpa
• Completion of ventilation shaft and other associated capital works
• Grade declines 33% to an average of 5.0 g/t for the year
• Significant fall in M1 gold endowment but increasing M2 gold endowment
• Corporate
• Cash and bullion decreased by $25.8 million to $19.5 million
• Dividends paid of $10 million (10 cents per share)
• Remain debt free with a robust balance sheet
A difficult year at the Challenger mine

Capital Expenditure and Exploration
• Capital projects expenditure of $15.3 million
• Vent shaft $4.6 million
• Mill expansion, thickener and ventilation fan $7.7 million
• Tailings $1.5 million
• Underground power $1.5 million
• Exploration expenditure of $8 million
• Challenger expenditure - $4 million
• Regional exploration $4 million
Major capital expenditure program is complete

Challenger Operations

Challenger Operations
Mining Fronts
• Decline currently at the 300mRL
• Approximately 900m vertical depth
• Three mining Fronts established
• M2 will contribute around 80% of total
stope tonnes
• Operations are close to steady state
with improved production since June
M2
M3
M1
Focus over remainder of calendar 2010 is on Decline development advance

Challenger Operations
Geological Recap
• A ‘leucosome hosted’ deposit related to
preferential partial melting of earlier
mineralisation
• The key to successful development has
been the understanding of the complex
structural controls of high grade gold
mineralisation
• Gold emplacement through Partial
melting into low strain positions
• Folding pre peak metamorphism then
followed by further NW-SE shortening
and extension shallowly to NE

Challenger Operations
SEZ
M3
M2
M1
1000mRL - 950mRL

Challenger Operations
950mRL - 900mRL

Challenger Operations
900mRL - 850mRL

Challenger Operations
850mRL - 800mRL

Challenger Operations
800mRL - 750mRL

Challenger Operations
750mRL - 700mRL

Challenger Operations
650mRL - 600mRL

Challenger Operations
600mRL - 550mRL

Challenger Operations
550mRL - 500mRL

Challenger Operations
500mRL - 450mRL

Challenger Operations
450mRL - 400mRL

Challenger Operations
400mRL - 350mRL

Challenger Operations
Structural changes to Shoot Geometry

Typical Level Plan showing Proposed Drives
Typical Level Plan with Developed Shoots and Targets
• Access main M2 Structural feature, S2 then open up areas towards M1 and M2 R
• Current level development plan allows greater flexibility for M2 fold geometry variations
• Allows for rescheduling of stopes if fold geometries extend and extra development is needed
M2 S2

Challenger Operations
Reconciliations M1
• Significant decline in M1 stope endowment since 480 level
• Latest levels showing high grade nature returning but volume has reduced
1,200
1,000
800
Stope ovm
Dev ovm
M1 ovm
Cum Avg
Ovm
600
400
200
0
Level

Geology
Reconciliations M2
• M2 below 400 level appears to be consolidating in both tonnes and grade
• Most levels are not fully developed and M2 ovm based upon current reconciliations
1,000
900
800
700
Stope ovm
Dev ovm
M2 ovm
Cum Avg
600
Ovm
500
400
300
200
100
0
Level

Challenger Reserves
Exploration program underway to upgrade inferred resources

Mine Area Exploration

Mine Area Exploration
Typical Level Plan with Target Shoots
• Development accessing M3 from M2 R, allows for drilling of the SEZ zone and likewise the Aminus
zone is targeted from the M1 drives
• Diamond Drilling also targeting SEZ, Hanging Wall and M1 Footwall Domains

Mine Area Exploration
Typical Level Plan with Target Shoots
• Challenger West and M1 Footwall are the primary targets for exploration development
• Proposed 250m of additional exploration development into the M1 Footwall Shoot from the existing
800 Level Exploration drive which will be a springboard into the Challenger West Shoot

Mine Area Exploration
• Challenger Deeps drilling has confirmed
continuity of M1, M2 and M3 Shoots to 1,400
metres vertical depth – a plunge continuity of
over 2.8 km
• The ‘79 Fault’ offsets the Challenger shoots
~150m

Mine Area Exploration
The ‘79 Fault’
• The decline will continue as is until the fault is approached
• The cross over will occur around the 220-180mRL

Mine Area Exploration
The 79 fault
• Current interpretation suggests that the fault is
widest within the predicted ore zone area (M2)
while being more discrete to the North and
south
• This is significant in that it will allow us to plan
infrastructure to cross the fault at its most
competent locations

Mine Area Exploration
The ‘79 Fault’
• Targeted underground drilling of the fault commenced from the 320 Level
• One of the more important finds to date was the identification of a pyroxenite ‘dyke’, 0-2m in
thickness associated with the fault structure
• It is strongly magnetic and coarse grained, cut by mafic dykes but possibly intruded at the same time
with the regional Lamprophyres
• Some early work on dating of this brittle fault was undertaken by Anthony Reid (PIRSA), at ~1,400Ma
by sampling fault gouge intersected by Diamond holes

Mine Area Exploration
320 Level – UG Drilling Strategy
• Currently have three UG LM75 rigs operating
• Primary Rig targeting the fault and subsequently Main shoots on the other side of the fault
• Second rig focused on development drilling
• Third rig on exploration and peripheral shoots

Regional Exploration

Regional Exploration
Regional exploration budget for 2011 year is unchanged at around $5 million

Gawler Craton Tenements

Labyrinth Project
The Labyrinth Project area covers a large gravity high anomaly and spatially related magnetic
high anomalies

Barton West Project
• Large (>75 sq km) area of >1% heavy
minerals identified
• Prospective Eucla Basin setting
• Close to Trans Australian Railway
line
• JV with landowners (Maralinga
people)
• Initial resource estimate of 171.7
million tonnes grading 2.8% HM
A strategically located mineral sands exploration play with considerable upside

Laos
• Applications for three tenements in Lao
PDR totalling 1,500 square kilometres
• Dominion has undertaken extensive field
research including geological mapping
and geochemistry over the last two years
• A number of targets have been identified
• Awaiting lifting of moratorium
• Expected grant in early 2011
Emerging underexplored region of Asia

Summary…
• Turning the corner after a difficult 2009/2010:
• Strong balance sheet
• Production
• Over 100,000 ounces per annum with a focus to reaching 120,000
ounces per annum
• Still generating a robust margin
• Organic growth potential at Challenger
• Resource Conversion
• Extensions to M1, M2, M3 shoots and other lodes
• Prospective exploration portfolio
• Extensive WA tenements
• Gawler Craton
• Laos projects

Agreed Transaction with Kingsgate
• Announced on 20 th October
• Dominion shareholders will hold around 24% of the combined entity
• Rationale for transaction
• Significant reduction in risk profile
• Exposure to lower cost gold open pit gold production
• Increase in attributable reserves and resources
• Exposure to prospective epithermal gold belt
• Strengthened financial platform and increased size and presence
• Ability to access additional growth opportunities
• Timetable for transaction
• Scheme documents by end of December
• Shareholders meeting at the end of January
• Implementation early February
The Kingsgate transaction is value accretive for Dominion shareholders

Webpage: www.dml.com.au