Mineral explorer Dominion Mining Ltd has entered into an option agreement with South Australian gold, nickel and base metal mineral explorer Southern Gold Ltd.
The agreement is to develop a gold only joint venture on Dominion's exploration licences around the Challenger Gold Mine in South Australia.
The joint venture includes the Golf Bore 54,000oz gold Resource (indicated plus inferred).
Southern Gold will issue Dominion with 250,000 fully paid shares to earn the exclusive right, for a three month period, to conduct due diligence on the advanced exploration gold prospects and gold resources and formalise exploration and development agreements.
The package of tenements includes eight exploration licences in the Challenger region covering 3000km on the Gawler Craton.
Dominion's Challenger gold mine produced 29,280 oz at $258oz during the December 2005 quarter and had reserves of 292,00oz as of 31st December 2005.
The agreement excludes the area immediately surrounding the Challenger mine on EL 3270 which is subject to Dominion's own near-mine exploration activities.
