Dominion Gold Operations applied for PACE Initiative Year 2 funding from PIRSA in 2005 to assist with the drilling of a deep diamond hole at its Challenger gold mine. The hole 'Wildcat 2' (05CDDH0072) aimed to test for the continuation of the M1 ore shoot at a vertical depth of 700 m, and if successful, would thus demonstrate a large increase in the potential Challenger deposit size, besides highlighting the regional gold potential of this part of the Gawler Craton. The PACE application for $100,000 was approved, and hole 05CDDH0072 was commenced on 27 May 2005 and completed on 16 June 2005. The drilling clearly demonstrated the continuation of the M1 lode structure at depth, with the intersection in drill cores of subeconomic but visible gold and typical host rock veining and sulphide mineralisation. After completion of Wildcat 2 at a total depth of 843 m, and following completion of another two wedged-off holes (05CDDH0072W1 and 05CDDH0072W2) which were also PACE funded and which better confirmed the oreshoot continuity, Dominion also drilled two infill diamond coreholes (05CDDH0070 and 05CDDH0071) from the surface, but in the opposite trajectory direction, to intersect untested updip portions of the M1 shoot at lesser vertical depths respectively of 450 m and 500 m. These holes also demonstrated the excellent continuity of the M1 shoot, returning intersections of 35 m @ 10.7 g/t gold and 26 m @ 12.5 g/t gold respectively, thus illustrating the benefit of blind drilling from the more risk-favourable southerly direction. The drilling results have enabled this deeper part of the M1 resource to be upgraded to Indicated status and, subsequently, have underpinned a significant increase in the M1 gold reserves. The wide intersections reflect the interpreted width of the M1 shoot. The fact that both the sidetracked and infill holes were able to intersect the shoot at exactly the interpreted position demonstrates not only the continuity of the shoot geometry but also the consistency of the shoot's plunge. The endowment of the Challenger gold deposit based on past production and current reserves/resources as mapped from underground mine drillholes is well over 0.5 million ounces. As this figure only includes ore in the M1 shoot to a vertical depth of 600 m, and ore in other shoots (which are likely to be significant contributors to reserves) to only 220 m vertical depth, the realistic endowment potential is likely to get close to, and maybe exceed, 1 million ounces.