Exploration Licence 3262 Sandstone JV is one of eight ELs forming a project group in the vicinity of Dominion Mining's Challenger gold mine, all of which are presently being explored for satellite gold deposits that may eventually be exploited to feed the main Challenger ore processing and refining mill. Known Archaean bedrock gold mineralisation at the Campfire Bore prospect, originally discovered in 1997 by RAB drilling of regional soil calcrete gold anomalies, has been further explored during the subject reporting period by conducting infill RAB drilling aimed at extending mineralised intercepts previously made in the oxidised zone. The earlier drilling done by Dominion at Campfire Bore (177 RAB, 25 RC, 13 aircore holes) had demonstrated that concealed gold mineralisation present there is concentrated at the crystalline basement/saprolite interface. In early August 2005, a further six inclined RAB holes for a total penetration of 360 m tested the area lying to the east of hole 96CFAR098, which had encountered 14 m @ 4.28 g/t Au from below 30 m depth. A successful intercept of 2 m @ 9.00 g/t Au was made below 37 m depth in hole 05CFAR0220, extending the mineralised zone for 25 m to the north. Although the zone still remains open towards the north-west, Dominion now thinks that the chance is low of an economic-sized gold deposit fitting into the untested portion of the prospect. During licence year 3, farminee Southern Gold commenced its evaluation work at the Golf Bore prospect, completing an IP survey and a 20 hole RC programme (these activities are described in a combined JV tenements report, held separately in Env 11460). Because the lode widths and lateral continuity of significant gold mineralisation so far drilled at Campfire Bore and also at Golf Bore are extremely variable, it will require future drilling of orientated diamond coreholes to adequately define the geometry of the deposits and allow the preparation of a reliable gold resource estimate.