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October 13, 2008
Cerro Chorcha - Project Update

HIGHLIGHTS

  • Dominion and Bellhaven Sign 10,000 Meter Drilling Contract with Extripasa
  • Extripasa hired under a full service contract
  • Drilling strategy for 2008/09 campaign finalised
  • Preparation of 2009 Pre-Feasibility Study has commenced
  • Expanded management team and new local office in Panama

NEW YORK, Oct. 13 /PRNewswire-FirstCall/ -- Dominion Minerals Corporation (OTC Bulletin Board: DMNM - News; "Dominion" or the "Company") and Bellhaven Copper & Gold Inc. ("Bellhaven", and together with Dominion the "JV Partners"), are pleased to provide herewith a progress update for the development of the Cerro Chorcha project in Panama.

Dominion and Bellhaven Sign 10,000 Meter Drilling Contract with Extripasa

Dominion and Bellhaven have signed a drilling contract with Exploraciones y Triturados del Pacifico, S.A. de C.V. ("Extripasa") of Mexico. As part of this contract, Extripasa will conduct 10,300 meters of diamond drilling across 26 holes using two large (LF-90) drill rigs. The drilling campaign has three main objectives: to delineate the recently confirmed high-grade zone at depth; to test the extent of the high-grade mineralization laterally; to explore untested promising targets within the Cerro Chorcha concession which lie adjacent to the known high-grade mineralization (see below). Extripasa agreed to be paid on a cost-per-meter-drilled basis.

Extripasa hired under a full service contract

Throughout the drilling campaign, Extripasa will also act as turn-key contractor providing ancillary items and services, including two large helicopters, construction of helipads, transportation of all equipments and personnel, fuel, personnel for the camp, management of the camp and Cerro Chorcha site, transportation of core to the labs and additional incidentals. Extripasa's performance under the contract will be overseen by Dominion and Bellhaven personnel in Panama.

Drilling strategy for 2008/09 campaign finalised

The updated NI 43-101 technical report (press release September 4, 2008) confirmed the presence of a large area hosting high-grade copper-gold-silver mineralization in the central portion of Cerro Chorcha. (The report confirms that the high-grade zone alone already has an Indicated mineral resource of 24.1 million tonnes grading 0.97% copper, 0.16 g/t gold and 3.1 g/t silver, and an Inferred mineral resource of further 13.3 million tonnes grading 0.86% copper, 0.16 g/t gold and 3.2 g/t silver, using a 0.65% copper cut-off grade, and that the mineralization remains open at depth and in multiple directions.)

In line with the independent recommendations contained in this report, the 2008/2009 drilling program has three principal objectives:

  • High grade zone - deep drilling: All holes drilled to date (vertical depth of 230 meters), appear to indicate potential for the significant extension of the high-grade zone at further depth. This potential will be further investigated in a deep drilling campaign (up to 600 meters depth) consisting of 13 holes totalling approximately 6,550 meters within the high-grade zone alone.
  • Step-out drilling - A "step-out" drill program of 9 holes totalling 2,850 meters to further expand and define the high-grade mineralization at Chorcha which remains open in almost every direction.
  • Promising drill targets - Based on geological, geochemical and aeromagnetic data, several anomalous target areas within Cerro Chorcha remain untested which are adjacent to known high-grade mineralized areas. The JV Partners wish to investigate those as part of this drilling campaign in a targeted exercise comprising 4 holes, totalling 1,000 meters.

Preparation of 2009 Pre-Feasibility Study has commenced

In parallel to preparing the imminent drilling program, the JV Partners have over the past two months also commenced initial preparations for a Pre-Feasibility Study. In this context, the JV Partners entered into discussions with several world-class consulting companies with a strong presence in South America. During the remainder of 2008, the JV Partners expect to select the preferred consultants for several key workstreams, including assay laboratories, metallurgical test work (flotation), ore resource calculation, mine planning and an environmental base line study.

Expanded management team and new local presence in Panama City

Dominion has expanded its management team and hired David Cadwell as Chief Geologist based in Panama. Mr. Cadwell brings a wealth of experience to Dominion, having held management positions within leading mining companies including Asarco, Gold Fields, Anaconda, Northern Peru and Outokumpu for c. 40 years. Mr. Cadwell's vast experience is directly relevant to Cerro Chorcha, given that Mr. Cadwell spent the majority of his career overseeing porphyry copper deposits in Latin America. Mr. Cadwell joins Dominion just as the Chorcha 2008/2009 drilling campaign is about to commence.

Dominion is also pleased to announce that, following the relocation of Jim Gorman to Panama this summer, the recent addition of David Cadwell and the hiring of local staff, the Company has expanded its local presence and opened a new office in Panama City.

Drilling campaign and Pre-Feasibility Study - timetable

The 2008/09 drilling campaign is, as expected, due to start this month and expected to complete by March 2009. Following the completion of this drilling campaign, an updated NI 43-101 resource estimate is expected to be published in Q2 2009 and a Pre-Feasibility Study should be completed by the end of 2009.

For further information from Dominion please contact:

Dominion Minerals Corp

Pini Althaus, Chairman & CEO

Tel: +1 212 231-8171

Email: pini@dominionminerals.com

About Dominion Minerals Corp. and Cerro Chorcha

Dominion Minerals Corp. is a US-based copper and gold exploration and development company focused primarily on its Cerro Chorcha Project in Panama.

Cerro Chorcha is a large porphyry copper, gold, silver project located in the Chiriqui and Bocas Del Toro Provinces. Overall, the project hosts an Indicated mineral resource of 117.4 million tonnes grading 0.51% Cu, 0.07 g/t Au and 1.7 g/t Ag, and, in addition, an Inferred mineral resource of further 84.5 million tonnes grading 0.46% Cu, 0.07 g/t Au and 1.9 g/t Ag (using a 0.2% Cu cut-off grade). This represents total in-situ metal of 2.17 billion lbs of Copper, 449,000 oz. of Gold and 11.58 million oz. of Silver. The high-grade zone described above is located in the central portion of the concession and has been singled out using a 0.65% Cu cut-off grade.

For more information please visit http://www.dominionminerals.com/

About Extripasa

Extripasa was founded in 1955 in the city of Chihuhua, Mexico to support the growing mining industry. Extripasa offers its clients a variety of drilling services (including surface and underground coring, directional, reverse circulation and geotechnical drilling), infrastructure services such as access roads and provides expertise and a range of services in connection with mining projects ranging from discovery through to resource definition, extraction and advanced stage mining.

Forward-Looking Statement Disclaimer

This press release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address continuing to Canada, exchange listing application, additional financing, seeking and acquiring new projects and gaining recognition are forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, the market price of gold, general economic conditions, market and business conditions, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to the Company's plans at its mineral properties, the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal recoveries, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, failure to obtain adequate financing on a timely basis, the effect of hedging activities, including margin limits and margin calls, regulatory restrictions, including environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees.

Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. In addition, the Company's business and operations are subject to the risks set forth in the Company's most recent Form 10-KSB, Form 10-QSB and other SEC filings which are available through EDGAR at http://www.sec.gov/. These are among the primary risks we foresee at the present time. The Company assumes no obligation to update the forward-looking statements.

 

 

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