NEW YORK, June 2 2009 / -- Dominion Minerals Corporation (OTC BB: DMNM) (“Dominion” or the “Company”) Chairman’s Letter to Shareholders is reproduced below:

Dear Dominion Shareholder,

 

To ensure that you remain well informed of our progress, as the Chairman & Chief Executive Officer of Dominion Minerals Corp, I would like to provide you with the following update which outlines Dominion's recent achievements, major highlights and key near-term objectives.  The Board and I plan to provide you with regular communications going forward.

 

 

On April 20, 2009 Dominion announced that it had purchased Cuprum Resources Corp., the Company that owns 100% of the Cerro Chorcha Concession, from Bellhaven Copper & Gold, Inc., thereby acquiring 100% of the Cerro Chorcha Copper Project for a sum of US$2,500,000 and 6 million shares of Dominion common stock.

We believe that this purchase will be accretive to Dominion and is likely to create significant value for our shareholders in the future.

 

 

In September 2008 a new NI 43-101 compliant technical report and mineral resource estimate was released showing a substantial increase of the resource estimates at Cerro Chorcha. Based on the new resource estimate, Cerro Chorcha’s porphyry copper deposit hosts an Indicated and Inferred mineral resource of 201.9 million tonnes at higher copper and gold grades which is higher than previously reported using the same 0.2% Cu cut-off grade. Overall, the resource upgrade represents:

 

Importantly, the updated NI 43-101 report also confirmed that the presence of a large area hosting high-grade copper-gold-silver mineralization in the central portion of Cerro Chorcha has been confirmed. This high-grade zone 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, in addition, an Inferred mineral resource of 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. The mineralization remains open at depth and in multiple directions, and all holes drilled to date appear to indicate potential for the significant extension of the high-grade zone. This will be investigated further in our 2009 drilling campaign comprising 26 holes over a total of 10,300 meters.  Included in our planned 2009 campaign will be an area of deep drilling consisting of 13 holes totalling c. 6,550 meters.

 

The NI 43-101 report also confirmed that Cerro Chorcha gold grades can be significant and tend to correlate well with high-grade copper mineralization. Gold values were consistently assayed for in all drill holes. Previous trench results returned average grades of 0.66 g/t Gold and 9.72 g/t Silver over a trench length of 585 meters. Considering the meaningful intersects encountered at several holes drilled to date, Dominion believes copper and gold grades may increase as the high-grade zone is explored at further depth.

 

 

Preparation is now complete and the drilling equipment is on site to begin the 2009 drilling campaign.  There will be a total of 26 holes over a total of 10,300 meters drilled.  Additional capital is now required by the Company in order to proceed and complete this drilling campaign. This drilling campaign has three principal objectives:

 

Dominion believes that this phase of the Drilling Program will allow for an upgrade and significant increase of the mineral resource in the High-Grade Zone which currently remains open at depth and in multiple directions. The High-Grade Zone could then be large enough to represent a mineable deposit in its own right, with very attractive economics as a stand-alone mine. Meanwhile the remainder of the large Cerro Chorcha concession can be developed in parallel.

Following the completion of the 2009 drilling campaign in Q4 2009 we anticipate  an updated NI 43-101 resource estimate (by SRK) to be published.

 

 

The Company has applied to list on the TSX Venture Exchange (TSX-V). We are in the final phase of our listing application process and hope to be listed on the TSX-V in Q3 2009.

 

The TSX Venture Exchange is Canada’s premier equity markets tailored to small and mid-cap companies.

 

The Canadian Capital Markets operate within a world class financial services environment and are traded during North American business hours by a vibrant institutional and retail investor base.

 

In parallel to preparing the 2009 drilling program, Dominion has over the past months also commenced initial preparations for a Pre-Feasibility Study (PFS). In this context, Dominion has entered into discussions with several world-class consulting companies with a strong presence in South America. During the early part of 2009, it is expected that 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, will be selected. 

These companies have all committed to carry out the PFS and work with us in the development of the project. We have received written proposals from them for the work required. The time line given to complete the PFS approximately 9 months from the commencement date.

 

On the infrastructure side, Cerro Chorcha has certain distinct advantages over other projects of its size and scale. For example, Cerro Chorcha has a port nearby, access to a hydro-electric plant in the vicinity of the deposit, access to water readily available and major roads in and around the concession. As a result, the combination of limited capital being required for major infrastructure build-out, and the unique benefits of the High-grade zone put Cerro Chorcha, a prize asset in Panama, an attractive and democratic economy, into a position where it can continue to be developed at maximum pace even in less certain times for development companies in the natural resources sector.

 

 

I remain more convinced than ever of the extraordinary opportunities before us. The Dominion team has continued to work tirelessly towards proving up an economically viable copper/gold project that we anticipate will create enormous future shareholder value. We remain on target to achieve our key milestones.

I continue to be impressed by the scope of the opportunity we have before us and by the compelling nature of our ownership position of Cerro Chorcha. The exceptional depth of talent that we have assembled within our company and that we continue to add to the Management team remains critical to attaining our goals.

We have much work ahead of us, but I believe that we are in a very strong position to capitalize on our opportunity as we continue on the path ahead.

Thank you for your continued solid support, particularly in this very challenging market.

Yours sincerely,

Pini Althaus

 

Dominion Minerals                                                       

Pini Althaus, Chairman & CEO                                     

Tel: +1 212 231-8171                                                     

Email: pini@dominionminerals.com                               

About Dominion Minerals Corp.

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

 

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

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 atwww.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.