DIO 0.00% $1.27 dioro exploration nl

this might get a few more punters on board

  1. 91 Posts.
    Article from The Australian...

    "IT IS not just because Daily Assay is fond of Kalgoorlie that we bring you this report on Dioro Exploration. No, it is because Dioro is a battler with a good story to tell.
    Dioro today revealed a 95 per cent jump in the indicated gold resource for its Frog's Leg project near the Western Australian city of skimpies and gold bars.

    Dioro holds a minority 49 per cent interest in the project with the rest held by Canadian mob, La Mancha Resources.

    Measured and indicated resources at Frog's Leg now stands at 723,000 ounces of gold, up from 369,000 ounces reported to the market back in March.

    The resource upgrade, which unfortunately comes at a time of a strengthening Australian dollar against the greenback, has given the two stakeholders enough reason to start portal development for the underground mine.

    Dioro boss Rhod Grivas has always been upbeat about the potential at Frog's Leg.

    Today was his time in the sun.

    "Frog's Leg is moving from being a very good project to a great mine," Grivas said.

    "Both Dioro and La Mancha are very excited by the prospect of converting an excellent, robust resource into a very profitable underground mine while at the same time continuing to grow the known resources at the project.

    "We are very excited with the massive resource upgrade and are confident that the sharp increase in resource will have a significant impact on the profitability of the project.

    "The opening of the portal today at the project is also another significant milestone in our progress towards production."

    There's no doubt not much can rain on the Dioro parade today.

    Much of the resource upgrade can be attributed to converting the Fog and Mist ore bodies into the indicated category.

    A drilling campaign, which began in October, also saw an extra 210,000 ounces converted from the northern extents of the Frog's Leg mineralised system. A new modelling of the entire Frog's Leg system also helped Dioro and La Mancha model the resource.

    Reported resource figures have been calculated using a cut-off grade of 3.5 grams of gold per tonne.

    Moving on, Dioro and La Mancha still have about 10,000 metres of diamond drilling to complete for its 2007 campaign. Targets include the Rocket orebody and an area between Rocket and the Mist prospect.

    But even better, the partners hope to have a feasibility study completed within two months.

    Production is scheduled to start before June next year.

    "The previously completed positive pre-feasibility studies and the significant increase in resource observed since then have justified the preliminary stages of portal development inaugurated this morning," Grivas added.

    There should be a few rounds bought at one of the many bars around Kalgoorlie tonight."

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