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PERTH, WESTERN AUSTRALIA, Sept. 24 /CNW/ - Dioro Exploration NL wishes to
advise there has been a wall failure at the Mt Marion pit where the company is
extracting the remnant crown pillar. In excess of 125,000 bank cubic metres
(bcm) of soft overburden material has slipped from the upper portions of the
pit wall. This has temporarily prevented access to approximately 13,000 ounces
of gold contained in blasted broken ore stocks at an average grade of 4.5g/t
Au at the bottom of the pit.
It is anticipated that that remediation of the slip and making the pit
walls safe for re-entry will delay gold production from this pit by
approximately 2 months. Initial analysis indicates that none of the ore
reserves temporarily affected by this event have been sterilized.
Remediation work to clear the access ramp has already commenced. The
Jubilee mill will be fed with Frog's Leg ore and a higher proportion of lower
grade material from the HBJ pit whilst the remediation work is being completed
and access to the ore is re-established. This will have consequential short
term negative effects on the company's gold production and cash flows.
On 26 August 2008 Dioro advised that it was anticipating total production
of 9,000 ounces per month for the months of September to December from a
combination of Frog's Leg, HBJ and Mt Marion ore sources. As a result of the
delayed access to the crown pillar at Mt Marion, production for the months of
September, October and November is now expected to be approximately 7,000
ounces per month. Production will increase later in the calendar year when
access has been re-established and the estimate of 90 000 ounces of gold
production for the company for the 2009 year has not been affected.
Mining operations at Dioro's 100% owned HBJ pit, and development and
stoping at the 49% owned Frog's Leg underground mine are continuing normally.
The company is now trucking its share of ore production from Frog's Leg and
processing it at its 100% owned Jubilee Mill.
Dioro is a dual listed (ASX and TSX) (Code DIO) Australian gold producer
with attributable Ore Reserves of 533,000 ounces and Measured and Indicated
resources in excess of 2,000,000 ounces. Dioro owns the 1.2Mtpa Jubilee
processing facility that is located 30km from Kalgoorlie, Western Australia,
with all attributable resources and reserves located within 50km of the
Dioro has 1500 square kilometres of prime exploration acreage. Dioro also
has exposure to uranium exploration in Western Australia with Vale spending
A$4 million to earn a 60% interest in the Kunderong Uranium project.
The information in this report that relates to Exploration Results,
Mineral Resources and/or Ore Reserves is based on information provided by Mark
Cossom MAusIMM and Mark Pitt FAusIMM, employees of Dioro Exploration NL and
compiled by Mr R Grivas, MAIG, MAusIMM an employee of Dioro Exploration NL. Mr
Grivas, Mr Cossom and Mr Pitt have sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined
in the 2004 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves, and each is a "Qualified Person"
for the purposes of Canadian National Instrument 43-101. Mr Grivas, Mr Cossom
and Mr Pitt consent to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
For further information:
For further information: Rhod Grivas, Managing Director, Dioro
Exploration NL, Ph: +61 8 9389 8799; David Tasker, Allan Francis, Professional
Public Relations, Ph: +61 8 9388 094