Shirl Deeps and Mt Marion West drilling shows promise



    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION THROUGH A
    U.S. NEWSWIRE SERVICE/

    ASX:DIO

    
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    Highlights

    -  First results from resource development drilling programmes at the
       Shirl Deeps and Mt Marion West Prospects.

    -  Diamond drilling at Shirl Deeps returned significant intercepts
       outside of the current 99,000oz resource boundaries. Results include:

       -  9.5m @ 19.2g/t from 236m

       -  1.0m @ 36.4g/t from 350.4m

    -  Intersection of Shirl West mineralisation:

       -  7.3m @ 4.0g/t from 96m

    -  RC drilling at Mt Marion West confirms the geological up-plunge
       extensions targeted through interpretation of underground mining data.
       Results include:

       -  11m @ 5.0g/t from 57m

       -  10m @ 4.4g/t from 79m

       -  11m @ 4.6g/t from 108m

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    PERTH, Western Australia, June 30 /CNW/ - Dioro Exploration NL ("Dioro"
or "the company") is pleased to release this exploration update, summarising
some of the resource development activities that have been undertaken to date
on the South Kal Project.
    The South Kal Project is located near Kalgoorlie in Western Australia
approximately 50km from the company's 49% owned Frog's Leg gold mine. The
South Kal Project includes the operating 1.2mtpa Jubilee mill, three years of
reserves at current production rates and a measured and indicated resource
inventory of approximately 1.55 million ounces of gold. In addition the assets
include a large highly prospective tenement package covering an area in excess
of 1100 km2 (refer Fig 1).

    To view Figure 1, Project location showing major current Resource
Development targets, please visit:
http://files.newswire.ca/724/DioroFiguresandTables.pdf.

    Shirl Deeps Prospect
    --------------------
    The Shirl deposit was discovered during fiscal 2006 and is located
approximately 10km ESE of Coolgardie on the mineral freehold Hampton East
Location 59. The deposit is adjacent to the historic Barbara-Surprise mining
centre, which has historically produced in excess of 250,000ozs from both
underground and open pit mines. The discovery was located approximately 300m
from the Surprise mine, in an area previously explored but covered with a thin
transported overburden. Mining was completed at the Shirl open pit in
January 2008, with the deposit yielding approximately 65,000ozs over the life
of mine.
    Mineralisation at the Shirl deposit is centred on two gold bearing
structures, the Main and Cross lodes (see figure 2). Both structures are
hosted within a differentiated gabbroic sill. The Main lode, which was the
focus of the majority of the open pit mining reserve, consists of a brittle
fault zone within the gabbro sequence, and averages up to 25m in true width.
The Cross lode, was only truly identified within the bedrock sequence once
mining had begun. The structure consists of a narrow cross-cutting shear zone,
which is typically highly altered.
    Two late stage, flat lying felsic intrusives successfully stope out the
ore zone, with the lower of the two forming the base of the Shirl open pit
(see figure 3). Drilling of the ore zone beneath this lower intrusive has been
undertaken in the past to delineate potentially exploitable ore-zones by
underground methods. Prior to Dioro taking control of the South Kal
Operations, diamond drilling had successfully identified the Main lode to a
depth of approximately 350m below surface, as well as limited testing of the
Cross lode. A JORC compliant Indicated resource of 99,000ozs was calculated
for the Main lode, with an Inferred resource of 47,000ozs including both some
Main lode and Cross lode mineralisation.
    The current drill programme at Shirl Deeps has been undertaken to both
increase the data density and confidence in the Main lode width and tenor of
grade at depth, as well as to scope the extent of high grade mineralisation
contained within the Cross lode structure at depth. The Cross lode structure
was also targeted within the footwall of the overall sequence, with no
previous drill testing having been undertaken on the target.
    Results to date have been extremely encouraging; with high grade
mineralisation intercepted on both the Main and Cross lodes outside of the
existing resource areas (see figures 4 and 5). Additionally, the continuation
of the cross lode structure within the footwall sequence has been confirmed,
with hole SHDD033 intersecting the structure with abundant visible gold (see
figure 6). This intercept has also confirmed the existence of a fault along
the southern margin of the deposit, which potentially could have offset the
orebody beyond the extent of current drilling at the prospect (see figure 2).

    
    Significant results include:

    -  9.5m @ 19.2g/t from 236m (Oblique, Main Lode - SHDD031)

    -  3.8m @ 5.7g/t from 218m and 7.0m @ 4.6g/t from 232m (Oblique,
       Main Lode - SHDD032)

    -  0.96m @ 38.1g/t from 350.4m (Cross lode - SHDD033)

    -  3.5m @ 6.5g/t from 399.9m (Cross lode - SHDD031)

    Additionally, mineralisation has been intersected in the pre-collar to
hole SHDD025, which aligns with a postulated hangingwall repetition to the
Shirl Main Lode, known as Shirl West (see figure 3). The intercept in hole
SHDD025 at Shirl West is:

    -  7.3m @ 4.0g/t from 96m (SHDD025)
    

    A full listing of significant results intercepted during the current
drilling campaign is contained in Appendix 1.
    Further drilling is planned to commence in late June, with the completion
of the initial programme, and potential testing of a faulted offset of the
orebody.

    To view Figure 2, Schematic plan of the Shirl Deposit and major
controlling structures, East Location 59, Coolgardie, please visit:
http://files.newswire.ca/724/DioroFiguresandTables.pdf.

    To view Figure 3, Schematic Cross section representing Main Lode and
Shirl West mineralisation and previous drilling at Shirl Deeps, please visit:
http://files.newswire.ca/724/DioroFiguresandTables.pdf.

    To view Figure 4, Longitudinal Section, Main Lode mineralisation, drill
results and current resource outline, Shirl Deeps, please visit:
http://files.newswire.ca/724/DioroFiguresandTables.pdf.

    To view Figure 5, Longitudinal Section, Cross Lode mineralisation, drill
results and current resource outline, Shirl Deeps, please visit:
http://files.newswire.ca/724/DioroFiguresandTables.pdf.

    To view Figure 6, SHDD033, Cross lode structure with visible gold
mineralisation. Intercept returned 0.96m @ 38.1g/t from 350.4m downhole,
please visit: http://files.newswire.ca/724/DioroFiguresandTables.pdf.

    Mt Marion West
    --------------
    The Mt Marion West lodes (adjacent to the +1.2Moz Ghost Crab/Mt Marion
deposit), are located on M15/717, which is 100% owned by Dioro Exploration NL.
The lodes were discovered in 2003 by underground near mine exploration
methods, and were subsequently mined as part of the Mt Marion underground
operation until closure in 2007. Previous attempts at delineating up-plunge
extensions to the underground developed lodes had proved unsuccessful.
    Following closure of the Mt Marion operation, reinterpretation of the
geological data collected during mining postulated a steeper plunge to that on
the Mt Marion deposit, and as such, the near surface expressions of the
mineralisation had not been tested (see figure 7). A small RC drilling
campaign in mid 2007 returned anomalous results from favourable stratigraphic
positions, but no further work proceeded.
    Since taking control of the South Kal Operation in December 2007, Dioro
have undertaken two RC drilling campaigns on a nominal 25m x 20m grid, to
follow up on the anomalous results and testing of the favourable "Lode Gneiss"
geological formation intercepted. These two programmes have been successful in
delineating significant mineralisation at the Mt Marion West prospect. Figure
8 illustrates the mineralisation delineated on section 8275mE. Significant
intercepts returned to date include:

    
    -  13m @ 2.0g/t from 77m downhole (MWRC023)

    -  11m @ 5.0g/t from 57m downhole (MWRC027)

    -  13m @ 2.3g/t from 102m downhole (MWRC028)

    -  10m @ 4.4g/t from 79m downhole (MWRC029)

    -  11m @ 4.6g/t from 108m downhole (MWRC030)
    

    A full listing of significant results intercepted during the current
drilling campaign is contained in Appendix 2.
    Work will now commence on a preliminary resource estimation to be used in
an initial open pit mining scoping study. Should the results of these studies
be positive, further drilling will be undertaken to adequately delineate and
estimate the extent of mineralisation at Mt Marion West.

    To view Figure 7, Schematic Longitudinal Section, Mt Marion/Ghost Crab
and Mt Marion West deposits, with previous drilling and plunge interpretation,
please visit: http://files.newswire.ca/724/DioroFiguresandTables.pdf.

    To view Figure 8, Mt Marion West Prospect, Schematic Cross-section
8275mE, please visit: http://files.newswire.ca/724/DioroFiguresandTables.pdf.

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    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. 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.

    Caution Regarding Forward-Looking Statements: The forward-looking
    statements made in this release are based on assumptions and judgments of
    management regarding future events and results. Such forward-looking
    statements, including but not limited to those with respect to the
    operations at the company's South Kal and Penfold's project and the
    Frog's Leg joint venture and the company's capital expenditures and
    expected future production involve known and unknown risks and
    uncertainties which may cause the actual results, performance or
    achievements of the company to be materially different from any
    anticipated future results, performance or achievements expressed or
    implied by such forward-looking statements. Such factors include, among
    other things, the actual market prices of gold, the actual results of
    current exploration, the actual results of future mining, processing and
    development activities, changes in project parameters as plans continue
    to be evaluated, as well as those factors disclosed in the company's
    public documents.

    Currency; Unless otherwise noted, all figures in this news release are
    expressed in Australian Dollars.
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    To view Appendix 1 - Intercept Table, Shirl Deeps Prospect, please visit:
http://files.newswire.ca/724/DioroFiguresandTables.pdf.

    To view Appendix 2 - Intercept Table, Mt Marion West Prospect, please
visit: http://files.newswire.ca/724/DioroFiguresandTables.pdf.





For further information:

For further information: Rhod Grivas, Managing Director, Dioro
Exploration, Ph: +61 8 9389 8799; Peter Harris, Professional Public Relations,
Ph: +61 8 9388 0944

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DIORO EXPLORATION NL

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