/NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION THROUGH A
U.S. NEWSWIRE SERVICE/
- Dioro confirms another increase in the measured and indicated
resource at the Frog's Leg mine.
- The increase of 60,000 ounces to 1,001,000 ounces at an average
grade of 7.0g/t.
- Majority of increase was in the highest quality category, Measured
Resource which increased by 23%.
- Reserve update to be completed in July 2009.
PERTH, Western Australia, May 12 /CNW/ - DIORO EXPLORATION NL ABN 31 009
271 532 (ASX/TSX: DIO) - Dioro Exploration NL ("Dioro" or the "Company") is
pleased to announce a further update to the resource at the 49% Dioro-owned
Frog's Leg mine. The Measured and Indicated ("M&I") resource now contains
1.001 million ounces of gold (490,500 attributable to Dioro) when allowing for
depletion due to mine production. Further growth can be expected with an
additional 192,000 ounces currently contained in the inferred category (94,000
ounces attributable to Dioro). The deposit still remains open at depth.
The resources at the Frog's Leg deposit have grown in every one of the
last three years with a 95% increase in 2007, 37% increase in 2008 and 6% so
far in 2009. In addition there has been an increase in grade of both the
measured and indicated categories lifting the average grade of total measured
and indicated resources to 7.0g/t.
An Ore Reserve update is scheduled to be completed in July 2009.
At the time of the last publication of Ore Reserves at the Frog's Leg
Mine (in December 2007) there was an 86% conversion from Measured and
Indicated Resource to Ore Reserve. It is expected that the July 2009 update
will show a similar level of conversion of resource to reserve. This will
result in a significantly enhanced mine life and aggregate life-of-mine cash
flows for the Frog's Leg mine.
The following table demonstrates the new Frog's leg resource estimate on
a 100% basis.
(Dioro owns a 49% share of the operating mine and these resources)
(inclusive of reserves) Tonnes Grade Ounces Increase
----------------------- ------ ----- ------ --------
Measured 1,189,000 7.3 279,000 23%
Indicated 3,508,000 6.8 771,000 1%
2008 mining depletion -49,000
& Indicated 4,967,000 7.0 1,001,000
Inferred 1,037,000 5.8 192,000 9%
Figures reported have been rounded to a whole number; as a result
rounding errors may occur.
Reported resource figures have been calculated using an Au cut off grade
of 3.5g/t, consistent with previously reported resource estimates.
Reported resource figures percentages are an increase over the previous
The measured and indicated resource upgrade primarily reflects the
tonnage and grade improvements from drilling in the "Gap" between the
Rocket/Whistle and Mist/Fog Lodes and the extension south of Rocket/Whistle
Lodes respectively. The resource also incorporates refinement of the lode
shapes from information gathered in the underground drive developments. All
drilling was conducted from underground.
The Frog's Leg project is located 25km west of Kalgoorlie, in the eastern
goldfields region of Western Australia and represents the southern part of the
six million ounce endowed Kundana gold field.
Dioro hold 49 per cent of the Frog's Leg deposit with the remaining 51
per cent held by La Mancha Resources Australia Pty Ltd, a subsidiary of La
Mancha Resources Inc, a Toronto listed company.
Dioro Exploration Managing Director Mr Rhod Grivas said that while this
is further proof of the continued growth of the Frog's Leg resource, he is
looking forward to the Ore Reserve update as it will add significantly more
value to shareholders.
"Frog's leg is a fantastic, robust, profitable and growing deposit which
has continued upside as it is not closed off at depth. The Reserve update will
not only incorporate the much anticipated addition of economic ounces but is
expected to show improvement in design, productivity and costs with the
inclusion of mine improvements including a paste fill plant. We are confident
that the increases in resources over the last two years will have a
significant impact on the profitability of the project"
The two underground drilling programs that were undertaken to allow for
the updated resource to occur, was under the supervision of Trevor Eddie Bsc.
(Geol.), MAusIMM, Chief Geologist, of La Mancha Australia. The underground
drill programs were conducted to industry best practice standards. Samples
utilized for the resource update comprise half NQ2 diamond drill core sampled
and assayed according to geology. Samples were assayed at SGS Laboratories in
Kalgoorlie, using a 50g Fire Assay method.
The laboratory utilized a series of sample blanks, standards and check
assays. In addition, La Mancha Australia routinely conducts check assaying
programs utilizing alternative laboratories. It also routinely conducts its
own QAQC monitoring.
The Frog's Leg geological re-interpretation was completed by La Mancha
Australia staff, the block model, including the building of the wireframes for
the model, resource estimation and classification was undertaken Trevor Eddie
Bsc. (Geol.) MAusIMM, Chief Geologist, also of La Mancha Australia. The
geostatistical work was carried out by Elizabeth Haren, Director of Haren
Consulting. The updated resource review and estimation conform to the
requirements of NI43-101 and the CIM Best Practices for Estimation of Mineral
Resources and JORC Code.
The information in this report that relates to Mineral Resources is based
on data provided by La Mancha Australia Pty Ltd and supervised by Mr Trevor
Eddie MAusIMM an employee of La Mancha Australia Pty Ltd. Mr Eddie has
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 Reserve and as "Qualified Person" for the purposes of National Instrument
43-101. Mr Eddie consents to the inclusion in the report of the matters based
on their 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 operations 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
For further information:
For further information: please contact: Rhod Grivas, Managing Director,
Dioro Exploration NL, Ph: +61 8 9389 8799; David Tasker, Professional Public
Relations, Ph: +61 8 9388 0944