1st gold poured turns producer, page-2

First gold pour: Dioro

Lorna Seatter
Monday, January 21, 2008

PERTH-based Dioro has taken advantage of record gold prices with its first gold pour of 5678oz from its South Kalgoorlie project last month in Western Australia.

Last month's gold pour of 5678oz was sold on the spot market for an average price of $A942.32 per ounce, less than a month after Dioro took operational control and ownership of the project.

Dioro acquired a suite of assets comprising 1100 square kilometres, including the project, from Harmony for $A45 million including a cash payment of $25 million and 11.43 million ordinary Dioro shares.

Included in the transaction was the operating 1.2 million tonne per annum Jubilee mill at South Kalgoorlie, and measured and indicated resources of about 1.55 million oz of contained gold.

At the beginning of July last year, the South Kalgoorlie project had total JORC-compliant proved probable reserves of 4.24Mt at 1.7 grams per tonne gold for 236,000oz.

Dioro estimates South Kalgoorlie will bring $55 million in cash after capital expenditure over four years, taking into account an average gold price of $A862 per oz and metallurgical recovery rates of 90.8%.

South Kalgoorlie is near Dioro's 48% owned Frog's Leg mine, which is expected to produce about 3.65Mt at 5.29gpt gold for 622,000oz gold.

"With South Kalgoorlie and Frog's Leg primarily in capital development phases, we are greatly looking forward to steady increases in gold production," Dioro managing director Rhod Grivas said.

Dioro has planned a Toronto Securities Exchange debut for next month

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