article in todays age good read

http://www.theage.com.au/news/business/frogs-leg-may-give-dioro-the-hop-it-needs-to-crack-open-somevintage-penfold/2007/05/20/1179601239337.html

Frog's Leg may give Dioro the hop it needs to crack open some vintage Penfold
Barry FitzGerald
May 21, 2007
Dioro Exploration
DIORO Exploration is in line for a market re-rating now that the frustrating wait for the development of its 49 per cent-owned Frog's Leg underground gold resource is close at hand.
By normal standards, the 771,000-ounce high-grade resource at Frog's Leg would already be in production, following on from the initial open-cut development at the property on Kalgoorlie's doorstep.
But a couple of years of uncertainty caused by the previous 51 per cent owner/manager, French uranium giant Areva, on what to do with its global gold interests means that is only now that junior partner Dioro can look forward to earning decent cash flow from the resource turning out 8.3 grams of gold a tonne.
The Areva interest was eventually parked in Toronto-listed La Mancha Resources. Being Canadian rather than French means La Mancha is as keen as Dioro to make things happen at Frog's Leg.
The partners are set to announce a resource upgrade in June and while a bankable feasibility study is not due until next quarter, they have already started to assemble mining equipment and personnel ahead of a start to production in 2008.
Dioro's market capitalisation of $54 million represents a market capitalisation per ounce of gold resource that is perhaps 30 per cent shy of its market peers.
That discount reflects the years of frustration, Dioro's 49 per cent ownership of Frog's Leg, and the fact that Frog's Leg is not yet in production.
But the size of the discount can be expected to narrow once production starts. What's more, managing director Rhod Grivas, has been busy injecting some serious exploration appeal into the stock.
There is an Ashburton uranium play in there but the one Garimpeiro likes is the October 2006 deal with South Africa's Harmony on what Dioro calls the Penfold project.
In return for the issue of 45 million shares, Dioro picked up 480 square kilometres of prospective gold and nickel ground some 12 kilometres from Kambalda.
The ground contains about 80 kilometres of the Zuleika and Boulder/Lefroy shear zones and about 30 per cent of it is of the old freehold ''Locations" type, where there is no minimum exploration spend.
The big Location status partly explains why what should be one heavily drilled part of the world has only been lightly touched. In the past two decades, the ground has also been held by gold-focused explorers, leaving the nickel potential lightly touched.
Dioro is holding $11.7 million in cash. A chunk of that is earmarked for Frog's Leg but there is plenty left to give Penfold a good hit. Drilling will kick off on priority gold targets next month.
Dioro closed a shade weaker on Friday at 8.1¢. While it has 680 million shares on issue, its top three shareholders (LinQ, Harmony and La Mancha) account for close to 20 per cent of the stock.

As always, DYOR