Geat news!A month early, we have our first gold pour from the...

Geat news!

A month early, we have our first gold pour from the Frog's legs deposit.

Australian gold producer Dioro Exploration NL (ASX/TSX: DIO) and its
Canadian joint venture partner La Mancha Resources Inc. today poured the
first gold from ore mined underground at its Frog’s Leg project near Kalgoorlie
in Western Australia.
The gold pour marked the return to production of the Frog’s Leg mine (49%
owned by Dioro) which produced 112,000 oz from the open pit in 2004/05.
The ore is part of a 100,000 tonne parcel of mainly development ore from
Frog’s Leg which is being processed at Dioro’s 100%-owned Jubilee mill over
the next two months.
In addition to the gold pour there have been other significant developments at
the Frog’s Leg mine:
- The Rocket and Mist declines have reached depths of 3000 metres of
development in total. In addition to the declines, development is now
taking place on 3 horizontal mining levels. Wherever the mineralization
has been exposed to date, orebody widths and grades are in
accordance with what was predicted by the resource model.
- The increase in the number of available mining faces enables the pace
of development to be accelerated. In order to achieve this increase in
productivity:
• A third jumbo drill has been commissioned to increase underground
development rates;
• A second underground truck is increasing haulage capacity;
- Power-line infrastructure and connection to mains power is nearing
completion.
The Frog’s Leg mine is forecast to produce an average of 83,000 oz of gold
per annum from its underground operations over the next seven years, based
on reserves of 3.65 million tonnes at 5.29 g/t Au (JORC Compliant Ore
Reserve of 622,000 oz.)
This reserve does not take into account additional resources calculated in the
March 2008 upgrade. The March resource estimates added 267,000 (37%increase) to the measured and indicated category increasing the total
measured and indicated resources to 990,000 oz.
Dioro owns 49% of the Frog’s Leg deposit with the remaining 51% held by La
Mancha Resources Australia, a subsidiary of La Mancha Resources Inc, a
Toronto listed company.
Dioro’s Managing Director Rhod Grivas said the gold pour marked a
significant milestone for the Frog’s Leg project.
“In addition, the ability to mill this ore at Dioro’s low cost mill further reinforces
the company’s growth strategy, whose most recent component was the
acquisition of the South Kalgoorlie Project which included the Jubilee mill,” Mr
Grivas said.
“Frog’s Leg is a terrific asset for Dioro because it provides us with long-life
high-grade feed into the blend of ores processed in the Jubilee mill. The
ownership of both these assets improves the viability of each project and
enhances the overall profitability of Dioro as a whole.
“Jubilee is a valuable asset in its own right because it is close to Kalgoorlie
and has grid power allocations, therefore not requiring high cost diesel
generated power. It is close to a number of other gold projects in the area.”