stellar first up diamond results for frogs legs

8 August 2006
AUSTRALIAN STOCK EXCHANGE LIMITED
STELLAR FIRST UP DIAMOND RESULTS FOR FROG’S LEGS
Highlights
• The Mist lode continues to deliver spectacular results outside the resource envelope.
• Significant new deep extensional diamond assay results include:
�� 5m @ 20.68g/t Au from 511m (including 2m @ 49.92/t)
• Significant new strike extensional diamond results include:
�� 7m @ 22.28g/t Au from 371m (including 2m @ 65.96g/t)
�� 13m @ 5.33g/t Au from 393m (including 1m @ 33.78g/t)
Dioro Exploration NL ("Dioro") is pleased to report the first assay results from the diamond core drilling program underway at the Frog’s Leg deposit. The diamond drilling program was designed to test the strike and depth potential of the Mist and Rocket Lodes outside the existing resource envelope. Currently the Mist resource of 652,000 ounces makes up 75% of the total underground resource. This is set to grow with the addition of the wide high grade zones intersected both at depth and along strike to the north.
Figure 1 – Frog’s Leg schematic long projection
(showing current drilling program)
Table 1 – Frog’s Leg diamond core assay results (>2.0g/t)
Co-ordinates
Hole No.
Northing
Easting
Depth
Dip
Azimuth
Interval
(m)
Intersection
(g/t Au)
MEDD084
6596013
333671
358.5
-61
53
316 – 317
1m @ 4.21
364 – 366
2m @ 2.07
371 – 378
7m @ 22.28
Inc 371 - 373
2m @ 65.96
393 – 406
13m @ 5.33
Inc 396 – 397
1m @ 33.78
MEDD085
6595997
333647
430
-60
55
410 – 411
1m @ 2.04
MERC599D
6595843
333648
470.8
-63
50
320 - 321
1m @ 4.15
319 - 320
1m @ 9.45
MERC599DW2
6595843
333648
487
-63
50
479 – 480
1m @ 6.86
481 – 482
1m @ 14.94
508 - 509
1m @ 2.01
511 – 516
5m @ 20.68
Inc 512 – 514
2m @ 49.92
519 – 521
2m @ 4.42
540 – 552
12m @ 2.58
MERC599DW3
6595843
333648
530
-63
50
Inc 541 – 542
1m @ 11.52
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Co-ordinates
Hole No.
Northing
Easting
Depth
Dip
Azimuth
Interval
(m)
Intersection
(g/t Au)
107 - 108
1m @ 3.17
110 - 117
7m @ 1.83
122 - 123
1m @ 2.21
MERC600D
6595640
333764
576
-60
55
541 – 542
1m @ 2.14
All individual samples were analysed by Genalysis-Perth using cyanide leach by LeachWell solvent extraction, followed by flame atomic absorption spectrometry. Individual samples grading >3.0 g/t Au were subject to assay of the recovered leach tail pulps via fire assay followed by solvent extraction then flame atomic absorption spectrometry.
All core is NQ2 except MERC599DW3 which is BQ. NQ2 and BQ refer to the size (diameter) of the core.
Both holes MEDD085 and MERC599DW3 have extended the mineralization in excess of 60m beyond existing drilling. The two zones of mineralization confirmed the current interpretation of a contact zone (Mist) and a hanging wall zone (Fog) at depth. Hole MEDD084 drilled shallower than MEDD85 intersected just the projected contact position and therefore above the target zone. MERC600D drilled through the target positions but intersected only a thin lower grade vein. This may suggest a northern plunge to the Fog lode however it is too early in the drilling program to finalise the interpretation.
Holes MERC599DW2 and MERC599DW3 are sister wedge holes drilled from MERC599D to remedy drilling problems encountered in the parent hole. It should be noted that holes MERC599D and MERC599DW2 did not reach the target zone, so anomalous results noted above in these holes are located in the hangingwall of the main mineralised structure at Frog’s Leg. MERC599DW3 successfully reach the target zone.
The diamond drilling program commenced in late May – early June with two drilling rigs, one drilling the northern extent of Mist and the other drilling at depth. The program is still underway and some holes have been drilled to test the depth and strike extent of Rocket. The drilling was originally planned as a contiguous two stage program pending approval, now the total $2.5 million program has been approved. As reported last week further additional funds have been allocated by the joint venture to follow up the excellent near surface reverse circulation results.
Yours faithfully
DIORO EXPLORATION NL
RHOD GRIVAS
Managing Director
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information provided by Mines and Resources Australia Pty Ltd and compiled by Mr R Grivas, MAIG, MAusIMM an employee of Goodheart Pty Ltd. Mr Grivas 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 Reserves. Mr Grivas consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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