what a disaster, page-3

Alanab, here is an extract of the latest Fat Prophet analysis on DIO - I agree with a previous posting, it doesn't smell right, don't know if rising costs and market sentiment can explain such a fall (from $2.50 down to $0.60 in 10 months !!!).

" Unlike many other projects in Western Australia, the Varanus Island gas explosion did not affect Dioro Exploration. However, like all miners, Dioro is facing rising operating costs. And the stock’s position at the smaller end of the sector is also weighing on sentiment as investors seek the relative safety of larger, less risky producers.

Nevertheless, the company continues to make good progress in their development towards becoming a mid-tier gold producer. As Members may recall, the company hold a 49% interest in the Frog’s Leg joint venture, with majority partner La Mancha Resources.

The JV partners poured first gold at the Frog’s Leg underground mine in mid-May. Furthermore, the Frog’s Leg resource expanded to a total of 990,000 ounces during the May quarter and additional resource upgrades are likely in the months ahead.

This is in addition to the 1.55 million ounce gold resource of Dioro’s 100% owned South Kalgoorlie assets. Dioro acquired the South Kalgoorlie assets from Harmony Gold last year. The acquisition took Dioro to producer status and brought more than 1,100 square kilometres of highly prospective tenements into Dioro’s portfolio.

Although exploration is still in the early stages, the company recently released very positive drilling results from the Shirl Deeps and Mt Marion West tenements. The results indicate the likelihood of future resource upgrades at South Kalgoorlie and an extension of operations beyond current expectations of a cessation in 2012.

From a purely fundamental perspective, Dioro’s share price attributes very little value to the potential upside offered by the company’s extensive exploration tenements. However, given the current level of market volatility and the potential for further weakness, we do not recommend Members increase their exposure at this time."