Resource increase at Frog’s Leg

Dioro Exploration NL with joint venture partner La Mancha Resources Australia...

  Dioro Exploration NL with joint venture partner La Mancha Resources Australia Pty Ltd have confirmed that Measured and Indicated resource has increased by more than 95% at the Frog’s Leg gold project, located near Kalgoorlie, in Western Australia.After incorporating recent excellent drilling results the Frog’s Leg measured and indicated resource now stands at 723,000 ounces of gold, compared to 369,000 ounces of gold released to the market in March 2007. The total resource, including measured, indicated and inferred resources is now 933,000 ounces of gold.The JV partners will commence portal development at the underground gold mine after forming the view the Frog’s Leg deposit was economically robust enough to justify the recommencement of operations. It is anticipated the operation will be producing gold by early 2008.The Frog’s Leg project is located 25km west of Kalgoorlie, in the eastern goldfields region of Western Australia, and represents the southern part of the six million ounce endowed Kundana gold field.Dioro hold 49% of the Frog’s Leg deposit, with the remaining 51% held by La Mancha Resources Australia Pty Ltd, a subsidiary of La Mancha Resources Inc, a Toronto listed company.Dioro Exploration Managing Director, Rhod Grivas, said he was delighted at the significant resource upgrade at the Frog’s Leg gold project, which demonstrates the outstanding potential of the project.“Both Dioro and La Mancha are very excited by the prospect of converting an excellent, robust resource into a very profitable underground mine, while at the same time continuing to grow the known resources at the project,” Mr Grivas said. “Frog’s Leg is moving from being a very good project to a great mine.”“We are very excited with the massive resource upgrade and are confident that the sharp increase in resource will have a significant impact on the profitability of the project”.“The opening of the portal at the project is also another significant milestone in our progress towards production at Frog’s Legs – and whilst mine development has commenced, we are continuing to get very encouraging results from our exploration program, which demonstrates the potential for further resource upgrades in the future.”This Measured and Indicated resource primarily reflects the success of the continued drilling of the Frog’s Leg deposits since October, with the conversion of the large Inferred areas of the Fog and Mist ore bodies to the Indicated status. This drilling alone converted an additional 210,000oz in the northern extents of the Frog’s Leg Deposit.