dioro to fall - short term, page-6

Kalgurli,

I'm just wondering if perhaps you might be a little confused. See below an extract from a July 3rd announcement. The matters you refer to in your post are largely resolved in this announcement....



FROG’S LEG PROJECT
As previously advised, a life of mine water discharge solution is being evaluated by Dioro. Other
major companies in the region are also looking at future water discharge requirements.
Dioro and Mines and Resources Australia Pty Ltd (“MRA”) have entered into a Memorandum of
Understanding (“MOU”) with Placer Dome Asia Pacific (“Placer”) to jointly pursue regional water
discharge possibilities.
As part of this agreement MRA and Placer as participants in the Mungari West Joint Venture, which
owns the White Foil gold mine, will allow Dioro and MRA (the Mungari East Joint Venture) to
discharge water from the Frog’s Leg open cut mining operation into the White Foil pit. This available
discharge will be effective from late August.
The effect of this is to enable the commencement of mining, subject to final regulatory approval, from
the Frog’s Leg project whilst allowing time for all parties to assess regional water discharge options.
The longer term water discharge will also take into consideration the additional requirements that will
be needed based upon the likelihood further ore bodies may be found and mined on joint venture
ground.
Once a suitable long-term water discharge solution is approved by the regulatory authorities and
established, MRA and Dioro will assume the responsibility of dewatering the White Foil pit.
There has been a lengthy dispute as to the ownership of two tenements (E15/634 and a portion of
E15/525) between Placer and the Mungari East Joint Venture (refer Map 1). This area is in the
northwest corner of the joint venture ground, and in no way impacts on Frog’s Leg. As part of the
agreement with Placer, the Mungari East Joint Venture and Placer will form a joint venture over the
disputed ground, with Placer to act as manager. 25% and management of the disputed ground is
transferable upon execution of the MOU, with the balance of 25% to be transferred once regulatory
authorities have approved the water discharge solution. Placer will reimburse the Mungari East Joint
Venture a total of $560,000 exploration expenditure in proportion to Placer’s ownership of the area in
question.
DMC.MP/DIOLTRS.423
Registered Office
2nd Floor, 45 Stirling Highway
Nedlands, Western Australia 6009
Web Site
www.dioro.com.au
Postal Address
PO Box 985
Nedlands
Sourcing a location for the discharge of water from the Frog’s Leg open cut will now enable the
completion of the review of the joint ventures notice of intent. Following granting of this notice of
intent, for which the water discharge solution was the only major outstanding matter, the mining
Telephone: (08) 9389 8799
Facsimile: (08) 9389 8327
Western Australia 6909
contractor will be able to complete pre-strip at the project which is anticipated to take 4 to 6 weeks
prior to commencement of mining of the ore-body. Ore will be stock-piled to a ROM pad for a period
of one month before delivery for processing.
The Directors of Dioro are pleased that the joint initiative formed between three companies with
strategic interests in the Kalgoorlie area will finally enable the commencement of mining operations
at Frog’s Leg.