DIAMOND DRILLING UNCOVERS NEW MINERALISATION ZONE AT FROG’S LEGS GOLD PROJECT
HIGHLIGHTS:
o Discovery Hole MERC626D returned 11m @ 5.61g/t (including 4m @ 10.39g/t) o Mist lode extended 120m north of current envelope o Other significant new strike extensional diamond results include: - 8m @ 7.99g/t Au from 371m and 4m @ 15.39g/t from 493m - 5m @ 5.76g/t Au from 332m (including 1m@ 10.69g/t) o Drilling campaign is set to continue at project
Gold producer Dioro Exploration NL (ASX: DIO) has uncovered potential for a new mineralisation zone within the Frog’s Legs deposit in the Eastern Goldfields Region of Western Australia, following further assay results from the diamond core-drilling program currently underway at the project (Refer Fig 1).
The current resource at the project is also set to grow with the addition of the wide high-grade zones intersected both at depth and along strike to the north.
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/Fog resource of 652,000 ounces makes up 75% of the total underground resource.
Dioro hold 49 per cent of the Mungari East joint venture ground, which contains the Frog’s Leg deposit with the remaining 51% held by project operator Mines and Resources Australia Pty Ltd (MRA”) (a subsidiary of the French group Areva). Areva is currently divesting its interest to La Mancha Resources Inc, a Toronto listed company.
The Mungari East joint venture recently commenced a $2.5 million six month drilling program to test the resource potential outside the current resource envelope. A number of holes are targeted at depth within the Inferred Resource envelope and the results will be made available throughout the six-month program.
The diamond drill program commenced in late May with two drilling rigs – one drilling the northern extent of Mist/Fog lodes – and the other drilling at depth. Both rigs are still on site and a third rig is currently being sourced. All the planned 3443 metres of reverse circulation drilling has been completed including all diamond precollars and 60% of the diamond coring is complete.
The current drilling program will continue into October.
DIO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
