The acquisition allows DIO to process the gold from its other sites....DYOR .
Read from the announcement.
the acquisition of these assets creates significant synergies with a number of gold projects in the area requiring milling capacity. These include the ability to process through South Kal’s efficient mill, ore from Dioro’s 49 per cent of the Frog’s Leg mine and from ore reserves to be developed at the nearby Penfold Gold Project, 100 per cent owned by Dioro. The Frog’s Leg deposit is located 50kms from the South Kal Mine Operations, and has a total resource of 933,000 ounces of gold of which Dioro’s share is 457,000 ounces (refer Table 1). It is anticipated the operation will be in production from early 2008. The Penfold Gold Project consists of a 480km2 tenement package located between Kalgoorlie, Coolgardie and Kambalda, and was acquired from Harmony and associated parties and has 269,000 ounces of JORC compliant resources (refer Table 1). The project is also prospective for nickel.
DIO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
