# DIO - Dioro Exploration



## golddust (2 December 2005)

Anyone have any information regarding Dioro? Have heard the 51% holding of their JV has been sold !


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## jollyfrog (3 May 2006)

*Dioro exploration*

Dioro latest assays look rather spectular! lots of activity whats going on??


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## Sean K (3 May 2006)

*Re: Dioro exploration*

Hello Jollyfrog! Funny to find you here. I haven't seen any new results, but something is definately in the air. Positive review from Fat Prophets last night might be helping interest.


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## imajica (5 May 2006)

Hey all,
           got on the dioro bandwagon yesterday after selling my crescent gold shares at a 30% profit. Not a bad gain after two weeks. I believe there is still considerable upside to the dioro share price. We may even see 12-13cents in a few weeks.


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## Sean K (5 May 2006)

Now it's holding above .085c there is every possibility for it to go back to 13c. Any news on it's JV partner at Frogs Leg possibly selling will see the stock rocket. I think you've got in at a good price. Of course, time will tell.


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## Sean K (11 May 2006)

I reckon it's a definite breakout above .08c on pretty consistant volume.


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## Sean K (22 September 2006)

Well, it did break out for a day or so, before the May correction. LOL. Good pick kennas. 

I'm still holding, waiting for Frogs Leg to come through with another resource upgrade after the current drill program is complete. 

The last drilling report came out with some great intersections 120m outside the current resource envelope, so a decent resource upgrade is a monty. It's current resourse sits at around 900k oz au, with the current drilling hoping to add another 500k oz, but with the last results could be more. 

Interesting chart with it ranging between $0.06 and $0.07 for a year. Hitting $0.06 right now, so I'm thinking of topping up, expecting $0.07 to be just down the track, probably on the next results.


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## jollyfrog (25 October 2006)

*Dioro (dio)*

Wow! dio latest core drill results are looking pretty spectacular, 8 metres @28grams per ton, 1 metre@ 157.08! seems there a little bit of the yellow stuff in mist load, maybe they're finally going somewhere...... & not down! 
Seems to be a few buyers are agreeing with me, any thoughts out there?


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## Sean K (25 October 2006)

*Re: Dioro (dio)*



			
				jollyfrog said:
			
		

> Wow! dio latest core drill results are looking pretty spectacular, 8 metres @28grams per ton, 1 metre@ 157.08! seems there a little bit of the yellow stuff in mist load, maybe they're finally going somewhere...... & not down!
> Seems to be a few buyers are agreeing with me, any thoughts out there?




I have lost patience and sold out. I'm concentrating on things with the potential for 2 m oz plus now. This is probably only going to be a 1 m - 1.5 m resource.


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## Sean K (10 November 2006)

Sold out right at the bottom, on the 2 year base support line.    What was I thinking? 

DIO really testing to push and stay through $0.07 again. Looks like it might be on it's way back to recent highs. Just a litle resistance ahead at $0.075.

Might be time to get on it again, and lose more money.


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## Sean K (14 November 2006)

I'm having another crack at DIO. 

Looks like a bit of a pennant on the up, now breaking. Trying to get some at $0.076.


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## x2rider (19 December 2006)

hi folks
 Nice little ann. late in the day with more intersections at Frogs legs . ( who thinks up these names ) and a good rise in SP too. 
1 metre @ 42.72  grms
4 metres @ 65.48  grms
 31 metres @ 9  grms
 And an intention to announce the updated resource calculation .
 Lots of resistance ahead but  maybe this time a bust out 
 Cheers martin


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## toc_bat (15 January 2007)

up 8% on todays ann, is now at 8.6c so close to 9c high of may, i guess if it breaches that then will be looking pretty good,

ok gotta go to bed,

edit: ps can someone tell me what the yellow dots/circles on the last page of their ann are, ie, red lake, frddo, mud crab, etc

 surely they r not drill sites as a number are outside any project area,


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## Sweet Synergy (20 January 2007)

Current chart on this looking promising, breaking out of a sideways channel.   The daily chart has volume confirming nicely .. (This is a weekly chart)
I don't hold (or have any spare trading money   ) but a friend was interested in the tech/a on this so thought I'd post it here too.  The "R"s mark probable resistance points.  IMO, using the depth of the channel ... the first target will be approx 12.5c

Good luck to all those holding!


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## x2rider (19 February 2007)

hi folks
Hope the trading halt is for the release of the drill results that is a decision from the company to go ahead with the frogs leg expl. 
SRK was employed to do the estimates to JORC and they were due for ann. in Feb. 
Here's hoping that there's money in those frogs legs  :bowser:


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## x2rider (21 February 2007)

Anybody have any idea why the share has gone from a trading halt to a suspension?
Cheers martin


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## x2rider (21 February 2007)

OK
 They are going to have a non renouncable issue of 1:3 at a price of 7.7c . 
 At the last trade it was 9.4 cents 
 Does this mean that the shares will now trade down to this level ?
 Any help ?
 Cheers martin


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## Dr Doom (21 February 2007)

Yes, another 160m shares @ 7.7c will most likely put downward pressure on the sp, probably to about 8c or so?.


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## itchy (27 February 2007)

Nice to see Dioro bounced back again. I really interesting article in the "Resource Stocks" magazine has them tipped for a stella year!


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## Dutchy3 (6 April 2007)

Hi AK

From PM

The chart is daily yet the weekly looks reasonable for the Bulls too.

This is real rough and would be a pattern that I'd save to watchlist. I'm VERY FUSSY and look for patterns that from my perspective have a very good probability of a risk return ratio of 5 +.

That said I also love the power of big whites into new air so all the best with it.


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## Dutchy3 (10 April 2007)

There you go AK ... what other stocks would you like to have rally ????

Cheers


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## drillinto (21 May 2007)

*Re: Dioro (dio)*



kennas said:


> I have lost patience and sold out. I'm concentrating on things with the potential for 2 m oz plus now. This is probably only going to be a 1 m - 1.5 m resource.




Two questions for Kennas:

1. Why did you set your cut off level at "2 m oz plus now" ?

2. What "things" are currently at or above that level ?


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## Sean K (21 May 2007)

*Re: Dioro (dio)*



drillinto said:


> Two questions for Kennas:
> 
> 1. Why did you set your cut off level at "2 m oz plus now" ?
> 
> 2. What "things" are currently at or above that level ?



1. I was looking for projects with a fairly long life, and/or a possible takeover target. The big miners look for potential resources around or above 2m oz. This was just my thoughts at the time. Of course, there are plenty of high grade low oz deposits out there that are economical, and I would probably look at anything on it's merits now. You can make money investing in smaller resources of course.
2. IRN, SBM, NCM, OXR, LHG, AGG, NEM, CTO, BSG, KMN, SGX, TRY (I think) amongst others.


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## Spaghetti (5 June 2007)

Starting to move for some reason. Have a small parcel, hasn't moved much but volume out of the blue just this last half hour. Anyone have access to the number of trades?, can't see it would be too many.


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## Spaghetti (5 June 2007)

Article about DIO from The Age published 21st May. 

http://tinyurl.com/yr9fzs


Reads as if frustrating times may be behind them now.


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## Spaghetti (5 June 2007)

Since my first post where a sudden volume of 2mil had me befuddled the price has gone from .083 to .096 and a volume of over 14 million. Still I do not know why? but am not complaining.
Anybody hear anyhting on the rumour mill?


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## djones (20 June 2007)

*DIO*
Dioro Exploration NL

*Diluted Shares On Issue:* 680,000,000
*Current Share Price: *10c
*Current Market Cap:* $68m

*Reasons its a good buy:*
 * Excellent Frog's Leg Gold JV (49% owned by DIO)
 * Yesterday was reccomended as a BUY from Fat Prophets
 * Expected JORC upgrade late June
 * Gold prices rose for the fourth straight day Tuesday
 * Excellent volume and current breakout today at 10.5c
 * Top 3 shareholders own 20% - LinQ, Harmony and La Mancha

*Penfold Project:*
*AU:*
 * The Penfold Project contains 267,000 oz Au of JORC compliant resources in thirteen prospects
 * Existing resources are yet to be reviewed or optimised at current gold prices
 * All resources are within a short trucking distance to several mills in the area including Harmony’s Jubilee
 * The Penfold Project contains some of the most highly prospective and richly gold endowed shears in Australia.
 * Dioro plan to spend between $1.5M and $2.0M in the next 12 months on exploration at the Penfold Project.

*NI*
 * Dioro is acquiring from Harmony a large land holding in the Kalgoorlie-Kambalda District with exceptional Ni prospectivity – historically the tenure has been held exclusively by gold focused explorers.
 * The project area covers extensions of 3 major ultramafic belts, all of which contain demonstable nickel sulphide production and/or exploration potential
 * Dioro is planning to review the nickel potential as very little nickel exploration has been undertaken on the project in recent times.


*Frogs Leg Deposit (Mungari East Project):*
 * The Frog’s Leg deposit contains a resource of 865,000 ounces
grading 5.9g/t gold (excludes open pit gold production of 130,000oz)
and is open at depth below 400m and along strike to the north and
south. The current drilling program underway has the potential to
add up to 500,000 ounces to this resource inventory.
 * A Dioro Frog’s Leg underground pre-feasibility study was released
to the market in June 2006 confirming a robust underground resource.
The underground study produces 2.77 million tonnes grading 5.43
g/t Au over 7.5 years for an operating surplus of up to $158.5 million
at a A$800/oz gold price.
 * The partners are set to announce a resource upgrade in June and while a bankable feasibility study is not due until next quarter, they have already started to assemble mining equipment and personnel ahead of a start to production in 2008.

*Pokai Project - Gold* - Dioro has a 90% interest in two prospecting licences located adjacent to the Mungari East project, 27km
west of Kalgoorlie

*Lake Greta Joint Venture - Gold* - Dioro has a 24.5% interest (Barrick 50%, MRA 25.5%) in two tenements located west of the Frog’s Leg
deposit and 3km south along strike from the million ounce Raleigh deposit (Barrick/Tribune/Rand).

*Kunderong Project - Gold and Uranium* - During 2005, Dioro pegged four exploration licences (Kunderong project) in the Ashburton region of Western Australia. The tenements have subsequently been granted and are considered prospective for both gold and uranium.

*Ottrey Project - Gold and Copper* - During 2005, Dioro signed a deal to earn a 80% interest by spending $650,000 over a three year period
on E39/592, located 30km S of the Sunrise gold mine and 220km NNE of Kalgoorlie in the southern portion of the Laverton tectonic zone.

-----

*Disclosure - I bought in today for 10.5c*

http://www.dioro.com.au/


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## djones (20 June 2007)

VERY interesting articles:
4th June - http://www.dioro.com.au/files/report/002_The_West_Australian_4_June_2007.pdf
21st May - http://www.dioro.com.au/files/report/001_The_Age_21_May_2007.pdf


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## aaronphetamine (21 June 2007)

I've just started looking at this company, it kind of reminds me a bit of Anglo Australian Resources.. I dont know why lol

Mmmm im trying to decide when to jump into DIO.. whether it will go under 10 cents.. but seems like a pretty good buy with a good looking chart an MACD and RSI, and some good fundatmentals as well.


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## rederob (21 June 2007)

Very strong buying since 4 June, with over 20million traded shares on a number of days: Price moved from 8 cents to peak at 11 cents in the period.
Likely more to this than meets he eye.
Last time similar strong volumes were experiencesd was in October 2004, after which DIO reached over 12 cents; since then spending some 3 years in the wilderness.


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## djones (22 June 2007)

Every day it looks closer to breaking through 11c and stops just short of it. JORC resource is set to be released next week (well before end of june) so hopefully some good news pushes it past 11c! I topped up more today when it looked close to breaking 10.5 and going on a run.


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## aaronphetamine (22 June 2007)

Good post DJones, I didnt know about the JORC announcement imminent, id say ill look to buy in on monday, and let some other people know about DIO for them to put on their radars, What are your thoughts on the JORC announcement ? A good one, and at that a really good one ? From all the volume recently and the already prominient rise in SP in the last weeks it seems that the senitment is that the JORC will be good.. 

Thoughts ? 

This is what AAR is doing as well, rises in SP on no news and awaiting announcements, thats how i was straight away drawn to DIO.. wish id have known about it earlier.

Aaron.


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## drasicjazz (25 June 2007)

this one is gonna be fun
buying depth is getting a nice build up
i hope it will break out and end above the 0.115
all looks good:
cheers


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## adobee (25 June 2007)

Just started looking at this today after hearing strong reviews from a few people.. Bought in today as I noticed there was strong volume and expect that an annoucement or report is forth coming.


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## drasicjazz (25 June 2007)

does anyone seeing what i m seeing ...
this one is ready to explode:blaah:
buy depth is building very strongly


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## juw177 (25 June 2007)

Buying pressure is not showing any signs of decreasing leading up to the announcement. Considering going in this one. Once the profit taking stops, who knows where this can go.


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## motion (26 June 2007)

juw177 said:


> Buying pressure is not showing any signs of decreasing leading up to the announcement. Considering going in this one. Once the profit taking stops, who knows where this can go.




Well this baby is starting to have a good run.....seems they are lining up this morning... glad I got in early.....Good projects maybe an ann coming soon


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## juw177 (26 June 2007)

New high this morning. Is this because the JORC ann is coming? djones, do you have any more info on this JORC upgrade?


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## juw177 (28 June 2007)

Hey whats with the sudden line up of buyers this morning after it going down 8% yesterday?

I am guessing the JORC that djones talked about is coming today?


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## drasicjazz (28 June 2007)

yea just looking at it as well...
up to 0.175 that 's a big jump...
will it stay that way on the opening 
i hope so 
we will see in about 20 min i gues
anyway this is going very well
cheers


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## spottygoose (28 June 2007)

DIO was a Fat Prophets recommendation yesterday............ Hope this helps explain.......... Cheers


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## adobee (28 June 2007)

As a new trader can someone please advise what the storey is with high bids on stocks early in the morning prior to open ? Eg DIO 18c or AIM 45c, are the genunine or usually people trying to manipulate the stock, the sells are the same really low.. ? Do these go through immediately as trades or are they withdrawn just prior to the market opening ?


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## spottygoose (28 June 2007)

As I understand it the high price is just so the person gets to the top of the buy queue. They don't actually pay that price just the highest ask price. So even though he is offering .085 he will pay only .065 if that is the highest sell price.


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## adobee (28 June 2007)

Following from my previous post DIO now has a high of 12.5 .. wht didnt the trade go through at 18 & 17 as was showing ??


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## adobee (28 June 2007)

So the highest ask price will buy the highest sell price or the lowest sell price ? Ie the lowest sell price would go to top of the cue.. ? Thus the people with the really low sells are actually selling ?


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## adobee (28 June 2007)

DIO at 13c breaking some resistance now..  I do not get fat profits but if someone does what was their strategy behind listing DIO as a buy..


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## BlingBling (28 June 2007)

adobee said:


> So the highest ask price will buy the highest sell price or the lowest sell price ? Ie the lowest sell price would go to top of the cue.. ? Thus the people with the really low sells are actually selling ?




So if you see a high price of say .18c you could then put a sell for .17-.18 and they would be stuck with that price? Sounds a bit risky but for the seller being able to offload for a higher price then re enter at a lower price would be iquet profitable??

As for Fats adobee, they've recommended DIO a 3-4 times in the last month on both AUST and Mining reports.


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## spottygoose (28 June 2007)

BlingBling said:


> So if you see a high price of say .18c you could then put a sell for .17-.18 and they would be stuck with that price? Sounds a bit risky but for the seller being able to offload for a higher price then re enter at a lower price would be iquet profitable??
> 
> As for Fats adobee, they've recommended DIO a 3-4 times in the last month on both AUST and Mining reports.




No because a sell order at .18c would take you further up the sell queue and the highest bidder takes out the lowest seller not the seller with the matching price.


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## Spaghetti (2 July 2007)

Bling

They do not put a buy order for say .18. They put a buy order AT LIMIT of .18 knowing full well it will not sell for that price. They keep an eye on the market depth to know it is safe to do so. 

Before trading each day and after trading each day the market is open on an auction basis. The ASX calculates open and closing price based on an average of buy and sell orders. I believe the extreme prices are left out of the equation to calculate price, but not out of the queue so to speak.

So for eg, if we look at todays depth (as at 8.04am) there are almost 2 million shares for sale at .14. On the buy side even though there are orders up to .16 the total buy orders at .14 upto .16 number less about 1/2 million, nowhere near enough to take out the 2 million sell orders at .14 so opening price will be .135 at the moment (may change before 10.00am).


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## BlingBling (2 July 2007)

Spotty & spaghetti,

Cheers for the heads up.
I didn't think it could work the way I described as it seemed too easy!
Thanks.


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## Spaghetti (2 July 2007)

No worries except it opened at .14 lol. never checked after 8.00 am though so hoped I have not given misinformation. But you should get the genral drift. You can also check the asx website for detailed calculation method on opening and closing prices.


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## wildmanchris (5 July 2007)

Guys - can anyone tell me trading went into Pre NR?  I'm not sure what it means but I know its not trading.


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## juw177 (5 July 2007)

From the recent uptrend perhaps good news is coming. But then there has also been a lot of transfers of ownership recently, but I cannot tell if the ownership is being transferred out of the big players or into the big players.

Anyone care to comment?


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## adobee (5 July 2007)

From what i just read there is a trading halt for announcement of resource upgrade at frogs leg gold. I am expecting this will be very positive and I will finally make some money! The question is too hold when its high or to sell and buy in again later as this pretty up and down..


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## Bluesky (5 July 2007)

Take a look at the market depth on the buy side, this looks like good news coming. Lot of sellers 15c too.
Should be interesting.


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## springhill (5 July 2007)

Im not a happy camper today, put an order in to buy at 14 cents and missed out by a crumby 95,000 before the trading halt was called. Its a fickle game but thats why we love it. Sorry, just had to vent! Good luck to all that did get in


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## BlingBling (5 July 2007)

Don't worry Springhill!
I missed it at 7c and again at 9.5c always just by a whisker. If I hadn't been so bloody tight! ( I did get in at 11c finally!)


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## drasicjazz (5 July 2007)

well how is this i sold out at .45
it's been very good and i was very happy with the gain of 38% in 5 days
maybe there is more and for the one 's still in all my best and let the ann be good

my reason for selling was the very fast rise 
; all dio now can do for me is win the Stock Tipping Competition

all the best 
drasic


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## Parag0n (6 July 2007)

I can tell you now that the announcement for Friday morning will be almost a double in the gold estimation of the frogs leg deposit. This stock will break out.

LaMancha posted this announcment at 9am Canadian time this morning - LMA Owns 51% of Frogs leg... DIO owns 49% of Frogs leg.

Enjoy.

*HIGHLIGHTS: · Measured and indicated resource increase by 95% to 723,000 ounces of gold · Drilling continues at Frog's Leg · Updated feasibility study expected for September 2007 · Preliminary stages of portal development to be inaugurated tomorrow*

MONTREAL, QUEBEC--(CCNMatthews - July 5, 2007) - All amounts are expressed in CA dollars, unless otherwise indicated.

La Mancha Resources inc. (TSX:LMA) (thereafter "La Mancha" or the "Company") is pleased to announce that the Measured and Indicated ("M&I") resource at its Frog's Leg gold project has increased by more than 95% compared to the resource estimated as of December 31, 2006. As of June 25 2007, Frog's Leg M&I resource is 723,000 ounces of gold (368,700 oz attributable to La Mancha), compared to 369,000 ounces of gold (188,000 oz ounces attributable to La Mancha) as of December 31, 2006.

Michel Cuilhe, Chairman and CEO of La Mancha commented: "Frog's Leg is moving from being a very good project to a great mine. We are very excited with the results of the resource update. We are confident that this sharp increase in resource will have a significant impact on the profitability of the project. While we are beginning to develop the mine, we are continuing to get very encouraging results from our exploration program."

As of June 30th 2007

Tonnes Grade Ounces
-----------------------------------------------------------
Measured 972,000 7.1 222,000
Indicated 2,249,000 6.9 501,000
-----------------------------------------------------------
Total Measured & Indicated 3,221,000 7.0 723,000
-----------------------------------------------------------
Inferred 1,136,000 5.7 209,000


This increase can essentially be attributed to two factors: A) the conversion of inferred resource to the M&I category due to the infill drilling that has taken place since October 2006 and B) the complete re-evaluation and interpretation of the Frog's Leg ore bodies during this same period.

This M&I 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. The drilling program comprised 20 holes designed to give optimum coverage within previously sparsely drilled areas at the northern end of the Fog and Mist ore bodies.

In addition, a complete review of the geological information from all previous drilling has led to a new interpretation and modeling of the resource. The primary outcome of this systematic approach is the extension and widening of the three main ore bodies, "Mist" "Rocket" and "Fog", as shown on the attached long section presented in appendix I. The new modeling approach, in contrast to the previous reported resource, now shows a decrease in the average grade and a large increase in the tonnage. The primary reason is that the modeled lodes reflect what will actually be extracted during mining. These lodes reflect the true geological mineralisation styles occurring at Frog's Leg.

This updated resource calculation incorporates the results of all new holes completed between October 2006 and May 2007 that have not been included in the December 2006 calculation. Reported resource figures have been calculated using an Au cut off grade of 3.5g/t, thus being consistent with the resource estimates reported in the previous resource update of December 2006.

NEXT STEPS

Significant results have been obtained since the beginning of the drilling program in October 2006 and drilling is now scheduled to continue for the remainder of the year. The program for 2007 comprises 20,000m of diamond drilling at a forecasted cost of $4.4 million (of which $2.2 million is attributable to La Mancha). At the end of June, 24 holes had been completed, totaling 10,500m at a cost of $2.4M. The drilling targets for the remainder of the year will be the Rocket orebody and the area between Rocket and Mist. New drill results will be released as they come available.

The Frog's Leg Feasibility Study is now expected to be completed in September, 2007. This slight delay in producing the feasibility study can be explained by the impact the updated resource calculation has on the mine design. While feasibility reviews based on the December 2006 Resource calculation have indicated positive results, it was recognized that the new resource update could significantly improve the already good results. Feasibility work on the December 2006 Resource calculation was halted and is now being completed on the basis of the new resource.

Despite the delay in finalizing the updated feasibility study, the previously completed positive pre-feasibility study and the significant increase in resource observed since then have justified the preliminary stages of portal development, which will be inaugurated tomorrow. The preliminary development work to be completed between now and September will not be impacted by the revised mine design. Such steps are being undertaken to avoid any delays in resuming mining operations. As such, reopening of Frog's Leg is still scheduled for the first half of 2008.


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## adobee (6 July 2007)

The announcement has now been posted via DIO. This does look very promising for those holding, expected reopen is Monday, I guess its now a matter to wait and see where this goes.


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## juw177 (6 July 2007)

This has just reopened at 0.15c which is a lower price than I anticipated. Looks no one wants to wait until Monday. SP will go up as people catch on throughout the day.


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## Quixis (6 July 2007)

NEWS RELEASE
6 July 2007 ASX: DIO

DIORO INCREASES RESOURCE BY 95% AT FROG’S LEG GOLD PROJECT

HIGHLIGHTS:
• Dioro confirms measured and indicated resource increases by 95% to 723,000 ounces of gold
• At midday today the portal development at Frog’s Leg commences.
• Drilling program continues at Frog’s Leg with an updated feasibility study expected for September

Dioro Exploration NL (“Dioro” or the “Company”), with joint venture partner La Mancha Resources Australia Pty Ltd (“La Mancha”), confirmed today that the Measured and Indicated (“M&I”) resource has increased by more than 95 per cent 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 today 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 per cent of the Frog’s Leg deposit, with the remaining 51 per cent held by La Mancha Resources Australia Pty Ltd, a subsidiary of La Mancha Resources Inc, a Toronto listed company.

Dioro Exploration Managing Director, Mr 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 today 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.”
Tonnes
Grade
Ounces
Measured
972,000
7.1
222,000
Indicated
2,249,000
6.9
501,000
Total Measured & Indicated
3,221,000
7.0
723,000
Inferred
1,136,000
5.7
209,000
This increase in resources can essentially be attributed to two factors:
(a) the conversion of inferred resources to the M&I category due to the infill drilling that has taken place since October 2006; and
(b) the complete re-evaluation and interpretation of the Frog’s Leg Lodes during this same period.

This M&I 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. The drilling program comprised 20 holes, designed to give optimum coverage within previously sparsely drilled areas at the northern end of the Fog and Mist ore bodies.

In addition, a complete review of the geological information from all previous drilling has led to a new interpretation and modeling of the resource. The primary outcome of this systematic approach is the extension and widening of the three main ore bodies, “Mist” “Rocket” and “Fog”, as shown on the attached long section presented in appendix I. The new modeling approach, compared to the previous reported resource, now shows a decrease in the average grade and a large increase in the tonnes. The primary reason is that the modeled lodes reflect what will actually be extracted during mining. These lodes reflect the true geological mineralisation styles occurring at Frog’s Leg.
This updated resource calculation incorporates the results of all new holes completed between October 2006 and May 2007 that had not been included in the December 2006 calculation. Reported resource figures have been calculated using a Au cut off grade of 3.5g/t, consistent with the resource estimates reported from the previous resource update of December 2006.


NEXT STEPS
Significant results have been obtained since the beginning of the drilling program in October 2006 and drilling is now scheduled to continue for the rest of the year. The program for 2007 comprises 20,000m of diamond drilling at a forecast cost of approximately $5 million ($2.5 million attributable to Dioro). At the end of June, 24 holes had been completed for 10,500m at a cost of approximately $2.6M. Drilling planned for the remainder of the year will target the Rocket orebody and the area between Rocket and Mist.
The Frog’s Leg Feasibility Study is expected to be completed in September 2007. The previously completed positive pre-feasibility studies and the significant increase in resource observed since then, have justified the preliminary stages of portal development inaugurated this morning. The preliminary development work to be completed between now and September will not be impacted by the revised mine design but will avoid the delay of mine operations scheduled to start in the first half of 2008.

Editors Notes:
About Frog’s Legs
Dioro is a diversified minerals exploration company that has exposure to gold, uranium, nickel and copper through projects in located in Western Australia. The Company’s principal asset is the 49% interest in the Frog’s Leg project located 25km west of Kalgoorlie.

The company successfully opened the portal at the underground goldmine today which demonstrates the company’s progress towards gold production in early 2008.

The JV partners have recruited an experienced operations team and have purchased key underground mining equipment prior to completion of a bankable feasibility study, which will reduce the lead time for securing underground mining equipment to ensure that mining will proceed on time and budget. The JV partners have also acquired a second hand Altlas Copco M2D jumbo and are currently servicing and rebuilding the equipment.
Dioro has also acquired a 100% interest in a large gold and nickel package of tenements (Penfold Project) located adjacent to the Frog’s Leg project, between Kalgoorlie, Coolgardie and Kambalda. Gold exploration commenced late in 2006, with 14,575 metres of drilling completed.
Dioro also operates the Kunderong uranium project (741km²) which is pegged over 50km length of the Breshnahan unconformity that is prospective for unconformity style uranium mineralization, located near Newman in Western Australia.


QUALITY CONTROL
The drilling program was carried out by, and under the supervision of Martin Bennett Bsc. Hons. (Geol.), MSc. (ODG), M.AIG, Exploration Manager of La Mancha Australia. The program was conducted to industry best practice standards. Samples utilized for the resource update comprise half NQ2 diamond drill core sampled on a one-metre basis. No niche sampling took place. Samples were assayed at Genalysis Laboratories in Perth, using a 400g LeachWell cyanide leach, followed by solvent extraction and flame AAS.
The laboratory utilized a series of sample blanks, standards and check assays. In addition, La Mancha Australia routinely conducts check assaying programs utilizing alternative laboratories.

The Frog’s Leg geological re-interpretation was completed by La Mancha Australia staff, the block model, including the building of the wireframes for the model, resource estimation and classification was undertaken Trevor Eddie Bsc. (Geol.) MAusIMM, Chief Geologist, also of La Mancha Australia. The geostatistical work was carried out by David Williams Bsc.(Geol.) (Hons) MAusIMM Senior Resource Geologist of CSA Australia (a group of Geological and Management consultants). The updated resource review and estimation conform to the requirements of NI43-101 and the CIM Best Practices for Estimation of Mineral Resources and JORC Code.
ENDS


For further information please contact:
Rhod Grivas, Managing Director David Tasker/ John Williams
Dioro Exploration Professional Public Relations
Ph: +61 8 9389 8799 Ph: +61 8 9388 0944


The information in this report that relates to Mineral Resources is based on data provided by La Mancha Australia Pty Ltd and supervised by Mr Trevor Eddie MAusIMM an employee of La Mancha Australia Pty Ltd. Mr Eddie has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Eddie consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.


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## BlingBling (6 July 2007)

juw177 said:


> This has just reopened at 0.15c which is a lower price than I anticipated. Looks no one wants to wait until Monday. SP will go up as people catch on throughout the day.




I was also suprised that it opened so low, though there were alot of sellers at .15c when I last looked this morning.


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## adobee (6 July 2007)

mmm i went out and came back thinking nothing was happening for a while.. anyway reopen a bit disappointing. i guess the market being down as a whole doesnt help.. I am not to worried as i think I will hold longer term and hope this can now maintain at 15c .. Perhaps its worth buying more now at this price..


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## Quixis (11 July 2007)

ANN

DIORO TO ASSIGN NICKEL RIGHTS TO SUBSIDIARY
AHEAD OF LIKELY SPIN-OFF

Australian resources company Dioro Exploration NL (“Dioro”) will assign the nickel rights over its recently acquired Penfolds tenements to a wholly owned subsidiary of the Company, ahead of a likely spin-off later in the year.
The consideration for the assignment of the nickel rights by Dioro will be the issue by the subsidiary of 25,000,000 shares at an issue price of 20 cents each.
It is Dioro’s intention to distribute the 25,000,000 shares by way of an in specie distribution to all its shareholders on a pro-rata basis. This distribution will require shareholder approval, as it constitutes a return of capital.
The subsidiary Company will then issue 25,000,000 shares at 20 cents each to raise $5,000,000 in capital. A priority allocation will be given to Dioro shareholders to apply for shares on a pro rata basis, for a minimum of 20,000,000 shares.
It is the intention to list the subsidiary on the ASX.
The Penfold Nickel Project is considered highly prospective due to;
• its location covering three nickel belts, 12 kilometres from Kambalda, a world class nickel province in Western Australia.
• its dormant exploration status with no nickel exploration undertaken on the project in the last 15 years due to the projects ownership by large gold-focussed explorers.
• its historical sulphide nickel intercepts including 3m @ 3.1% Ni at the Abattoir prospect (Marston 1984).
• the lack of modern geophysics with no documented evidence of any previous airborne, surface or down hole geophysical techniques. These techniques have led to the discovery of numerous nickel deposits in recent times.
The board of Dioro has decided to assign this nickel project to a subsidiary so as to allow for the creation of a focused approach to the exploration and development of this project.
This will also allow Dioro to focus on its gold assets including its 49% interest in the Frogs Leg gold project and its 100 % interest in the Penfold gold project.


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## adobee (11 July 2007)

Whats are peoples thoughts on this announcement and how do they interpret the effects they expect it to have on the share price.


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## vicb (16 July 2007)

Chart still looks good.
Would like to see an increase in volume though.
Bought in on Friday, I think there will be a bit more interest in this stock when the nickle spinoff details are through.


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## BlingBling (17 July 2007)

New ann out.
ASX ANNOUNCEMENT

17 JULY 2007

DIORO AND CVRD JOIN FORCES

TO EXPLORE URANIUM PROJECT

Highlights:

• Dioro signs farm in agreement with the second largest mining company in the
world CVRD to explore the Kunderong and Kennedy Projects, Western Australia
• CVRD to spend A$4m over four years to earn 60 per cent of the uranium rights
in the projects
• Recent results of radiometric and magnetic surveys have identified numerous
uranium anomalies at project.
• Airborne electromagnetic survey planned for next quarter

Australian resource company Dioro Exploration NL (“Dioro or “the company”) has signed a
farm in agreement with Rio Doce Australia Pty Limited, a wholly-owned subsidiary of
CVRD,to progress uranium exploration at the company’s Kunderong and Kennedy uranium
projects, located near Newman in Western Australia.

Under the terms of the farm in agreement, CVRD will spend A$4m on exploration at the
project over the next four years, to earn an interest of 60 per cent in the uranium rights, with a
minimum expenditure of A$0.8m prior to withdrawal. Dioro then can elect to contribute to
further exploration or dilute to 80% and be free carried through to the completion of a pre-
feasibility study. Dioro maintains to rights to all other minerals including gold on the
Kunderong and Kennedy Projects.

Dioro will initially manage the uranium exploration and has engaged the services of Peter
Robinson as Project Manager. Peter is a uranium exploration expert with over 36 years of
Australian exploration experience and over 14 years with Australian uranium specific
experience.

The granted Kunderong project (741km²) is pegged over 50km strike length of the
Breshnahan unconformity that is prospective for unconformity style uranium mineralisation.

The region in which this project is located is one of the most prospective areas for this style of
mineralisation and includes two existing mineralized prospects Angelo and Turee Creek
(Noranda) located within 2 kilometres of the Kunderong tenements.

In November last year Dioro uncovered several uranium targets after the completion of an
initial radiometric and magnetic survey at the project. The survey, which covered a total area
of 741km², identified a number of large radiometric uranium anomalies over the Breshnahan
unconformity and within the calcrete channels draining from these unconformities.

In addition to the survey, the company has also pegged two new tenements, the Kennedy
Project, which covers 1123km². This project has the potential to host uranium. The Kennedy
Project is located 25km south west of the Kunderong Project.

Exploration is scheduled to commence as early as September with a detailed airborne
electromagnetic survey over the whole of the Kunderong Project and part of the Kennedy
project. This program will provide valuable structural, lithological and geophysical information
that will allow the partners to better target future ground-based exploration.

Unconformity related uranium deposits accounted for in excess of 30 percent of the world’s
total uranium resources and in Australia projects included the Alligator Rivers region in the
Northern Territory and the Rudall River region (including Kintyre) in Western Australia.

Dioro Exploration Managing Director, Rhod Grivas said the farm in agreement was an
outstanding result for shareholders that would enable the company to focus on progressing
its gold projects while providing an entrance for CVRD into Australia’s uranium sector.

“We are delighted to secure a farm-in agreement with one of the worlds largest mining
companies in CVRD. Not only do they have the financial backing and technical personnel to
further advance the Kunderong uranium project, but under the terms of this agreement they
will expend a large sum on exploration – which was very important for us,” Mr Grivas said.

“Australia is well-placed to capitalise on the huge increase in demand for uranium and Dioro
Exploration looks forward to working with CVRD to rapidly advance exploration for uranium at
Kunderong.”

The agreement will enable Dioro to focus on progressing the development of its 49 per cent
owned Frog’s Leg gold project and Penfolds gold and nickel projects which are located in the
goldfields region of Western Australia.

Yours faithfully

DIORO EXPLORATION NL


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## adobee (20 July 2007)

17/07/2007 12:25PM 3  Dioro and CVRD Join Forces to Explore Uranium Project 
11/07/2007 1:09PM 3  Assignment of Nickel Rights 
06/07/2007 11:07AM 5  Dioro Increases Resource by 95% at Frogs Leg 


Things are looking good here, I am really surprised that the share price is still around 15c. I am jumping in today and hope for a Uranium update shortly!


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## BlingBling (20 July 2007)

adobee said:


> 17/07/2007 12:25PM 3  Dioro and CVRD Join Forces to Explore Uranium Project
> 11/07/2007 1:09PM 3  Assignment of Nickel Rights
> 06/07/2007 11:07AM 5  Dioro Increases Resource by 95% at Frogs Leg
> 
> ...




Yeah, I was really suprised that the share price is at the current low level, especially after the 95% increase to resources at frogs leg.  I still have an order in at .14 that I don't thik will get filled.

Is there any guess on the timeframe for the Nickel spinoff?


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## springhill (20 July 2007)

adobee said:


> 17/07/2007 12:25PM 3  Dioro and CVRD Join Forces to Explore Uranium Project
> 
> 
> 
> Things are looking good here, I am really surprised that the share price is still around 15c. I am jumping in today and hope for a Uranium update shortly!




Possibly this announcement hasnt gained traction due to the tenemant being in WA?!? We all know Carpenter Govts stance on U mining. Thats my guess. Plus U doesnt seem to be the flavour of the month with all eyes on iron ore at the moment


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## tezz (20 July 2007)

I can't believe after 2 good ann. the share hasa'nt moved either, this stock is undervalued, I'm happy getting it at 15, hope we get the 4th quarter activities report end of this month, I'm sure the market will wake up to this one.


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## vicb (20 July 2007)

Could be an interesting ride.
May have seen a bit of consolidation in the price in the last few days, it has risen quite sharply. 
The nickle spinoff should see some more interest in it.
Company has been very busy with lots of positive projects in the pipe line, hopefully they can get some good news out to keep the share price going in the right direction.
Been some big buys in the last few days (also been some big sells).
Thought the Uranium news may have been the bang to see it over the 20c mark.


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## adobee (26 July 2007)

Lots of interest today and reasonable rise considering the market overall I think we could see some strong rises here shortly and possibly some further news..


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## wildmanchris (30 July 2007)

DIO gone into a trading halt this morning - any ideas what news is on the horizon?  Its lost a bit of gorund over the last couple of weeks.


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## BlingBling (30 July 2007)

I have no Idea really, but it might have something to do with the Nickel spinoff?? Trading halt is till Wednesday.


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## vicb (30 July 2007)

I was expecting a bigger fall before the trading halt.
I am thinking it will be the details of the nickel spin off.
Should help the share price.


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## wildmanchris (31 July 2007)

Announcement

Highlights: 
• An acquisition of a suite of assets which currently produce approximately 80,000 ounces of gold a year and includes: o an efficient 1.2 million tpa mill o three years of reserves at current production rates o a resource inventory of 2.1 million ounces o a tenement package covering 1100sqkm in the heart one of the world’s most productive gold belts. 

• Resource acquisition at a total cost of a $24 per gold resource ounce. 

• Following the Harmony acquisition, Dioro will have total attributable resources of over 2.6 million ounces of gold. 

• The acquisition of the Jubilee mill provides Dioro with an immediate processing option for its Frog’s Leg ore and a potential new profit centre.


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## vicb (31 July 2007)

I thought it was fantastic news.
Not only do they have the option to use the processing plant but they have a working mine.
Certainly a cost saving move.
May go to shareholders to raise the capital?
They are a pretty busy mob.


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## Boyou (31 July 2007)

The Current Market mood has placed it's heavy hand on quite a few promising stocks today...methinks! 

I bought into DIO on the strength of a few good rates by Fat Prophets.

Glad I did...the Greyhound as F P has tagged it, has a way to run.

I was watching the action today as it came back to trade after the ann....over 6 mil in the first 20 mins..Some people have been accumulating  for a few days and profits were taken.

The couple few days will see the hound go free (I hope )

Cheers


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## BlingBling (31 July 2007)

On the ann today they talked about a possible Toronto SX listing. That couldn't hurt either could it?


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## Boyou (31 July 2007)

The listing on the TSX would give much greater exposure to DIO..of course

The Canadians have a much more "developed" approach to mining ,and particularly mineral exploration than we have ,yet.

Trying to think now ...another small cap explorer has recently listed on TSX.

Any help with who?


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## vicb (1 August 2007)

It maybe IGD, IAMGOLD CORP.
I think they used to be gallery gold, it was an old fat prophets stock.
I think fats put a sell recommendation out after it announcement it was moving to the TSX.


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## SimmoAus (3 August 2007)

Hi guys
Im new to shares and my first buy was DIO. It was from a tip off a friend. Sounds like its been a good buy, one to get me heading in the right direction.

I got in at 0.15 do you think that it will move very far from that?

They were also on the front page of the Kalgoorlie miner after the last release. 
I would of thought they would have moved a bit more then they have!!


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## Boyou (4 August 2007)

Welcome to the forums ,SimmoAus.

DIO are definitely an exciting explorer,but there are quite a few in that catagory.

Wondering if you noticed a bit of a "correction" in the market in the last couple of days? I think that might have something to do with DIO's lack of SP movement.Think they have done well to hold on to 0.14.

Quite a few others junior explorers have been mauled badly in the bun fight.Take a look at AZS and FNT! 

Cheers


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## SimmoAus (4 August 2007)

Thanks Boyou

I think its a good sign they held up well over the down fall.
Hopefully it doesn't continue after the weekend.


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## Quixis (9 August 2007)

I have no intension of selling my DIO shares. There appear to be great things afoot with DIO. An industry respected gent with a considerable amount of gold mining experience has just joined the board.

There's the Brazilian miner CVRD in on the U action. There's the possible listing on the TSX and then there's the acquisition of the surrounding Harmony mining areas.

Production starts very soon using the newly acquired Harmony kit.

DYOR but I'm pretty happy.


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## adobee (25 August 2007)

I did sell my DIO shares however am surprised that the stock has not bounced back still round 10c. I will get back in on Monday, I dont think it will take much for them to again have some resistance around 14c..


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## BlingBling (6 September 2007)

Significant High Grade “Hits” between
Rocket and Mist Orebodies at Frog’s Leg

SOME OF THE BEST INTERSECTIONS:
 10m @ 19.72g/t Au from 421m
 5m @ 18.14g/t Au from 376m
 10m @ 17.55g/t Au from 441m
 12m @ 15.70g/t Au from 376m

Dioro Exploration NL (ASXIO, thereafter “Dioro” or the “Company”) is pleased to
announce significant results from the latest diamond drill holes completed at the advanced
Frog’s Leg project. As indicated above, many high grade zones have been intersected.
Moreover, the new drill results suggest mineralization may be continuous between the
Rocket and Mist ore bodies, thus potentially leading to mine development cost reductions
and a further resource upgrade.
As published on May 14, 2007, a single diamond hole was drilled between Rocket and Mist in
early 2007 and intersected 5m at 16g/t Au. Results of two of the three diamond holes drilled
to follow up this hole are now available. MEDD119, located 25m above the previously drilled
hole, intersected 10m at 19.72g/t Au from 421m and 10m at 17.55g/t Au from 441m.
Similarly, MEDD120, located 50m south of the previously drilled hole, intersected 12m at
15.7g/t Au from 435m and 6m at 11.47g/t Au from 451m.
Previous shallower drilling between the Mist and Rocket resource returned narrow zones of
low to moderate grade mineralization. The new drilling indicates that the two resources may
be linked at depth. This may result in a further resource upgrade and can potentially have a
positive impact on the mine development by reducing the cost of developing between the
two resources.
In addition, several other zones of high-grade mineralization have been intersected in the
Mist, Fog and Rocket ore bodies. Some of the best results, found in the Rocket orebody,
include an intersect of 1m at 12.05g/t Au from 199.8m and 5m at 18.14 g/t Au from 376m.
These results should translate into an increase in the indicated resource.

The current drilling program at Frog’s Leg was initiated in third quarter of 2006. With the
goal of improving the resource base prior to the finalization of a feasibility study for an
underground mine, the drilling program has resulted in a 150% increase in the Frog’s Leg
measured and indicated resource since May of 2006. During the first half of this year, the
focus was on converting the inferred resource at Mist and Fog to an indicated status.
Following the successful completion of this program, which translated into nearly doubling
the December 2006 stated measured and indicated resource, it was with much anticipation
that further drilling was done. In July, drilling has targeted the lower portions of the Rocket
resource, the area between Mist and Rocket, Gap, as well as the Mist and Fog ore bodies. A
full list of results from the drilled holes is shown in Appendix A.
NEXT STEPS
Additional diamond holes will be drilled to further delineate the extent of the mineralization
between the Mist and Rocket resources. The program will comprise of six holes for
approximately 3200m. The location of the planned holes is shown in Appendix C. The holes
have been designed to extend the high-grade mineralized zone intersected in the Gap area
and to extend to the boundary of the inferred resource. These holes are scheduled to be
completed by the fourth quarter of this year.
Although the recent obtained results won’t be included in the Feasibility Study, scheduled to
be released in October, they could represent an upside potential which may be included at a
later date. Production at the Frog’s Leg underground mine is still expected to commence in
the first semester of 2008.

sounds good to me. We should be seeing the feasability report out very soon. Might be a good time to stock up.


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## adobee (7 September 2007)

good movement today and highest volumes we have seen in a while... bad luck i am not holding any.. worse that i had a buy order in at 11c that didnt get filled... see what happens monday..  I really want to get back on it..


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## Boyou (26 September 2007)

Anyone taking notice of Dioro these days? Sp up a massive 20%.

And volume over 32 mil. Can't see any announcements of note.Perhaps there is one coming very soon.

The last anouncement re Frogs Leg was a while back and didn't seem to stir the market much...What's Up Doc??

Cheers Ya'll


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## BlingBling (26 September 2007)

FP put a buy again last night.
I really think this one is a beauty. I've been holding for a while and slowly building up my holdings. moving up to being producers thru the Harmony Aq.
The Feasibility study will be out very soon, Tsx listing and the recent high grade hits at frogs leg (that won't be included in the FS).

Future looks bright!


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## Boyou (30 September 2007)

Wasn't sure where to post this..and rather than start a new thread..here will do as Dioro gets a mention.

From Compareshares newsletter..looks like the rush is on!!


Aussie miners in mini stampede on TSX


AAP
30/09/2007 9:59am	


The steady trickle of Australian mining companies listing on the Toronto Stock Exchange (TSX) has become a stream.

Liam Twigger, director of Prime Corporate Finance, a corporate advisory firm specialising in TSX listings, said Australian companies had been on the nose for Canadian investors in past decades due to some underperformers, but the sentiment had swung the other way in recent years.

The Canadian market is awash with capital and, crying out for new investment stories, has welcomed the new breed of Aussie juniors with open arms.

About 65 per cent of the world's mineral resource companies are listed on the TSX and about 40 per cent of the capital being offered is from the US, so it provides good exposure to the entire North American market for Australia's junior miners.

Papua New Guinea-focused Lihir Gold Ltd is the latest to commence trading on the TSX.

Mexico-focused Azure Minerals Ltd said it would apply to do the same.

Last month, Dioro Exploration NL announced its plans for a TSX listing and an associated $70 million capital raising.

Mr Twigger says Dioro "could well be bowled over in the rush" for shares.

Other firms securing a dual TSX-Australian Stock Exchange (ASX) listing in the past six months include Perth's Mirabela Nickel Ltd, Andean Resources Ltd and Centamin Egypt, which are focused on Brazil, Argentina and Egypt respectively.

Part of the appeal of getting Canadian investors on the share register is their lower level of risk aversion: they will not hesitate to back explorers active in emerging economies.

Anvil Mining, which produces copper in the Democratic Republic of the Congo, moved its primary listing from the ASX to the TSX last year.

Moto Goldmines went a step further, dropping its ASX listing late last year after listing on the TSX and London's Alternative Investment Market.

"Gold producer OceanaGold Corporation (which is listed on the TSX, ASX and New Zealand stock exchange) recently redomiciled itself, which is a slap in the face for the ASX," Mr Twigger said.

He said Anvil and Zambia-focused Equinox Minerals Ltd were some of the best performing Aussies on the TSX.

Equinox is one of the largest daily-traded stocks.

Perth's Moly Mines Ltd was the fifth Australian company to list on the TSX in 2006 - no doubt acutely aware that molybdenum is a familiar metal to sophisticated Canadian investors.

Mr Twigger said Moly's timing had been perfect.

He cautioned those seeking a TSX listing to bear in mind that a market capitalisation of about $100 million was necessary as the listing process cost about $1 million, compared to half as much in Australia.

"They also need a good reason to list on the TSX like funding a feasibility study, not just for working capital."

It's also important for these companies to have a physical presence in Canada in some form and for senior executives to travel to Toronto at least once each quarter, Mr Twigger said.

Perth-headquartered nickel producer Western Areas NL dual listed on the TSX in late 2005.

This month it increased its investment in TSX-listed Mustang Minerals, which explores for nickel and precious metals in Ontario and Manitoba, to 19.2 per cent.

Toronto-based Australian Trade Commission senior business development manager Greg Coelho was recently in Sydney, spreading the message that Canada's energy and infrastructure sectors offered enormous opportunities to Australian companies.

"... particularly in investment and activities in the engineering, procurement and construction work in terms of the provision of high-end or specialised technical expertise ... engineering consultants, facilities maintenance and so forth,' Mr Coelho said.

"Also, Australian companies are providing software and specialised IT services to Canada's mining sector."

Mr Coelho said Rio Tinto's $US38.1 billion ($43 billion) takeover of Canadian aluminium producer Alcan highlighted that Canada was increasingly on the radar of Australia's business community.

That was also illustrated this month when South Australia's Minotaur Exploration Ltd announced its first overseas expansion into the Canadian east coast province of Nova Scotia.

Perth's Elkedra Diamonds NL, which produces gems in Brazil, announced on Friday that shareholders will vote in late October on a merger with Canada's Vaaldiam Resources Ltd.

So while Aussies are steadily doing more business in Canada, it is equally apparent that our shores increasingly hold interest to the Canucks, with uranium appearing to be the greatest attraction.

Canadians have extensive experience with uranium mining and Australia's reserves are the largest, being 24 per cent of the total, according to the World Nuclear Association.

The world's largest uranium producer, Saskatchewan-headquartered Cameco Corporation, holds more than two million hectares of uranium prospective land in Australia compared with 1.59 million hectares in its homeland.

Another notable Canadian miner increasingly active in Australia is Mega Uranium Ltd, spending about 65 per cent of its fiscal 2007 budget in Australia.

Mega has acquired two Australian companies, Hindmarsh Resources Ltd and Redport Ltd, as well as uranium interests in Queensland from Australian company Glengarry Resources Ltd.

Mr Coelho surmised that Canada and Australia had a natural affinity. This was a sentiment put forth also by Canada's prime minister Stephen Harper on his recent visit to Sydney for the APEC Summit.

Both had enjoyed strong growth in recent years, and both faced unprecedented competition from emerging economic giants China and India, Mr Harper said.

So far, however, these two economies have offered great opportunity for both Canada and Australia, with their immense demand for commodities fuelling the strength of Canada's and Australia's resources sectors.

And we're likely to have even more in common, with an overwhelming number of local resources companies calling for the adoption of a flow-through shares scheme, a highly successful Canadian tax benefit program designed to encourage resource exploration.

At a recent uranium conference in Perth, Labor senator Chris Evans said the introduction of a capped flow through shares scheme was likely to become an election issue.


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## BlingBling (1 October 2007)

What are people's thoughts on the 1:14 consolidation? 
Is it a good thing? I've seen a few cases where the share price has dropped big time after consolidation, but those didn't have as bright a future as DIO seems to have.
Cheers


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## adobee (11 October 2007)

DIO breaking out this morning already couple of million shares traded and 17.5 c

..........................................


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## Sean K (11 October 2007)

adobee said:


> DIO breaking out this morning already couple of million shares traded and 17.5 c
> 
> ..........................................



Looking good, but not 'broken out' yet. Needs to finish eod at or above .175 for in initial break to alh and then confirm with follow up tomorrow. Been a great stock the past 6 months, if not a tad volatile. I followed this very closely for a couple of years before losing patience.


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## adobee (11 October 2007)

Closed at 17c with about 28million shares traded.. Strange jump in activity on this one perhaps good news ahead..


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## Bushman (11 October 2007)

adobee said:


> Closed at 17c with about 28million shares traded.. Strange jump in activity on this one perhaps good news ahead..




I think you will find that this was recommended as a buy in this months Fat Prophets report...hence the flurry in activity today.


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## adobee (12 October 2007)

ahh... I see , I dont get the Fat Prophets report however I am happy for them to push it along (not really as I am not holding any)..
What are they saying ?


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## adobee (12 October 2007)

Definite break out now..... 18.5c........
still large volumes..  
mmmmmmmmmmmmmmmmmm
still dont own any...


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## wipz (12 October 2007)

Sold mine few months back at 14c, my head really hurts from banging it against the brick wall..


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## BlingBling (12 October 2007)

wipz said:


> Sold mine few months back at 14c, my head really hurts from banging it against the brick wall..




I'm still in 
BUT
I'd be doing alot better if I had put a larger portion of my $$$ into DIO rather than diversifying.

Diversifying.... It's over rated!


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## Quixis (12 October 2007)

BlingBling said:


> Diversifying.... It's over rated!




Find a stock with substance and make the play.  

Well that's one of 500,000 or so scenarios. : Mind you it's exciting times ahead.


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## adobee (16 October 2007)

Whats the new code for DIO ?????????????

............................................................
....................................
........................


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## dubiousinfo (16 October 2007)

adobee said:


> Whats the new code for DIO ?????????????
> 
> ............................................................
> ....................................
> ........................




Temporarilly the code will be DIODA indicating the deferred settlement as a result of the consolidation.


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## adobee (24 October 2007)

Can someone holding this fiill me in on how DIO is going ? the share price
changed with the change of consolidation ..  but looking at the chart it seems to have tanked and is now capital raising big volume just before the drop ?


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## Miner (24 October 2007)

The canadian dollar is probably weaker than A$ now.
The sophisticated investors at TSX can buy one DIODA share at $1.60 as subscription receipt which entitle them a share (now about A$2.15) plus half option.
It will further dilute the current share value too.
My question why DIO could not raise the fund in Australia or ask the share holders to participate as well?
Does not appear to be a fair dinkum to Aussie investors.

Regards


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## lienad (12 November 2007)

Hi - noticed no post on this one which was red hot last month - anyone have any news on where this is headed? I am long on this one.


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## Goldmann (16 January 2008)

They have been very quiet apart from some news in December... and all the speccies are copping abit of punishment at present, DIO seems to be going ok...


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## SM Junkie (27 February 2008)

Finally some movement on Dioro today, it ended 7.09% up, been patiently waiting for such a long time.

Seems the market likes the imformation about the new non-executive Director, Dr O'Dea, 

Impressive background:

- founder, president and CEO of Canadian listed companies Fronteer Development Group and Aurora Energy Resource

- both companies have become ranked among the Top 50 Strongest publicly traded companies in B.C. for their significant capital, liquidity and asset values.


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## eddyeagle (16 April 2008)

Does anyone know why Dioro continues to get hammered??!!!

I cant see any bad news results but it has fallen from $2.66 to 95c in the last 6 months!!!


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## tezz (17 April 2008)

Alot of stocks have been shot down, even with good ann. coming out,
Same with DIO, according to Fatprophets DIO has been busy with its operations, and now with a 1.99mill.oz gold resource,
A correction will eventually come, FP said buying DIO at this price is like buying gold at $46.
It will take awhile for the bull market to come back, DIO could fall alot lower due to fear and panic, these sellers trade on emotion, hold DIO


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## Miner (18 April 2008)

tezz said:


> Alot of stocks have been shot down, even with good ann. coming out,
> Same with DIO, according to Fatprophets DIO has been busy with its operations, and now with a 1.99mill.oz gold resource,
> A correction will eventually come, FP said buying DIO at this price is like buying gold at $46.
> It will take awhile for the bull market to come back, DIO could fall alot lower due to fear and panic, these sellers trade on emotion, hold DIO





DIO has been a good share and its directors are real good. 
However I believe they lost lot of capital when their spin off Loadstar become a falling star. LSR if you want to see. Most of the IPO went in the form of rights. DIO itself did not recover.
So it will be a while to see the recovery.
I for a change bought this share at low price and sold just prior to consolidation. It went down since then - never recovered but I could be wrong as I have not followed for long. 
Just my


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## wildmanchris (18 April 2008)

eddyeagle said:


> Does anyone know why Dioro continues to get hammered??!!!
> 
> I cant see any bad news results but it has fallen from $2.66 to 95c in the last 6 months!!!





Was pretty heavily traded when it was arounr 10 - 14 cents - but consolidation and nothing really happening in a weak market meant money was best spent else where I guess.

Fat Prophets loved it, but they will need to start to show some decent production and cash flow before it crawls back IMO.


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## Goldmann (18 April 2008)

yeah i hold and am very long on it... got in at 6c.. and basically saw it double, before retreating to where it is now... thinking of loading up again... its a producer now, and still it goes down... horrid.


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## Miner (30 April 2008)

DIO got a speeding ticket for driving very slow. THe share price then shot up from 83 cents to 93 cents within a day. On Monday it was about 1.21 .

No news. 

Probably it was opportunity today and it will come down again tomorrow.

Regards


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## Nicks (7 May 2008)

Had a good look through the financials before deciding to buy in some more and they look good. Cashed up, good working capital and fundamentally very sound. Looks like a winner to me.


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## eddyeagle (9 May 2008)

DIORO was up 24% today!!! What the??? No announcements! Anyone have any clues as to the sudden jump?


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## BlingBling (9 May 2008)

eddyeagle said:


> DIORO was up 24% today!!! What the??? No announcements! Anyone have any clues as to the sudden jump?




yes, people finally came to their senses! Which is about bloody time.. though, thanks for the buying opportunities!


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## desolator (9 May 2008)

smiles all round, happy coz LRF have a stake in this, all thought not to sure what exactly the extent of their investment is.. if any1 could shed some light on this much appriecitated!


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## lcl999 (9 June 2008)

Dioro has been falling steadily since late May. Down from a recent peak of over 1.35 to under 0.95. Anyone any idea why?

Or is it just lack of interest. Volume is right down too.


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## SM Junkie (9 June 2008)

Everything with Dioro is still very strong. They are financially sound and are just getting on with business.  I think they have not recovered from the last market downturn and given that gold prices are still well off their previous high there is not a lot of interest at the moment.  Still solid but a long term hold.


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## eddyeagle (13 June 2008)

DIO looked like it was making a recovery in Mid May - up around the $1.30 mark... Back down to 82 cents today  - this stock really does frustrate me!


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## lcl999 (29 June 2008)

There has been no news since the first gold pour a couple of weeks ago. Nevertheless the price has been diving. Why?


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## ans25 (29 June 2008)

I would say maybe because of the dropping price of Gold?!

Maybe a good time to top up perhaps as Gold will surely relive those high's we got a few months ago


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## metric (17 October 2008)

announcement out. has to do with the cleanup after a wall collapse. they say they are still on the way to making 90 million next year....

still trading very cheap. on other forums this ann hasnt even been ann'd...


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## J.B.Nimble (18 October 2008)

metric said:


> announcement out. has to do with the cleanup after a wall collapse. they say they are still on the way to making 90 million next year....
> 
> still trading very cheap. on other forums this ann hasnt even been ann'd...




Yes, the news that they had still managed 7,478 oz for the months in spite of the wall collapse was pretty reassuring. Going to be interesting to see their cash cost per ounce.


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## Goldmann (29 October 2008)

i must say up front "VERY LOW VOLUME"...

but DIO spiked nearly 70% today, %50 of which was after the bell?

anyone know something i dont???

insider trading perhaps??? a takeover?


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## SM Junkie (29 October 2008)

I've never seen such a huge rise in price in one day. Hopefully tomorrow will shed light on what this was about.


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## J.B.Nimble (30 October 2008)

SM Junkie said:


> I've never seen such a huge rise in price in one day. Hopefully tomorrow will shed light on what this was about.




Well they have talked about being cash flow positive early next year, and now with the big drop in the AUD translating to a big leap in the AUD gold price, that day may have come early... Don't forget that Frogs Legs was to have delivered 86.6 mill AUD nett cashflow based on 900AUD/oz gold, and what are we now...? This one has been forgotten for so long.


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## Goldmann (30 October 2008)

J.B.Nimble said:


> Well they have talked about being cash flow positive early next year, and now with the big drop in the AUD translating to a big leap in the AUD gold price, that day may have come early... Don't forget that Frogs Legs was to have delivered 86.6 mill AUD nett cashflow based on 900AUD/oz gold, and what are we now...? This one has been forgotten for so long.




ahhh no new news... no light shed... i merely think some idjit hit .50 instead of .40 with their late trade... 

oh well, i will continue to hold in memory of the glory days of $2... will talk you again in probably 3 months next time something interesting happens with this stock!


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## dmagnus (5 February 2009)

hmm the wall failed again... that can only be bad news for repaying their debts.... I doubt their budget to repay the debt in July 09 would have reflected this... wonder how the JV is really going?


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## Goldmann (5 February 2009)

yep - i got out of this one at the first sign of the 'geotechnical' event when it was .34.

glad to be rid of it


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## Squawkbox (2 April 2009)

*DIORO EXPLORATION*

I wonder whether somebody can suggest any reasons for the large price increase in DIO recently?  It has been a laggard for a long time.


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## SM Junkie (2 April 2009)

Just listening to the business news, apparently some of the largest gold miners are looking for opporunities, might have something to do with their performance today.  Can't say there was anything in their quarterly report (although positive) that would lead to such an increase.


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## J.B.Nimble (2 April 2009)

SM Junkie said:


> Just listening to the business news, apparently some of the largest gold miners are looking for opporunities, might have something to do with their performance today.  Can't say there was anything in their quarterly report (although positive) that would lead to such an increase.




Did we read the same report?

92 mill shares at 0.345 last sale when the report came out stacks up as 31.7mill mc
Production has finally turned cashflow positive (in spite of the geotechnical events at the HBJ pit etc). 
Revenue =    $A 24.7 mill revenue. 
Cash costs = $A 14.9 mill (790/oz x 18,896oz) Frogs legs @ 495/oz and improving...
Even with 3.1 mill thrown at capex and fixing pit walls, it would seem to be a fairly healthy cash flow relative to mc...

The wonder of it all is that even though we knew this day was coming, the market had been totally fixated on collapsing pit walls and lost sight of the fact that the Frog's Legs ramp up would eventually start earning a profit. Some very good upside from here imo.


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## Sean K (14 April 2009)

AVO takeover offer valuing DIO at 53c.

Good if you bought recently, for long termers, not so great perhaps.

I thought there would have been more bottom picking by those in a strong position recently...


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## shag (14 April 2009)

geez its a damn good result for fat profits, they had it as a buy at 55c over a yr ago. so only a ten odd pc loss over this period.
looks very very good compared to the rest of their portfolio......
like u could have put the dosh into yr matress and the cockroaches ate it, or buried it in the garden and it rotted.
and this sort of result when gold is so low at 1500 odd bucks....


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## Sean K (14 April 2009)

I'm not sure how good the deal is for DIO. It values their M&I resources at just $25 an ounce, which is at explorer levels really. 

Even though they're small you'd expect over $50 an ounce perhaps. 

Maybe I'm missing something. Maybe the ounces aren't that good....


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## J.B.Nimble (14 April 2009)

kennas said:


> I'm not sure how good the deal is for DIO. It values their M&I resources at just $25 an ounce, which is at explorer levels really.
> 
> Even though they're small you'd expect over $50 an ounce perhaps.
> 
> Maybe I'm missing something. Maybe the ounces aren't that good....




Not that good a deal really. It seems opportunistic as there has been a lot of frustration with this stock. The sp was on a sad trajectory even before the gfc. I'm not sure I understand why the market didn't love these guys just a little more. It just kept heading south throughout the ramp up and finally when they turn cashflow positive in comes a low ball offer. I think your $50/ounce would be fairer but I've taken my $ today and will happily play elsewhere


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## JTLP (14 April 2009)

As a holder of AVO i'm a little perplexed.

They recently raised capital for a paste plant or whatever (sorry been working and can't remember) and now they are chasing other companies. They haven't even officially come out with a cash cost per ounce yet (i did e-mail the MD and he did reply but i'm still skeptical until we see some concrete evidence) and to add another company into the mix will cost money (although they state this synergy will provide lots of $$$ saving benefits).

I suppose a positive is that AVO are targeting a producer and their resource base will increase dramatically. What are DIO's costs per oz etc?

Hopefully gold stays at a nice level in terms of AUD and I can hold these for the L/T (NCM? one can dream...)


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## eddyeagle (14 April 2009)

As a long term holder of DIO, I will be filthy if the takeover goes through at this price. 

From memory, Fat Prophets recommended this stock at around 15c back in 2007, before DIO had their 1:14 share re-structure. So a buy-in price of 15c was equal to a share price of $2.10 today. 

So the takeover price of 53 cents is around 25% of what I paid for this spud!


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## Rico (22 April 2009)

eddyeagle said:


> As a long term holder of DIO, I will be filthy if the takeover goes through at this price.
> 
> From memory, *Fat Prophets recommended this stock *at around 15c back in 2007, before DIO had their 1:14 share re-structure. So a buy-in price of 15c was equal to a share price of $2.10 today.
> 
> So the takeover price of 53 cents is around 25% of what I paid for this spud!




I should investigate further, but I think Fat Prophets have (or had) a vested interest in Dioro. They were plugging it so hard for so long. They either got completely sucked in and screwed up there analysis, or there was something dodgey going on. Either way, it does damage their reputation in my books.


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## happytown (26 May 2009)

dioro has released an ann stating that their principal financier (bnp paribas) has granted a time extension for their exisiting debt facility (out now to 31 march 2010)

sp currently down .015 to .645 on minimal volume

cheers


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## eddyeagle (29 May 2009)

Dioro has moved quite sharply up to 79c from the lows of 25c. 

They have said to REJECT the takeover offer from Avoca. 

Glad i held onto this one in the painful times! Things can change quite quickly!


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## JTLP (30 May 2009)

This isn't meant to sound like a downramp but:

DIO + KPMG = joke.

KPMG (Dioro's Auditors) value Dioro at $1.88 per share, a premium of 376% to the pre-ann price for Dioro. The market valued Dioro at 39.5 cents per share prior to AVO's takeover offer...surely there can not be such a discrepancy between the 2?

AVO are currently analyzing KMPG's statement but from reading the 1 page ann they seem fairly unimpressed with KPMG and Dioro's tactics. You could never expect to attain full value placed on the shares and AVO already placed a hefty premium on DIO's closing price. Also interesting to note a passage from KPMG's auditors notes:

KPMG, in their report, state that “in Australia, successful transactions are typically likely to complete within an acquisition premium range of 25 percent to 40 percent.” The premia offered by Avoca as set out in its Bidder’s Statement (using pre-announcement prices for both Avoca and Dioro shares) range from 34.2% to 58.2%. 

KPMG’s preferred value of $1.88 implies a premium of 376% to the pre-announcement price for Dioro.

I can see this takeover being a bit longwinded and drawn out sadly...


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## drillinto (1 June 2009)

Dioro (DIO) & Gold sector
Source: www.minesite.com
31 May 2009

Minews. Let’s start with gold because it really is starting to show its best as an inflation and paper-currency hedge. 

Oz. It certainly is, and that produced a number of strong performers among smaller gold stocks, but not a lot from the leaders. Silver Lake (SLR) was a star as investors started to understand the expansion plans and high-grade focus of the business. It added A14 cents over the week to close at a 12-month high of A70.5 cents, with A10.5 cents of that rise coming in active Friday trade. 
Takeover target Dioro (DIO) was another stock in strong demand as it launched its defence against Avoca (AVO). An expert’s report arguing that the all-shares offer which valued Dioro at A60.6 cents when launched was a country mile below Dioro’s real value of around A$1.88. That discrepancy saw Dioro add A16 cents to A79.5 cents. Interestingly, Avoca also rose, adding add A7c to A$1.80. 

Minews. That value gap between the market and the expert report is enormous. What’s the explanation? 

Oz. None really, just that the accountants at KPMG who wrote the expert report are saying the market is wrong. They’ve looked at the production and resource numbers under-pinning Dioro and determined that the company is worth between A$1.40 a share and A$2.28 with the mid-point being A$1.88, more than double what the market reckons. It is possible that a strict accounting view of a gold company’s value is out of step with a stock market in recovery mode, but that gap is so wide that it does have the potential to cause investors to take a fresh look at the entire gold sector.


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## JTLP (1 June 2009)

Thanks for that.

AVO rose alongside DIO as AVO now holds a decent chunk in DIO from memory.

Still can't get over that discrepancy by KPMG and the market. Seriously who are they kidding. Accept the offer and make a force in W.A.


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## eddyeagle (6 July 2009)

Increased offer today: 

To 1 Avoca Share for every 2.4 Dioro Shares, valuing each Dioro Share at 74.8 cents per share1;

Avoca’s increased Offer represents a premium of over 89% to the 39.5 cent closing price of Dioro Shares on 9 April 2009 (the trading day prior to the announcement of the Offer)1 and a premium of 19% to the 63 cent closing price of Dioro shares on 3 July 2009, the last trading day prior to announcement of the increase.


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## eddyeagle (21 July 2009)

Sydney - Monday - July 20: (RWE Aust Business News) - Dioro Exploration NL (DIO) has announced that it is currently engaged in advanced discussions with Northgate Minerals Corporation regarding a potential material transaction.

The Board of Dioro is of the view that the proposed transaction, if completed on the terms currently being contemplated is likely to be a superior transaction in value to the current offer from Avoca Resources Ltd (AVO).

Directors said details of the proposed transaction are likely to be announced within one week.

They reconfirmed their previous recommendation that Dioro shareholders should reject the current Avoca offer, which was extended until July 28 after Avoca confirmed it has received acceptances for only 2.71 per cent of Dioro shares since it opened its offer in May.


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## eddyeagle (21 July 2009)

Quite an interesting / entertaining few days for Dioro!

Firstly - DIO goes into a trading halt. 

Then - Avoca release this:

Avoca extends Offer period due to
questionable Dioro tactics
As you may be aware, Dioro Exploration NL (“Dioro”) has announced a trading halt pending release of a reserves increase for the Frog’s Leg gold project, owned 49% by Dioro.
The trading halt, which was announced on Friday afternoon, is required to be lifted on or before Tuesday 21 July 2009, the same day that the offer by Avoca Resources Limited (“Avoca”) (ASX:AVO) for all Dioro shares had been scheduled to close.
In Avoca’s view, Dioro’s trading halt:
•
may be an attempt by Dioro to discourage acceptances under Avoca’s offer; and
•
is unnecessary because Dioro, in its Target’s Statement released to the ASX on 28 May 2009, has already disclosed to the market an increased Frog’s Leg reserve of 489,745 ounces.



Then DIORO come back stating that their ore reserves at FL have increased by 45%!!!

Then they announce that they are currently engaged in advanced discussions with Northgate Minerals Corporation regarding a potential material transaction.


Great stuff! Hopefully the share-prices gets a further boost tomorrow!


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## Miner (2 August 2009)

DIO has suddenly became eye catchers for many gold miners : RMS and AVO.

surprisingly the market price of DIO is not catching up though both RMS and AVO have valued this share as more than $1. 

Also I do not see enough postings on this thread either 

I have two queries and appreciate  if some one could please assist.

If RMS is offering to buy DIO then what happens to those who already accepted the offer from AVO ?

Next question : what happens if Joe Blogg buys DIO  straight from market at 83 cents and then sell it back to AVO or RMS at $1. I am sure they are not stupid or the situation is not simple for every one to make 20 % on a sunny day.  Why DIO is not calling trading halt ?

Disclaimer : I previously held DIO (sold them) and bought   DIO on Friday again


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## arms (2 August 2009)

Once the offer from AVO was made unconditional, if you excepted that was it there was no pulling out of that acceptance, AVO now own your shares.

The share price at this stage reflects the one firm offer, AVO, and the share price settled roughly at the offer price.

At this stage RMS has said that it will be making the offer but no documents have been forthcoming and DIO holders have no way of accepting. I think once they firm it up, probably Monday the share price will reflect better pricing. I think RMS wanted to get their intentions known so AVO stopped getting to much of the company.

A long way to go in this, will AVO come back and match the latest offer and what will DIO directors say about it all.


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## SilverRanger (2 August 2009)

Looking at the closing prices on Friday (DIO: 0.83, AVO: 1.74 and RMS: 0.5), the market has priced it in as a gamble with 20% upside with 30% implied probability vs 9% downside with 70% implied probability, the odds will probably change on Monday though


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## LeeTV (13 August 2009)

*It's decision time for Dioro in takeover imbroglio*
_Bryan Frith | August 12, 2009 
Article from:  The Australian _
http://www.theaustralian.news.com.au/business/story/0,,25917023-16941,00.html

AVOCA Resources has clearly tired of waiting on the Dioro Exploration board to decide between the competing scrip bids of Avoca and Ramelius Resources.

Avoca yesterday declared its bid final, as to both the offer price and the offer period. The bid was due to close today but has been extended by a week. 

Given that relatively short time and the fact that there is no longer any prospect of Avoca further sweetening its offer terms, the Dioro board will now be forced to choose between the competing offers. 

It is now almost two weeks since Ramelius surprised by announcing an offer of two Ramelius shares for each Dioro share the day after the Dioro board recommended an increased offer from Avoca of one of its shares for each 2.3 Dioro shares. 

The Ramelius offer valued Dioro shares at $1, well above the 74.5c a share value of the enhanced Avoca bid. The Dioro responded by advising shareholders to take no action until they make a recommendation on the Ramelius offer, but added that based on the sharemarket price it may be a superior offer. 

The decision for the Dioro board should be which company's scrip offers the better prospects. 

Dioro shareholders would own 45.5 per cent of a merged Dioro-Ramelius but only 14 per cent of a combined Avoca-Dioro. That reflects not only the offer terms but the fact that Avoca is by far the more substantial company of the two. 

In terms of assets, Dioro holders would stand to gain more from the Avoca offer than the Ramelius alternative. In fact, acceptance of the Ramelius bid would involve a transfer of wealth from Dioro shareholders to Ramelius holders. 

Following the recent upgrade of the Frog's Legs joint venture, Dioro has reserves of 583,000 ounces, whereas Ramelius does not yet have any JORC compliant reserves; instead it has only 118,000oz of inferred and indicated (not even measured) at its Wattle Dam operation in WA, yet has begun underground development aimed at producing a single year's production of 70,000oz. 

Dioro has 2 million ounces of resources and on that basis would be contributing 95 per cent of the resources of a combined Ramelius-Dioro. But around 1.5 million ounces of those resources have been sterilised by two major pitwall collapses at the South Kalgoorlie project, which may now be worthless. 

If those resources were excluded, Ramelius would still be providing only 19 per cent of the resources. 

Avoca produced almost 53,000oz of gold in the June quarter at its Higginsville operation and is aiming to produce 160,000-200,000oz a year for at least the next eight years. Moreover, the Trident mine is open at depth raising the prospect of a much longer mine life. 

Acquisition of Dioro would lift Avoca to a 250,000oz-a-year producer and the company has ambitions to become the pre-eminent mid-tier gold company, producing 5000,000oz a year. 

If Dioro holders were to accept the Avoca offer, their implied share of Avoca's production would be 80,000oz, their implied share Avoca's reserves would be 80,000oz and the implied share of its resources would be 203,000oz. 

By way of comparison, their implied share of Ramelius' production would be 32,000oz (one year only), no reserves andtheir implied share of resourceswould be 54,000oz. 

On that basis, Dioro holders have more to gain by accepting the Avoca offer. 

Avoca's share price is at present depressed by its scrip offer, with short sellers active in the stock. At its present price of $1.72, its offer values Dioro shares at 74.8c a share. Dioro's independent expert conceded that if Avoca secured 100 per cent of Dioro, its share price would be re-rated and suggested a price range of $1.96-$2.22, with a preferred price of $2.10 a share. 

At $2.10 a share, the Avoca offer would value Dioro at 91c a share. At $2.20 a share the value would increase to 95.6c a share, which is much closer to the implied value of the Ramelius offer. 

Curiously, the Ramelius share price has not suffered as a result of its scrip offer, despite the amount of shares that would need to be issued. While the Ramelius share price dipped 1c to 51c yesterday, that still values its offer at $1.02 a Dioro share, or more than when the bid was first announced. 

Avoca argues that the Ramelius share price is heavily overvalued and there is a mismatch of asset base and market capitalisation. 

Assuming a gold price of $1130 a tonne, Ramelius' stated resources have a value of $134million, yet its market capitalisation is $112m. Avoca points out that Ramelius would need to convert its resources into reserves, complete all operational and capital development, all stoping and cover all overhead costs for zero dollars for Wattle Dam to have an intrinsic value of anything even remotely close to its current market value. 

Moreover, Avoca's offer is unconditional, it already owns 24 per cent of Dioro and has stated that it won't accept the Ramelius offer. 

Ramelius, therefore, cannot obtain 100 per cent, but it could satisfy its minimum acceptance of 50.1 per cent if the Dioro board were to recommend its offer. Apart from the fact that it raises the prospect of Dioro remaining listed with two holders owning at least 74 per cent of the company, it would also mean that neither Ramelius nor Avoca would be able to access the cashflows generated by Frog's Legs and South Kalgoorlie. 

That is likely to be of greater significance to the much smaller Ramelius, as Avoca already generates a strong cashflow from Higginsville. 

Ramelius is yet to lodge its bidder's statement, although there are suggestions it is poised to do so. Avoca is urging the Dioro board not to wait on that document, arguing enough is known for it to decide now which bid to support. 

That's because Avoca has given itself very little wriggle room. If acceptances over the next week take it to at least 50 per cent of Dioro, then its offer automatically extends for at least a further two weeks, and longer if Avoca wishes it. But if Avoca falls short of 50 per cent, then its offer is over. 

There are few large shareholders. Baker Steel owns 12.66 per cent, while Dioro's Frog's Legs joint venture partner, La Mancha, owns another 2 per cent, as does Mark Creasy, but much of the register is held by retail holders. 

Avoca has set itself a stiff task to reach 50 per cent within the next week, even if the target board maintains its recommendation, and a possibly herculean task if it recommends Ramelius. 

Ramelius last night attempted to make that task even more difficult by removing all conditions (including the 50.1 per cent minimum acceptance) other than FIRB approval. Avoca may yet rue that it did not extend the offer by at least two weeks.


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## SM Junkie (30 December 2009)

Guess Avoca's final bid was not the final bid after all.  Much more attractive offer with $0.65 in cash; and 0.325 Avoca shares., we will see what the DIO board says now. Glad I didn't take up the offer earlier.


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