Nedlands-based diversified explorer Dioro Exploration has acquired a highly prospective tenement package at the Penfold project located in the eastern goldfields and has commenced inital exploration.
Nedlands-based diversified explorer Dioro Exploration has acquired a highly prospective tenement package at the Penfold project located in the eastern goldfields and has commenced initial exploration.
Consideration for the acquisition of the tenements is the greater of 45 million Dioro shares (8.6 per cent of the diluted issued capital) or $3 million worth of Dioro shares based on the Dioro closing share price at completion.
Below is the full announcement:
Australian diversified explorer, Dioro Exploration NL (ASX: DIO) has commenced initial exploration at the Penfold project, after acquiring a 100% interest in the highly prospective eastern goldfields tenement package in Western Australia.
The acquisition of the Penfold Project took place after Dioro signed a final binding sale agreement on 26 October, 2006, with South Kal Mines Pty Limited and other related members of the Harmony Gold group of companies ("Harmony").
Consideration for the acquisition of the tenements is the greater of 45 million Dioro shares (8.6% of the diluted issued capital) or $3 million worth of Dioro shares based on the Dioro closing share price at completion. Dioro will also replace the environmental bonds on the acquired tenure.
The Sale Agreement is subject to a number of standard conditions precedent. Settlement is expected to occur in early 2007 following satisfaction of all of the conditions precedent.
The Penfold Project has 267,000 ounces of JORC compliant resources in thirteen prospects. It has historical production of 215,000 ounces from eight open pits.
The project covers approximately 80km of strike of six shear trends, including the highly prospective Zuleika, Wildcatters and Boulder-Lefroy shears.
Regional drilling commenced in November this year to test some of the new greenfield targets not previously recognised, as well as to follow-up some under tested existing targets.
The focus of this first round of exploration is to principally explore away from the known resources and deposits based on conceptual targets.
Dioro believes this is an excellent organic growth acquisition that gives it the opportunity to explore a 'sought after' tenement package prospective for both gold and nickel, to build on the existing resources of 267,000oz - and supplement the company's 49 per cent ownership of the Frog's Leg deposit."
Since signing the Heads of Agreement in July, Dioro has employed geological staff and reviewed all the available previous exploration, highlighting priority exploration targets.
To date, a total of 14, 575m of RAB and aircore has been completed on the Penfold Project since signing the agreement late in October 2006.
Drilling has targeted extensions to the Steinway and Stiletto prospects located on the Zuleika shear system as well as testing greenfield targets on the Binduli and Wildcatters trends.
Further information will be provided on the results of this work when the geologists return from the project and results are received. Final assay results are not expected until late January - early February 2007.
In addition to the drilling, Dioro has commenced detailed geological mapping of the project area, including re-logging drill spoil and building a structural interpretive geological model. Dioro has also commenced a review of the numerous geochemical datasets and regolith mapping to determine the effectiveness of sampling.
Amongst the conditions precedent, the Sale Agreement was subject to Dioro completing a legal and environmental due diligence of the tenement package to its satisfaction within a 28 day period.
On 23 November Dioro notified Harmony it had satisfied its due diligence condition precedent under the agreement.
