Dia Bras Exploration Inc.

Dia Bras Exploration Inc.

October 11, 2007 08:30 ET

Dia Bras Achieves Record Production Value of US$8.0 Million from Bolivar Pilot-Mining Program in Third Quarter 2007

MONTREAL, QUEBEC--(Marketwire - Oct. 11, 2007) - Dia Bras Exploration Inc. (TSX VENTURE:DIB) reports third quarter net estimated smelter production value from its Bolivar pilot-mining program of US$8.0 million for a cumulative amount of US$18.0 million for the nine month period ended September 30, 2007. This sets a record production value for a three month period since inception of pilot mining program in 2005.

Increased production value is the result of the largest quarterly throughput at the Company's Malpaso milling facilities. During the quarter, the Company processed 34,841 DMT of material averaging grades of 7.70% Zn and 1.37% Cu. Cumulative production of 93,095 DMT for the nine month period ended September 30, 2007 averaged 6.66% Zn and 1.29% Cu. Quarter-to-quarter and 9-month to 9-month comparisons are shown in the table below.

During the quarter, 76% of the Bolivar material was processed in the new Triunfo circuit and the remaining portion in the Malpaso circuit. Combined recovery rate was 88.55% for zinc and 81.71% for copper. Overall, 4,121 DMT of zinc concentrate and 1,450 DMT of copper concentrate were produced during the quarter.

During the quarter, direct operating cash costs amounted to US$3.7 million compared to US$2.7 million for the same period in 2006. The increase in costs is mainly attributable to direct costs of increased tonnage of material transported from the Bolivar site and processed at the Company's Malpaso milling facilities. The operating cash flow was used for the Company's development and exploration activities.

Total development costs on the Bolivar project amounted to US$0.6 million during the quarter. Development work to access the Selena and Titanic zones, part of the Fernandez trend, was completed during this quarter, which has resulted in higher-grade material being sent to and processed at the Malpaso milling facilities. "We are now processing material from the Selena and Titanic zones with a marked increase in mill feed grade" says Dr. Thomas Robyn, the Company's Executive Chairman.

Bolivar Pilot-Mining Program - Q3-2007

Cumulative 9 months
Q3-2007 Q3-2006 2007 2006
Tonnes processed 34,841 23,588 93,095 68,633
Grade zinc 7.70% 9.63% 6.66% 11.44%
Grade copper 1.37% 2.12% 1.29% 2.27%
Zn Recovery 88.55% 91.96% 87.03% 91.98%
Cu Recovery 81.71% 85.96% 80.61% 81.29%
Average price zinc per pound, US$ $1.46 $1.54 $1.56 $1.29
Average price copper per pound, US$ $3.51 $3.53 $3.22 $2.96

Tonnes zinc concentrate produced 4,121 3,504 9,363 12,288
Tonnes copper concentrate produced 1,450 1,497 3,497 4,331
Total tonnage of concentrate in
the period 5,571 5,001 12,860 16,619
(in US$ millions)(1)
Estimated Net smelter production
value - zinc $5.2 $4.4 $11.9 $12.5
Estimated Net smelter production
value - copper 2.8 2.8 6.1 6.8
Total net smelter production value 8.0 7.2 18.0 19.3

Operating cash costs 3.7 2.7 10.9 7.4
Direct operating cash margin $4.3 $4.5 $7.1 $11.9
(in US$)(1)
Production value/DMT $227.85 $312.00 $193.10 $281.38
Operating cash costs/DMT 106.45 115.00 116.62 114.72
Direct operating cash margin/DMT (2) $121.40 $197.00 $76.48 $166.66

(1) Non-GAAP measures: The Company reports production value, operating cash
costs, production value per tonne, direct operating cash costs per
tonne and operating cash margin before amortization per tonne even if
it is a non-GAAP measure to inform about the approximate value of the
quarter sales, isolate the measure of pilot-mining direct operation
costs activities less amortization and depreciation. The Company
believes this is useful supplemental information however it should not
be considered as a substitute for measure of performance prepared in
accordance with GAAP.

(2) Before amortization

The Company's total production of concentrate is sold to MRI Trading AG (MRI), a Swiss-based, privately owned commodity trading company, pursuant to a standard concentrate purchase agreement that was renegotiated in May 2007. Total billings to MRI during the quarter amounted to US$6.2million which consisted only of provisional billings on the period shipments to MRI. Cumulative billings for the nine month period ended September 30, 2007 amount to US$15.7 million compared to US$21.4 for the same period in 2006.

The pilot-mining program provides essential data on costs, logistics, grade, recovery and metallurgy that will serve for a feasibility study on the Bolivar property. The objective of the program is to generate sufficient cash flow from zinc and copper concentrate production to help finance development and exploration at the Bolivar mine and elsewhere on the Bolivar project.

It is important to note that Bolivar is not at a commercial production stage. The completion of a feasibility study is required to confirm the economic viability of a property before it is brought into commercial production. The Company expects to complete its exploration program on the Bolivar property and extensions in order to start a feasibility study in 2008.

About Dia Bras

Dia Bras is a Canadian exploration mining company focused on precious and base metals in the State of Chihuahua, in northern Mexico. The Company is committed to developing and adding value to its assets - the Bolivar copper-zinc project and the Cusi silver mining camp. The Company trades on the TSX Venture Exchange, under the symbol "DIB".

Forward-looking statements: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in
such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Dia Bras Exploration
    Thomas L. Robyn
    Executive Chairman
    514-393-8875, ext. 241
    Dia Bras Exploration
    Rejean Gosselin
    514-393-8875, ext. 241
    Sun International Communications
    Nicole Blanchard
    Managing Partner