Dia Bras Exploration Inc.

Dia Bras Exploration Inc.

August 23, 2010 10:30 ET

Dia Bras Development Drift Reaches El Gallo Deposit at the Bolivar Property

MONTRÉAL, QUÉBEC--(Marketwire - Aug. 23, 2010) - Dia Bras Exploration Inc. (TSX VENTURE:DIB) is pleased to report that its 240-m-long underground development drift has reached the El Gallo deposit at the Bolivar Property in Chihuahua State, Mexico. Development towards this deposit began from the San Francisco zone of the Bolivar Mine, which is to the northwest of El Gallo.

The El Gallo deposit is not part of the Bolivar Mine. It is distinctly different in mineralogy, metal content and mineralization style. Development of the copper-mineralized zone at the southwestern end of the El Gallo deposit in preparation for mining has begun, with ramps being driven above and below the deposit.

"This is an exciting development for us, which shows the great exploration potential of El Gallo and the ability of our staff to keep discovering and providing significant high-grade material to our Malpaso Mill," stated Daniel Tellechea, President & CEO. "Production from this future new mine, El Gallo, together with production from the Bolivar Mine, is planned to reach 1,000 tonnes per day by the time our new Piedras Verdes Mill is commissioned. Our production costs will be almost halved with the new mill's operation, and we are proceeding rapidly to develop the mineralized areas that will provide feed to the new mill."

The El Gallo zone is a 550 m long by 40-150 m wide area that contains significant copper mineralization in a skarn zone of the Bolivar mineralized system. Seven drill holes plus continuous channel sampling at 2-metre-intervals along the side panels of the El Gallo 3 adit provide the control for the section shown in Figure 1 http://www.diabras.com/en/newscenter/2010/elgallo_seccion_n60e.jpg. It is important to note that this zone is open down dip and that exploration and development in that direction is expected to increase the mineralized volume significantly.

Figure 1 shows a longitudinal section from the western cliffs of El Gallo to the El Gallo 3 adit driven into the skarn horizon. Table 1 below shows the true thicknesses and grades of copper mineralization along this section. Steep topography prevents complete infill drilling of the horizon, but cliff exposures indicate the zone is continuous over the 500 m length shown in the longitudinal section. The average true thickness is 13.6 m, and with an average width of 80 m and a length of 500 m, the mineralized volume is 544,000 cubic metres.

Block Drill Hole Thickness,
m (true)
Cu% Zn% Au g/t Ag g/t
208 DB07B208 8.0 1.98 0.0 0.11 28
202 DB07B202 15.8 1.04 2.39 0.04 18
154 DB05B154 9.0 2.10 0.0 0.10 46
234 DB08B234 21.0 2.80 0.0 0.50 53
240 DB08B240 7.5 4.50 0.0 3.70 383
242 DB08B242 15.0 3.60 0.05 0.40 63
264 DB08B264 13.0 0.45 1.58 0.03 71
El Gallo El Gallo 3 adit 20.0 4.00 0.22 nd* 30

*not determined

Method of Analysis

Samples were prepared at the ALS Chemex lab facility in Chihuahua, Mexico, and analyzed by ICP and AA methods at their facilities in Vancouver, Canada. Diamond drill samples sent for analysis consisted of half NQ-size and BQ-size diamond core split on site, prepared by the ALS Chemex sample preparation laboratory in Chihuahua, Mexico, and assayed for Au by 50 g fire assay with AA finish, and for Ag by AA on 50 g split sample at the ALS Chemex North Vancouver Laboratory. Assays for Pb, Zn and Cu are processed by Induction Coupled Plasma (ICP) at ALS Chemex.

Quality Control

The quality assurance-quality control (QA-QC) of Dia Bras has been described in detail in both RPA's NI 43-101 reports of December, 2006, at Cusi and October, 2005, for Bolivar.

The technical content of this news release has been approved by Thomas L. Robyn, Ph.D., CPG, RPG, a Director of Dia Bras, a Qualified Person as defined in NI 43-101.

About Dia Bras

Dia Bras is a Canadian exploration mining company focused on precious and base metals in Chihuahua State and other areas of northern Mexico. The Company is committed to developing and adding value to its most advanced assets – the Bolivar Property and the Cusi Property. The Company's shares trade 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 which 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Daniel Tellechea
    President & CEO
    Dia Bras Exploration Inc.
    Karl J. Boltz
    Vice President, Corporate Development
    Dia Bras Exploration Inc.