Dia Bras Exploration Inc.

Dia Bras Exploration Inc.

December 16, 2009 13:21 ET

Dia Bras Drills More High Grade Silver at Cusi Project and Gives Outlook for 2010

MONTREAL, QUEBEC--(Marketwire - Dec. 16, 2009) - Dia Bras Exploration Inc. (TSX VENTURE:DIB) is pleased to report the results of drilling of the Veta del Contacto target at its Cusi project. The drilling was conducted to test the un-mined portions of the vein above and below old workings.

Veta del Contacto is one of several veins within a network of veins centered on the Promontorio mine. Several of these veins were partially mined by prior operators, mainly during the 1930s; historical records of production, however, are incomplete. Dia Bras' work since 2007 has shown that large portions of the veins have not been mined.

The accompanying map and cross sections show the relationships between the mined-out portion of Veta del Contacto and Dia Bras drill holes. The table below shows the results from several drill holes:

Hole ID From (m) To
Core Interval (m) Estimated
True Width (m)
Ag (g/t) Pb (%) Zn (%) Zone
DC09B235 101.20 102.00 0.80 0.60 1,585 1.91 0.40 V. del Contacto
DC09B237 110.70 113.00 2.30 1.40 464 0.15 0.16 V. del Contacto
DC09B239 171.70 175.00 3.30 1.00 635 0.08 0.10 V. del Contacto
DC09B244 188.30 190.70 2.40 0.75 2,308 0.46 0.99 V. del Contacto
DC09B247 184.35 190.85 6.50 1.91 570 0.91 0.40 V. del Contacto
DC09B250 95.30 98.00 2.70 2.00 Barren Barren Barren Cusi Fault
DC09B251 113.60 115.70 2.10 1.80 Barren Barren Barren Cusi Fault
DC09B257* 56.10 59.20 3.10 2.00 418 0.06 0.10 Qtz Vein
  59.20 61.85 2.65 1.50 652 0.17 0.40 Fault Zone
  215.60 217.50 1.90 1.00 268 0.39 0.23 V. del Contacto

* Assays from Dia Bras' Malpaso lab; ALS Chemex assays are pending

Commenting on these results, Mr. Daniel Tellechea, President of Dia Bras, stated, "The Promontorio mine is the second silver producing operation that we want to develop to ship mineralized material to our Malpaso mill. Together with the Santa Eduviges mine, Promontorio should increase silver production for Dia Bras during 2010-2011. These results confirm the continuation laterally and at depth of rich veins and underscore the exploration potential of Cusi's Promontorio area. Now that we have the cyanidation recovery circuits operational, we can, based on our metallurgical testing, achieve 80-85% recovery of silver by a combination of recovery by flotation and cyanidation methods."

2010 Cusi Project Exploration Outlook 

Three surface drill rigs are now drilling various targets on the property. The first rig is conducting development drilling at the San Antonio-Santa Rosa area where 850 m of core drilling are planned. 

The second rig is drilling the Veta del Contacto vein and has encountered a previously unknown vein above Veta del Contacto. Several holes will be drilled to define this new vein, and the rig will then be moved across the valley to drill deeper holes below the old Veta del Contacto stope where earlier holes have encountered kilo levels of silver (see table above).

The third rig is conducting development drilling of the upper El Gallo vein of the Promontorio mine, with about 3,700 m planned for the program. The results of this drilling will guide the mine plan for this area. The ramps previously developed by Dia Bras allow relatively quick development of this vein, which has only been mined to a minor extent. The objective is to have the Promontorio mine developed sufficiently by late 2010 to initiate pilot mining that is expected to produce an additional 250 tonnes per day of mineralized rock during 2011, which will be shipped to the Company's Malpaso mill for processing and complement the production from Santa Eduviges.

The "alphabet" veins of the Promontorio mine (vein C, H, J, K, etc.) that intersect the main Promontorio vein are mined out above Level 7 but only for a strike distance of about 60 m, where grades were apparently higher adjacent to the Cusi fault. There is significant un-mined lateral extension to these veins, as revealed by the Dia Bras ramps and drilling.

After drilling at Veta del Contacto is completed, the rig will be moved to La India, probably late in the second quarter of 2010, where 2,500 m in 8-10 holes are planned. The drilling will be conducted after the area is mapped and sampled, which should be completed during the first quarter. The rig will then be moved to San Juan, where six holes totaling 1,000-1,200 m are planned.

An area located about 3 km NW of the San Juan deposit, La Matulera, will be explored during the third quarter by soil sampling and reconnaissance mapping. This area is on a mesa-like area that contains small hills that are the result of silicified bedrock being resistant to weathering. Abundant quartz vein float litters the hillsides, and the vein textures indicate that the vein material was eroded from veins high in the epithermal system, above the precious metals zone. This is a low cost program that has the objective of identifying drill targets in a previously unexplored area.

In addition, two underground drill rigs will be used in the Santa Eduviges and Promontorio mines to provide additional data for mine planning.

43-101 Update

Dia Bras has contracted with Geostat Systems International, Inc. of Montreal to update the 43-101 report that Geostat completed in June, 2008. The report stated that the Santa Eduviges and Promontorio deposits contained Measured + Indicated Resources of 234,000 tonnes containing 1,413,260 ounces of silver and Inferred Resources of 1,394,000 tonnes, containing 8,434,810 ounces of silver. The full report is available on Dia Bras' web page www.diabras.com .

The updated 43-101 report is expected to be completed during the second quarter of 2010.

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. Samples are 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. Samples assayed for Pb, Zn and Cu are analyzed 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 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., RPG, CPG and 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 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". 

For further information on Dia Bras visit www.diabras.com

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 release.

Forward-looking statements

This news release contains certain statements that constitute forward-looking statements. Forward-looking information includes, but is not limited to, information concerning Dia Bras' 2009 guidance respecting pilot-mining production, and potential plans for Bolivar and Cusi projects. Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in the mining industry including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties or shortages of labour or interruptions in production; actual rocks mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of pilot-mining activities and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties. Refer to "Risk and Uncertainties".

Forward-looking information is, in addition, based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long-term price of zinc, copper, lead and silver; the regulatory and governmental approvals for the Company's projects and other operations on a timely basis; access to financing, appropriate equipment and sufficient labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Although the forward-looking statements contained in this MD&A are based upon what management believes to be reasonable assumptions, the Company cannot guarantee that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this MD&A, and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except as required under applicable securities regulations.

Contact Information

  • Dia Bras Exploration Inc.
    Daniel Tellechea
    President & CEO
    514-393-8875 ext. 241
    Dia Bras Exploration Inc.
    Karl J. Boltz
    Vice President, Corporate Development