Dia Bras Exploration Inc.

Dia Bras Exploration Inc.

December 17, 2009 11:18 ET

Dia Bras Pours the First Silver Dore Bar From Cusi Rock

MONTREAL, QUEBEC--(Marketwire - Dec. 17, 2009) - Dia Bras Exploration Inc. (TSX VENTURE:DIB) is pleased to announce that it has produced the first silver dore from the cyanide leaching circuits at its Malpaso mill. Construction of the leach circuits began in August, and the first leaching of mill tailings commenced during late November.

"This is an exciting step forward for us", said Daniel Tellechea, President of Dia Bras. "With the leaching circuits operational, our recovery of silver will be increased significantly, based on our metallurgical testing and this pour."

The photo below shows the first bar (http://www.diabras.com/en/newscenter/2009/dorebar.jpeg), which is held by Daniel Tellechea, President. Philip Renaud, Chairman of Dia Bras is to his left, while Thomas Robyn, Director, is to his right.

The bar weighs 13.23 kg and contains 42.6% silver (about 172 ounces of silver), 32.4% lead, 6.0% copper, 1.7% zinc, and 17.3% other metals. The low gold content in the bar, 3.5 g/t, reflects the low gold content of the Cusi mineralization. These assays were prepared and analyzed at the Company's lab at its Malpaso mill; check assays will be analyzed by ALS Chemex.

The metallurgical balance indicated by these results is as follows: recovery of silver by flotation method was 68.26%, and an additional 12.19% was recovery from the tailings, resulting in an overall silver recovery of 80.45%. Management is confident that as the leaching circuits are adjusted with further operation, silver recovery will improve, as this result is in the lower part of the range of the 80-85% recovery indicated by metallurgical testing. In addition, these adjustments should increase the silver content in the dore bars.

The company currently has two vats in operation, and an additional two vats will be added to the system. Construction of the new vats is scheduled to begin in early January and will be completed within a month. Additional vats will be added immediately after those are constructed, with the expectation that six vats will be operational by the end of March, 2010.

Each vat has a design capacity of 400 tonnes of tailings and has a one-week cycle for leaching, resulting in 1,600 tonnes per month capacity for each vat. With four vats operational, the system can process 6,400 tonnes of tailings per month. With six vats operational, one will be used as a reservoir, and five vats would process tailings, resulting in a monthly capacity of 8,000 tonnes per month.

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