De Beira Goldfields Inc.
OTC Bulletin Board : DBGF
FRANKFURT : D1Q

De Beira Goldfields Inc.

August 16, 2006 03:51 ET

De Beira Announces the Appointment of an Exploration Manager and the Commencement of Drilling at the Minanca Mining Project in the El Oro Province of Ecuador

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Aug. 16, 2006) - DE BEIRA GOLDFIELDS INC. ("DE BEIRA" or the "Company") (OTCBB:DBGFE)(FWB:D1Q)(WKN:A0JDS0): De Beira Goldfields is pleased to announce that it has appointed an exploration manager, Mr Julian McDermott, to the large poly metallic Minanca mining property located in the highly productive Portovelo-Zaruma gold belt in the El Oro province of Ecuador. Mr McDermott will oversee the mining and exploration activities for the project, with the objective of increasing the current levels of production. Mr McDermott will also supervise exploration including drilling to increase the resource base to include the mineralised porphyry and stockwork systems which host the high grade veins currently in production.

De Beira is currently reviewing all geological data within the underground mining operations and dewatering the existing development. Currently the mine is clear to the third level, and will be clear to fifth level in the near future.

Recent sampling of the underground workings and surface grab and trench samples has confirmed the stock work and the porphyry system to host significant gold, silver and zinc mineralisation.

As a result of the encouraging sampling results, De Beira has prepared drill sites for an initial 6,000m drilling program to test the potential of the large mineralised stock work system, and to confirm the previous resource calculations. Drilling is scheduled to begin around the 25 August and De Beira is confident of intersecting significant zones of mineralisation early in the drilling program.

The Portovelo region is host to a 15 km long system of poly metallic epithermal veins. Locally the vein system covers an area approximately 7 km long by 1 km wide, with mineralisation hosted in highly fractured host rocks with quartz and carbonate filling.

The 45-hectare property has been continuously mined since 1845 and mining in the region dates back to the 1600's. Mineralisation on the Minanca property includes gold, silver, copper, zinc and lead occurring in quartz calcite veins within an andesite host rock. The mine has 3 principal veins, varying in widths from 0.6m to 5m and length between 500m and 800m, of which only the Abundancia vein is the focus of current mining activity. This vein system is postulated as originating from dilational fissure openings resulting from the strike slip fault movements associated with the Portovelo Caldera. Numerous stockwork veinlets separate the major veins, and these stockworks are currently undergoing evaluation for an open pit-mining scenario.

Previous production from the mine since 1905 has been estimated at 4.5 million ounces of gold, the bulk of which was mined by SADCO (South American Development Company) between 1895 and 1950. SADCO total production for this period was 7.6 million tonnes at a cut off of 14.4 g/t gold for a total production of 3.6 million ounces of gold and 12 million ounces of silver.

Current underground development consists of 1800m of rail on 3 levels, 400m of drives, a 90m shaft and a 60m shaft. Previous workers developed the mine down to 300m, however current operations are only focussing on the 10m, 20m and 30m levels. In addition there are 14 levels above the principal adit and 30 levels below.

The processing plant is located 3km south of the mine, and is currently utilising 2 ball mills, flotation cells, carbon absorption and electrolysis. The current through put is approximately 5,000 tonnes of ore per month though De Beira intends to increase this to 10,000 tonnes per month in the near future.

No drilling has been carried out in recent times. As part of the future development strategy De Beira intends to fast track drill target definition to test the further depth potential of the current vein systems and simultaneously examine the potential of open pit mining the stockworks. De Beira is currently working on a JORC compliant resource estimate.

DE BEIRA GOLDFIELDS INC.

Reg Gillard, President

About DE BEIRA GOLDFIELDS INC.

DE BEIRA is a Nevada based mineral exploration company. The Company has recently initiated a new program to evaluate undervalued assets for potential addition to its mineral claim portfolio.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains statements that plan for or anticipate the future, called "forward-looking statements". In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of those terms and other comparable terminology.

These forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements about: our market opportunity; revenue generation; our strategies; competition; expected activities and expenditures as we pursue our business plan; the adequacy of our available cash resources; our ability to acquire properties on commercially viable terms; challenges to our title to our properties; operating or technical difficulties in connection with our exploration and development activities; currency fluctuations; fluctuating market prices for precious and base medals; the speculative nature of precious and base medals exploration and development activities; environmental risks and hazards; governmental regulations; and conduct of operations in politically and economically less developed areas of the world.

Many of these contingencies and uncertainties can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to our most recent annual report on Form 10KSB and other filings made by us with the United States Securities and Exchange Commission for more detailed discussions of the contingencies and uncertainties enumerated above and the factors underlying the forward-looking statements. These reports and filings may be inspected and copied at the Public Reference Room maintained by the U.S. Securities & Exchange Commission at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information about operation of the Public Reference Room by calling the U.S. Securities & Exchange Commission at 1-800-SEC-0330. The U.S. Securities & Exchange Commission also maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the U.S. Securities & Exchange Commission at http://www.sec.gov.

We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

This press release is for informational purposes only and is not and should not be construed as an offer to solicit, buy, or sell any security.

Contact Information

  • De Beira Goldfields Inc.
    Reg Gillard
    Director
    +61 (08) 9240 6717
    +61 (08) 9240 2406 (FAX)