De Beira Goldfields Inc.
FRANKFURT : D1Q
OTC Bulletin Board : DBGFE.OB

De Beira Goldfields Inc.

August 23, 2006 04:19 ET

De Beira Announces that it has Signed an Agreement over the Condoroma and Suyckutambo Project Areas in the Cuzco Region of South Peru

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Aug. 23, 2006) - DE BEIRA GOLDFIELDS INC. ("DE BEIRA" or the "Company") (OTCBB:DBGFE.OB)(FWB:D1Q)(WKN:A0JDS0) is pleased to announce that it has signed an agreement with the privately owned, Goldplata Group of companies over the Condoroma and Suyckutambo project areas in the Cuzco region of South Peru. Recent sampling of the project areas by De Beira provided the following results.

Surface grab samples from the historical mine area at the Condoroma Project produced the following results:



CN1 - 1,476g/t Silver, 4.02% Lead and 1.34% Zinc
CN2 - 1,325g/t Silver, 5.48% Lead and 1.37% Zinc
CN3 - 1,325g/t Silver, 1.33% Lead and 1.14% Zinc
CN6 - 5.14g/t Gold, 146g/t Silver, 8.06% Lead and 3.48% Zinc
CN10 - 22.4g/t Silver, 5.82% Lead and 1.36% Zinc

Grab samples from the vein systems at the Suyckutambo Project produced
the following results:

ST1 - 1.25g/t Gold and 78.2g/t Silver
ST2 - 8.44g/t Gold and 366g/t Silver
ST3 - 0.98g/t Gold and 84.7g/t Silver
ST4 - 4.71g/t Gold and 225g/t Silver
ST6 - 9.78g/t Gold and 470g/t Silver
ST8 - 6.85g/t Gold and 312g/t Silver
ST9 - 3.11g/t gold and greater than 100g/t Silver


The Condoroma silver district, containing the historical Condoroma mine and located in the general vicinity of Tintaya at an altitude of 4,600m has been mined for silver since the Spanish colonial days. Several veins are visible within the Condoroma property though the historical mining focus was on 3 main vein systems, the Bonanza Vein, Ramil Vein and Santa Rita-Mercedes. The principal elements are silver with associated minor gold, and lead and zinc. The veins strike approximately N35-45 degrees west with a 60 to 90 degree southerly dip. The NE striking Santa Rita Vein intersects the Mercedes vein in an area, which the Company believes has the potential to host significant mineralisation. The numerous stock work veinlets within the system were tested with limited sampling by previous workers and show the veinlets to also be mineralised.

The highly encouraging results from the grab samples suggest the system may be host to a polymetallic deposit.

Mineralisation is hosted in volcanic intrusives of the Tacaza Group. Mineralisation style is epithermal veins of quartz-calcite-siderite-rhodochrosite gangue and pyrite-galena-sphalerite sulphides with manganese oxides and minor gold and electrum.

De Beira believes that the Condoroma property has the potential to be a large tonnage polymetallic deposit.

The Suyckutambo deposit also has had a history of mining dating back to colonial times. Recent activity saw mining of the area by Cia De Minas del Peru (MHC) between 1945 and 1965 with a 150 Tpd plant through which 1M tonnes was treated for 9.03M ounces of silver and 125,400 ounces of gold. The grades vary during the mine life of this time and eventually water inflow stopped the mine. De Beira believes that significant ore remains below the level of previous workings.

The commercial arrangements for Condoroma and Suyckutambo project areas are identical. De Beira can earn a 65% interest in each project area by sole funding exploration expenditure of US$4 million over a three year period. $500,000 expenditure is required before De Beira can withdraw from the arrangement. After earning a 65% interest, De Beira can elect to increase its interest to 70% by funding expenditure to bankable feasibility study stage or a further US$6 million in expenditure, whichever occurs first over a three year period. De Beira would be required to pay a 2% NSR royalty on any production in the future.

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 / 9240 2836
    +61 (08) 9240 2406 (FAX)
    www.debeira.com