Dia Bras Exploration Inc.

Dia Bras Exploration Inc.

December 21, 2010 10:31 ET

Dia Bras Begins Development of New High-Grade "La Narizona" Zinc-Copper Deposit at the Bolivar Property

MONTRÉAL, QUÉBEC--(Marketwire - Dec. 21, 2010) - Dia Bras Exploration Inc. (TSX VENTURE:DIB) ("Dia Bras") (the "Company") is pleased to report that it has initiated development of the La Narizona mine at its wholly owned Bolivar Property after recent drilling confirmed the continuity of high-grade zinc-copper mineralization in this area. This deposit was first drilled in 2007 and 2008 by the Company with good results. 

The La Narizona deposit is not part of the Bolivar Mine. It is located 1,000 m southeast of the Bolivar Mine and is southeast of the El Gallo deposit. Development of the zinc-rich deposit will allow production of mineralized rock that will be sent to the Malpaso Mill while the Piedras Verdes Mill is under construction and then to the Piedras Verdes Mill once operations commence next year. 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.

"This development is part of our long-term plans to increase our resource base and continue to develop new high-grade areas," stated Daniel Tellechea, President & CEO. "Production from this future new mine, La Narizona, together with the production from the Bolivar Mine and the El Gallo deposit, 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 high-grade discoveries at La Narizona and other areas in our Bolivar Property are enhancing our cash-flow projections and investment returns, as they are increasing our earlier head grade estimates for our new, on-site, Piedras Verdes Mill."

The La Narizona deposit is exposed on a broad nose on the southwest side of the El Val ridge and is one of several zinc-copper deposits known in the ridge. Eight drill holes have been completed in the body for which assay results have been received; three of the holes were drilled in previous campaigns and their results have been published earlier. These eight holes provide the control for the section shown in Figure 1 (http://www.diabras.com/files/media/13832_Narizona%20SecTr215%20(5%20-%20W).pdf).

Figure 1 shows a cross section from the nose where the La Narizona mineralization crops out to the down dip projection of the mineralization. Table 1 below shows the true thicknesses and grades of mineralization from the 2010 holes.

Table 1. La Narizona – Selected 2010 Drill Hole Assay Data

Drill Hole From (m) To (m) Core Length (m) True Length (m) Cu% Zn%
DB10B338 30.5 37.8 7.3 7.1 0.4 8.2
DB10B340 42.5 42.8 0.3 0.3 5.1 15.2
49.2 51.9 2.7 2.7 0.7 6.4
DB10B342 55.4 57.6 2.2 2.1 1.4 10.7
DB10B343 45.1 54.1 9.0 8.1 0.9 7.3
DB10B344 36.0 50.4 14.4 12.9 1.2 12.8
Incl. 36.0 43.2 7.2 6.5 0.6 20.3

Table 2 below shows the data from three holes that have been previously published.

Table 2. La Narizona – Previously Published Drill Hole Assay Data

Drill Hole* From (m) To (m) Core Length (m) True Length (m) Cu% Zn%
DB07B215a 42.7 50.6 7.9 7.4 0.8 13.1
144.5 148.8 4.3 4.0 0.2 6.8
DB08B236b 38.8 52.7 16.7 16.1 0.3 9.4
Incl. 38.8 45.7 6.9 6.7 0.6 17.0
DB08B239b 49.2 53.5 4.3 4.2 0.7 5.5

Note a: published October 18, 2007
Note b: published April 8, 2008

Quality control

The quality assurance-quality control (QA-QC) program employed by 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, and 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 pursuing the development and exploration of its most advanced assets – the Bolivar Property (copper‐zinc‐silver) and the Cusi Property (silver) and is exploring several precious metal targets such as La Cascada project at the Bolivar Property, the Las Coloradas project at Melchor Ocampo (Zacatecas State), the Bacerac Property (Sonora State) and the La Verde project at the Batopilas Property (Chihuahua State).

The Company's shares trade on the TSX Venture Exchange under the symbol "DIB".

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

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

  • Dia Bras Exploration Inc.
    Daniel Tellechea
    President & CEO
    1 (866) 493-9646
    Dia Bras Exploration Inc.
    Karl J. Boltz
    Vice President, Corporate Development
    1 (866) 493-9646