Dia Bras Exploration Inc.

Dia Bras Exploration Inc.

December 11, 2009 10:48 ET

Dia Bras Continues to Expand Development at its Bolivar Cu-Zn Project

MONTREAL, QUEBEC--(Marketwire - Dec. 11, 2009) - Dia Bras Exploration Inc. (TSX VENTURE:DIB) is pleased to announce that it is expanding development of the Guadalupe and Fernandez Extension zones of the Bolivar mine with the objective of increasing shipment of high-grade copper-zinc rock to its Malpaso mill. Commenting on the recent results, Daniel Tellechea President and CEO stated, "The increase in throughput and grades from our pilot mining operations in the recent weeks, coming from both the Guadalupe and Fernandez extension zones, are supporting further exploration and development of the Bolivar mine and provide support for our plans to build a new mill on site in 2010." These zones are within the prolific Fernandez Trend that produced about 100,000 tonnes or rock averaging 3.5 % Cu and 30% Zn (these are historical figures and not 43-101 compliant).

Mining in the Guadalupe body is currently being advanced from underground workings at Levels 3 & 7 where high grade zones are associated with a granodioritic dike. Drilling and drifting continue to follow the margins of the dike and frequently encounter additional zones of massive sulfide mineralization. Mineralized rock from this program is shipped to Malpaso at a rate of 350-500 tonnes per day and is being processed as part of a pilot mining program designed to obtain critical metallurgical and commercial data for a pending commercial operation.

A ramp (R-997-S) is being driven to Level 6.5 at the Fernandez Extension in order to provide access to high grade mineralization found in drill holes below the current workings, as shown in the accompanying longitudinal and cross sections(http://www.diabras.com/en/newscenter/2009/pr_2009_12_10_maps.pdf). Mining of the Guadalupe 1 zone over the past six months has demonstrated that the high grade zone is extensive and is still open to the southeast and to depth. The Fernandez Extension is being cross-cut both to the northeast and to the southwest, as shown in the sections to reach mineralization encountered by drill holes on either side of the zone. Drilling and cross-cutting of the Fernandez Extension suggest that the mineralized zone has rough dimensions of 40 m wide horizontally, about 60 m in height, and 180 m in strike extent. Drill intercepts within the Fernandez Extension body indicate that portions of this volume may contain high grade, massive sulfide zones.

The Guadalupe 2 target zone has not yet been drilled but its location is inferred from geologic projections and the mine geologist's 13 years of experience at the Bolivar mine. This target will be drill tested in the New Year.

Assay results from drill hole DB09BM229 support the interpretation that massive ore continues below level 6. The hole cut massive ore at the southeast end of the known mineralization at the Fernandez Extension and 10 metres below the existing drift. Results are as follows:

Hole ID From (m) To (m) Core Estimated Cu % Zn % Au Ag
Inter- True Width g/t g/t
val (m)
DB09BM229 127.3 128.3 1.0 1.0 12.35 16.30 0.290 84
128.3 129.2 0.9 0.9 19.39 6.20 0.850 203
129.2 130.9 1.7 1.7 2.06 2.84 0.080 24
130.9 132.1 1.2 1.2 7.79 36.97 1.070 198
132.1 133.3 1.2 1.2 12.55 11.25 0.160 92
Total Width
and Average
Grades 6.0 6.0 9.62 14.10 0.444 109

Pilot Mining

In preparation for commercial mining, the Company has been operating the Triunfo circuit of the Malpaso mill in order to make the necessary adjustments to optimize Cu-Zn recovery. Results from November, 2009, demonstrate some of the improvements made in the mill. Recovery of Cu and Zn in November were 89.8% and 90.5%, respectively, while for 2009 to date they were 87.3% and 89.0%, respectively. These figures represent a 2.5% improvement in Cu recovery and a 1.5% increase in Zn recovery during this year.

Concentrates produced in this program are sold to Marc Rich Int'l. pursuant to standard purchase contract.

New Mill update

Dia Bras plans to expand copper-zinc production from the Bolivar property in late 2010 by installing a new mill at the mine site. When the Company's new Bolivar mill is commissioned, operational costs will be reduced, with the transport distance for mineralized rock cut by over 95% and only a downhill haul of four kilometres to the Company's wholly-owned mill.

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. Diamond drill samples sent for analysis consisted of half NQ-size and BQ-size diamond core split on site, prepared by the ALS Chemex sample preparation laboratory in Chihuahua, Mexico, and 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. Assays for Pb, Zn and Cu are analyzed by Induction Coupled Plasma (ICP) at Chemex.

Quality control

The quality assurance-quality control (QA-QC) of 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., RPG, CPG and Director of Dia Bras, a Qualified Person as defined by 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".

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