Dia Bras Exploration Inc.

Dia Bras Exploration Inc.

October 05, 2005 10:07 ET

Dia Bras Cuts 10.7 Meters of 26.8% Zinc at Bolivar

MONTREAL, QUEBEC--(CCNMatthews - Oct. 5, 2005) - Dia Bras Exploration (TSX VENTURE:DIB) today announced that hole DIA-135 intersected 10.7 metres grading 26.80% Zn, 0.85% Cu, 24.33 g/t Ag and 0.81 g/t Au.

Drill hole DIA-135 encountered two mineralized sections, an upper section of Bolivar-type Cu-Zn mineralization and a lower section of South Bolivar-type copper-magnetite mineralization:

Hole From To Thickness Au Ag Cu Zn
No. Segment (m) (m) (m) g/t g/t % %
DIA-135 A 52.90 63.60 10.70 0.81 24.33 0.85 26.80
B 165.00 177.20 12.20 0.43 42.45 0.91 0.08
including 165.00 170.30 5.30 1.07 103.78 2.23 0.16

Hole DIA-135 represents a potential major expansion of the Bolivar Mine high grade zones because it demonstrates that alteration and mineralization are continuous over a strike length of at least 800 meters with mineralization open in three directions. Dia Bras continues to conduct surface and underground drilling to expand the mineralized zones at Bolivar.

This is the first hole in the Company's drilling program that has encountered both types of mineralization. The high-grade zinc mineralization in hole DIA-135 is similar to and deemed to be an extension of the higher-grade zones that are currently being extracted in the Brecha Linda zone, which lies 150 meters north of the hole. The second section is typical of the South Bolivar-type copper-magnetite mineralized zone. Offset holes are being drilled to define the hole DIA-135 mineralization and its relation to the Brecha Linda and to the South Bolivar-type copper-magnetite mineralized zone.

Rejean Gosselin, President of Dia Bras said "It has been very exciting for Dia Bras to cut these new zones of mineralization at Bolivar. We are expecting continued success with our drill program at Bolivar and to expanding the high grade copper and zinc to the east, south and north. The NI43-101 report on the Bolivar project will be completed in October."

Brecha Linda

Drilling, development and mining data indicate 148,000 tonnes of mineable material on the accessed portion of Level 1 and the tonnage will increase as the level is developed further across the Brecha Linda zone. This zone is expected to contain up to 250,000 tonnes at 2-3% Cu and 12-15% Zn.

South Bolivar-type copper-magnetite mineralized Zone

Dia Bras has now completed 24 diamond drill holes in the South Bolivar-type copper-magnetite mineralization, which show that it averages 20 meters thick and extends over 300 meters N-S and 250 meters E-W. The zone is open to the east, south and north. The holes outline 5 million tonnes of drill-indicated copper-magnetite skarn and this tonnage is expected to increase as drilling continues. The company is currently conducting tests on the magnetite to determine its market value.

Results of the pilot-mining program at Bolivar

The production at Dia Bras' Mal Paso mill increased to 6,624 tonnes during September and 258 dry metric tons of copper concentrate and 601 dry metric tons of zinc concentrate were produced. Mining has entered the Brecha Linda zone on Level 1, a zone of high grade copper-zinc mineralization that has been a primary target for access during development and ore is being removed from three stopes. Mining also continues on Level 4 from the Foto manto zone. Brecha Linda and Foto ore now being milled has averaged 3.2% Cu and 12.0% Zn.

Acquisition of Mal Paso Mill

In mid-September, Dia Bras Mexicana, a wholly-owned Mexican subsidiary of Dia Bras, has exercised its option to acquire the Mal Paso mill for a total of US$450,000. An amount of US$175,000 has been paid upon signing of the contract and the balance of payments will be US$25,000 per month over the next eleven months.

The capacity of the Mal Paso mill has been increased, since its February start-up, from 100 tpd to 300 tpd at which level it is currently running. The mill is expected to process 7,000 tonnes per month from now on.

Mr. Andre St-Michel, engineer and Executive Vice-President from the Company, is the qualified person who supervised the exploration program.

Stock option plan

The board of directors has approved, subject to the approval of the shareholders and the regulatory authorities, an increase in the number of common shares reserved for issuance under the stock option plan of the Company. The approved maximum number of 5,900,000 common shares represents approximately 10% of the current number of shares issued and outstanding.

Furthermore, the Board granted a total of 150,000 options to purchase common shares in the Company to three directors and all options have an exercise price of $0.22 and an exercise period of five years.

About Dia Bras

Dia Bras is a Canadian mining exploration company focused on precious and base metals in the State of Chihuahua, northern Mexico. The Company continues exploration and the active development of its two key projects - Bolivar and Promontorio - in the world-renowned Sierra Madre mineral belt. The Company trades on the TSX Venture Exchange, under the symbol "DIB".

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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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Dia Bras Exploration
    Rejean Gosselin
    (514) 866-6001 ext. 241
    CHF Investor Relations
    Linda Armstrong
    Vice President
    (416) 868-1079, Ext 229