Dia Bras Exploration Inc.

Dia Bras Exploration Inc.

December 08, 2009 13:12 ET

Dia Bras Discovers Further Silver Vein Extensions at Depth and Initiates Expanded Development at its Cusi Silver Project

MONTREAL, QUEBEC--(Marketwire - Dec. 8, 2009) - Dia Bras Exploration Inc. (TSX VENTURE:DIB) is pleased to announce that it has initiated further development of the San Antonio and Mexicana veins of the Santa Eduviges mine within its Cusi property with the objective of increasing shipment of silver-mineralized rock to its Malpaso mill, which is located only 35 km from the mine. Recent drill results at both the San Antonio and La Mexicana veins have delineated extensions of silver mineralization as well as intercepting previously unknown veins at depth (see table below). In addition, the company plans to restart the development of its Promontorio silver mine (also within its Cusi property) in early 2010 to expand silver production rates.

"We consider that the latest drill results at the San Antonio and Mexicana veins are further evidence of the exploration upside of these areas and provide support to our pilot mining plan for 2010. In addition, we are pleased with Cusi's mining and processing tests during the month of November. The recent construction completion of the cyanidation vat leaching circuit enhances the economics of the Cusi project and its growth prospects" said Daniel Tellechea, President and CEO of Dia Bras.

Drill results from the San Antonio and Mexicana veins are shown in the table below:

Hole ID From To Core Estimated Ag Pb Zn Vein
(m) (m) Length True Width (g/t) (%) (%)
(m) (m)
DC09M083 42.80 44.05 1.25 1.00 461 0.40 0.20 S. Antonio
DC09M084 9.20 11.50 2.30 1.50 163 0.17 0.31 S. Antonio
20.80 21.20 0.40 0.30 115 0.43 0.27 S. Antonio
27.00 28.70 1.70 1.15 237 1.60 2.54 S. Antonio
DC09M087 27.00 30.00 3.00 2.30 903 2.94 5.80 S. Antonio
DC09M088 3.00 6.00 3.00 1.45 394 1.65 1.45 S. Marina
DC09B240 51.40 52.75 1.35 0.77 262 0.10 0.15 La Mexicana
DC09B242 50.70 51.20 0.50 0.40 476 0.16 0.13 La Mexicana
DC09B246 43.20 43.70 0.50 0.40 298 1.27 5.69 La Mexicana
DC09B248 50.30 51.45 1.15 0.90 312 1.09 2.03 La Mexicana
62.80 63.70 0.90 0.70 567 2.30 3.46 La Mexicana
DC09B249 85.50 86.30 0.80 0.50 302 1.06 5.25 S. Antonio
116.05 117.40 1.35 1.00 1188 5.00 3.51 S. Antonio
123.90 125.90 2.00 1.30 227 0.50 1.13 S. Antonio
DC09B254 84.00 86.30 2.30 1.40 256 1.40 3.42 S. Antonio
114.90 118.70 3.80 2.30 280 1.10 3.47 S. Antonio
124.10 126.00 1.90 1.15 135 1.00 0.97 S. Antonio
199.00 199.75 0.75 0.60 747 17.70 6.88 S. Marina

Pilot Mining Update For Cusi

Mining in the San Antonio vein is currently being done from underground workings at the 1970 m level with shipments to Malpaso of 50-70 tons per day (tpd). Rock from this program is being processed as part of the mill optimization program that should result in increased silver recovery in preparation for processing of higher daily tonnages, based on the Company's previous metallurgical studies.

A ramp is being driven to the 1940 m level in order to provide access to recently discovered, high grade silver mineralization found in drill holes below the current workings, as shown in the accompanying longitudinal section that can be accessed at http://www.diabras.com/en/newscenter/2009/sanantonio.pdf. The Company's objective is to have six operating stopes within two months, which will result in shipments of 150-180 tpd by early March, 2010. In addition, development of the Mexicana vein will be done concurrently with development of the San Antonio vein.

In preparation for pilot mining, the Company has been optimizing the Malpaso circuit of the Malpaso mill in order to achieve maximum silver recovery. During November, the mill processed 1,214 tonnes at an average grade of 344 g/t Ag, 0.51% Pb and 1.17% Zn. Tuning of the mill has included varying reagent mixes and retention times in the flotation cells. Various options have been considered with the objective of determining how to produce the most economic silver concentrate. The most favorable option has been selected and has been implemented. During November, recovery of silver by only the flotation method averaged 62.8%.

The tailings from this work are being stored separately in order to be re-processed in the vat leach circuit, which has been commissioned and is in start-up mode.

Vat Leach Operating Update

Construction of vats and associated circuits for leaching of silver from flotation tailings was started on August 3 and was completed in mid-November. The decision to construct the vats was based on the results of metallurgical testing that demonstrated total silver recoveries of 80-85% can be achieved with a combination of flotation and leaching methods (see press release of June 10, 2009).

The first silver precipitate derived from the vat leaching process has been removed from the filters and will be smelted to produce the first silver dore bar this week.

Promontorio Mine Development Plan Update

Dia Bras plans to expand silver production from the Cusi property in late 2010 by developing the Promontorio mine beginning in early 2010. When the Company's new mill at the Bolivar site is commissioned, the Triunfo circuit of the Malpaso mill will become available to process rock from Promontorio. The objective is to have the Santa Eduviges and Promontorio mines developed such that the mines will produce 400-500 tpd during 2011, and to increase mine production in the following years.

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".

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's 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.

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.

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