Dia Bras Exploration Inc.
TSX VENTURE : DIB

Dia Bras Exploration Inc.

October 12, 2006 10:06 ET

Dia Bras: Major Improvements in Productivity and Efficiency at the Malpaso Mill

MONTREAL, QUEBEC--(CCNMatthews - Oct. 12, 2006) - Dia Bras Exploration Inc (TSX VENTURE:DIB) is pleased to provide an update on recent improvements and expansion of the Company's Malpaso Mill.

Following recommendations from a consulting metallurgist, the Company has put in place a program to improve the overall efficiency of the Malpaso mill. Increased supervision combined with installation of automated reagent controls and modification to the equipment maintenance schedule has led to peaks of 410 tpd of material processed and high plant availability.

The following results have been achieved:

- Recovery of copper has increased to an average of 85% from the initial average of 70%;

- Recovery of zinc has increased to an average of 92% from an average of 84%;

- The content of zinc in the copper concentrate has been reduced to a level where very minor smelter penalties are imposed (the limit is 4% Zn) with an average zinc content of 6.5%. This zinc content in the copper concentrate is optimal since calculations by the Company's staff demonstrate that the mill is now operating at maximum economic efficiency taking into account both metals. Any additional attempts to increase recoveries would result in reduced net revenue;

- For the month of September, reagent costs decreased by US$8,000 and revenues increased by US$70,000, for a net increase of US$78,000 compared with what would have been realized without these improvements;

- Down time was minimal during the third quarter, with only 3.5% interruption in processing ;

- Tests are in progress to separate Lead and Bismuth from the copper concentrate; this would eliminate smelter penalties of US$60-75 per ton of concentrate.

Recycling of used water from mill processing was increased to 75% from 33% due to a new configuration of the tailings dam, impermeable lining installation, additional piping and settling ponds, new pumps and tanks. With the drilling of a well dedicated to the mill's operations, water availability at the site is now 12 liters per second (lps). The expanded mill will require 7.4 lps, which represents a spare capacity of 4.6 lps (50%). The installation of a larger pump in the well would increase water availability to 16.0 lps, which would provide spare capacity of 8.6 lps.

Power availability to the mill has been increased. The mill currently has 450 kW under contract and consumes 425 kW. The expanded mill will require an additional 850 kW for a total new power requirement of 1,275 kW. The Company has increased its contracted power availability to 1,800 kW, which provides a 41% margin (575 kW) for the mill's operations.

The tailings capacity of the mill has been reviewed and the Company has determined that there is space available for tailings from an additional 3 million tonnes of processed rock in the current tailings area. This represents over 10 years of tailings space availability at the mill's expanded rate of production.

The laboratory at the mill can now assay almost 100 samples per day as well as perform Fire Assay for gold and silver.

Expansion of the Malpaso Mill

The independent circuit that will process mineralized rock from the Silver Cusi project is under construction and on schedule for completion during the month of November. This is record time and on budget. The new circuit, which will have a capacity of 500 tpd, will begin processing rock from Cusi in November and will bring the mill's total capacity to 850 tpd.

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 newly acquired Cusi silver mining camp. 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 that 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
    Thomas L. Robyn
    Execuvtive Chairman
    514-393-8875 ext. 241
    or
    Dia Bras Exploration
    Rejean Gosselin
    President
    514-393-8875 ext. 241
    www.diabras.com
    or
    Sun International Communications
    Nicole Blanchard
    Managing Partner
    450-627-6600