Dia Bras Exploration announce that it has received an updated Resource Evaluation for the Bolivar Cu-Zn Project, effective September 25th, 2008 and dated October 31st, 2008 that was conducted by Yann Camus, P. Eng. Geo., from SGS Geostat Ltd., independent Qualified Person under NI 43-101 standards.

“The pilot mining program initiated by the Company in late 2005 has met its objectives” stated Daniel Tellechea, President and CEO of Dia Bras Exploration. “We have factual information on the metallurgy of the copper and zinc mineralization, recovery rates, per tonne revenues at various commodity prices, mining costs and other factors. We can now focus our attention on construction of a mill on site and eliminate the high transportation cost of shipping rock to our Malpaso mill, which was always considered a temporary measure to obtain this essential information. We are very excited about the positive impact a mill on site will have on the project economics.”

Resource Evaluation

Effective September 25th, 2008, total undiluted resources from the Bolivar project have increased 26% to a total of 1,188,800 tonnes at 1.26 Cu%, 2.35 Zn%, 0.28g/t Au and 30.7g/t Ag in the Measured and Indicated categories and have increased 55% to 6,290,100 tonnes at 1.18% Cu, 0.99% Zn, 0.30g/t Au and 26.4g/t Ag in the Inferred Resources category, all at a 2.5% CuEq cut-off for the Upper Skarn (US) and 1% CuEq cut-off for the Lower Skarn (LS) and other zones (see tables). The preliminary economic assessment of November 2007 determined that the project could prove economic with two scenarios. This new resource is a significant increase over the last resource calculation of March 2008 effective December 31st 2007. Dia Bras believes that this significant increase is sufficient for the construction of a 500 tpd mill on site. Early-stage activities for the construction, such as securing surface land for a mill site, environmental permitting and acquisition of water rights, are in progress.

The Mineral Resources estimate for the Bolivar deposit used a cut-off grade based on average prices for copper, zinc, silver and gold, production costs and expected recovery in the resource model. The 2007 Preliminary Economic Assessment by SGS Geostat expects the mill recoveries for Cu, Zn, Au and Ag to be 90%. SGS Geostat has used the production costs as determined by Dia Bras for underground mining at Bolivar. These costs are reported to be similar to other copper-zinc operations of similar scale in Mexico. The cutoff grades are based on metal price assumptions of US$2.00/lb. Cu, US$1.00/lb. Zn, US$10.00/oz Ag and US$500/oz Au. SGS Geostat recommends that the above cut-off grade be used to report Mineral Resources of the Upper Skarn for processing of rock at the Malpaso mill. Resource estimate for the Bolivar Lower Skarn deposit can be calculated at different cut-off grades at this stage, because a block model has been built. The Lower Skarn will not be mined until a mill is constructed on site.

The Company will continue to move toward increasing Measured and Indicated Resources by conducting additional infill drilling and moving towards a 25 x 25 m hole spacing, which is required in order to calculate M&I Resources.

SGS Geostat has estimated the Mineral Resources of the Bolivar deposit using the database up to 25th of September 2008, which includes 465 diamond surface and underground drill holes for a total of 86,502.61 metres of drilling, which Dia Bras has provided to SGS Geostat and were incorporated in SGS Geostat software. A total of some 15,678.19 metres of assayed core was used (14,747 samples) for the resources calculation.

Most of the Resources of the US were calculated by cross sectional method, the remainder by inverse distance block model, while the Resources of the LS were calculated by inverse cubic power of the distance block model.

Since the last resource calculations, and notwithstanding the ongoing pilot-mining program, Measured and Indicated resources of the Upper Skarn had a slight increase of 12% in tonnage while Inferred resources have increased by 47% in tonnage. Between the two latest resource calculations, the Company has mined 99,202 tonnes of rock that has been shipped to the Malpaso mill and processed.

Exploration Potential

On-going exploration by Dia Bras continues to extend known zones of copper, zinc, silver and gold mineralization along the strikes of the Fernandez Trend and the Rosario-Rodolfo Trend, near the Bolivar Mine, as well as in other areas of the property, which encompasses some 75 km2. The San Francisco zone, for example, has significant upside potential that is only beginning to be determined.

The technical content of this news release has been approved by Eugene Schmidt, Vice-President, Exploration of Dia Bras, a Qualified Person as defined in NI43-101.

About Dia Bras

Dia Bras is a Canadian mining and exploration company focused on precious and base metals in the Mexico. The Company is committed to developing and adding value to its assets - the Bolivar copper-zinc project, the Cusi silver mining camp in the renowned Sierra Madre mining district of Northern Mexico. The Company trades on the TSX Venture Exchange, under the symbol “DIB”.

This entry was posted by Gold Mining on Monday, November 10th, 2008 at 9:29 pm and is filed under Copper, Zinc. Tags: Acquisition, Base Metal, Bolivar Mine, California, Company, Copper, Daniel Tellechea, Dia Bras, Dia Bras Exploration, Dia Bras Exploration Inc, Drilling, Eugene Schmidt, Gold, Gold Mine, gold miner, INCO, Ltd, Malpaso mill, metal, metal price, metal price assumptions, Mexico, mill site, Mine, mining, Mining Camp, North, Northern Mexico, oz Ag, PROPERTY, Qualified Person, Reno, Resources, Rosario, San Francisco, SGS Geostat Ltd., Sierra Madre, Silver, silver mining, silver mining camp, TSX Venture, TSX Venture Exchange, underground mining, United States, Yann Camus, Zinc. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.