Dia Bras Announces Second Quarter Results for its Bolivar Pilot-Mining Program in Chihuahua State, Mexicoadmin
Dia Bras Exploration Inc.(TSX VENTURE: DIB) is pleased to announce the second quarter 2006 operating results for its Bolivar mine pilot-mining program in Chihuahua, Mexico.
Well supported by high market prices for zinc and copper, the Company has just completed another very productive quarter at its Bolivar mine.
During the quarter ended June 30, 2006, the Company processed 22,584 dry metric tons (DMT) of ore averaging grades of 11.17% Zn and 2.19% Cu. These results are consistent with the Company’s forecast of 22,500 DMT grading 11.00% Zn and 2.5% Cu.
Mining and development during this quarter occurred mainly on Level 1 of the Bolivar mine in the Brecha Linda zone, a zone of high-grade zinc and copper mineralization first accessed in late 2005. Some lower grade development rock was included in the mill feed as the Company took advantage of high metal prices to develop more working faces in the Brecha Linda and a ramp to Level 2 to access the down-dip extension of the Brecha Linda.
A total of 4,016 DMT of zinc concentrate and 1,413 DMT of copper concentrate was produced from the 22,584 DMT processed. The value of total concentrate production based on average monthly zinc and copper prices is estimated at US $7.0 million, which exceeds the early 2006 forecast of US $4.0 million. The Malpaso mill averaged recoveries of 91.87% for zinc and 80.60% for copper. In June 2006, copper recovery increased to 85.48% from 73.97% in April and 81.81% in May.
Direct operating costs for the quarter, including shipping of concentrate, are estimated at US $2.4 million. The Company used its net cash flow from operations to continue exploring and developing the Bolivar project and to acquire additional mining and milling equipment.
During the first six months of 2006, Dia Bras billed a total of US$12.4 million, which includes some final settlement billings for concentrate shipped in late 2005.
The Company’s total concentrate production is sold to MRI Trading AG (MRI), a Swiss-based privately-owned commodity trading company, pursuant to a standard concentrate purchase agreement.
The pilot-mining program provides essential data on costs, logistics, grade, recovery and metallurgy that will serve for a feasibility study on the Bolivar property. The short-term objective of the program is to generate sufficient cash flow from zinc and copper concentrate production to finance development and exploration at the Bolivar mine and elsewhere on the Bolivar project.
About Dia Bras
Dia Bras is a Canadian mining and exploration company focused on precious and base metals in the State of Chihuahua, northern Mexico. The Company is actively exploring and developing its three key assets — the Bolivar copper-zinc project, the newly acquired Cusi silver mining camp and the Promontorio property — in the world-renowned Sierra Madre mineral belt. The Company trades on the TSX Venture Exchange, under the symbol “DIB”.
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Contacts: Dia Bras Exploration Thomas L. Robyn Executive Chairman (514) 393-8875 ext. 241
Sun International Communications Nicole Blanchard Managing Partner (450) 627-6600