A Fast-Growing Producer of Silver, Copper, Zinc and Lead in Northern Mexico
Since 2003, Dia Bras Exploration Inc. has focused its exploration and development activities in Mexico and will continue this strategy in the coming year. The country offers prospective geology, a favorable investment climate and a mining tradition that pre-dates colonization.
As a result of the Company’s acquisition of EXMIN Resources Inc. on September 30, 2009, Dia Bras´ projects currently cover 247,725 hectares, mostly located in the world-famous Sierra Madre Occidental mineral belt of northern Mexico. The highly prospective belt hosts a series of historic mining districts that have attracted dozens of foreign companies since Mexico reformed its mining laws in the early 1990s. Several new mines began production in recent years, and many other projects are being advanced to production. Exploration continues, focused on precious and base metals. During 2007, the Company conducted extensive exploration programs on the Bolivar Property and the Cusihuiriachic district (Cusi Property). These programs consisted of geological mapping and surface drilling on the Bolivar and Cusi properties and underground drilling at the Bolivar Property. The objectives were to define new resources by drilling a minimum of 25,000 metres on each project. The Company has continued its pilot-mining program at Bolivar since its inception in February 2005, and in 2007 developed more working faces on deeper levels that are accessed by ramps from the first and sixth levels. A National Instrument 43-101 (NI 43-101) resource report was released in late September 2007, and was updated in February 2009.
The Company continues to ship the Bolivar mineralized rock to the Malpaso Mill by trucks and train at a level of approximately 8,000 tonnes per month, and will continue to do so until the new Piedras Verdes Mill is constructed and operational by Spring of 2011. Located six kilometres from the Bolivar Mine, the 1,000 tonne per day Piedras Verdes Mill is expected to reduce operating cash costs and optimize the life of mine ore grades to be processed at the site.The Malpaso Mill capacity was increased to 800 tonnes per day in 2007 by adding the new, independent Triunfo circuit. This new circuit was added to treat approximately 550 tonnes per day of mineralized rock coming from the Cusi Project, where the Company started an advanced development program in 2008, similar to the one started at the Bolivar Project in 2005. Scott Wilson RPA completed a technical report in compliance with NI 43-101 on the Cusi property, and the report, which was dated December 22, 2006, was delivered to the Company in January 2007. The Company expects to obtain an updated NI 43-101 resource calculation for Cusi in 2011.