Dia Bras Acquires an Entire Silver District in Chihuahua, Mexico: Properties Cover more than 7,500 Hectares Including Twelve Former Mines
09:46 EDT Wednesday, May 31, 2006
MONTREAL, QUEBEC--(CCNMatthews - May 31, 2006) - Dia Bras Exploration Inc. (TSX VENTURE:DIB) is pleased to announce the acquisition of the entire Cusihuiriachic (Cusi) silver district in Chihuahua state, 40 km from the Company's Malpaso Mill. The properties acquired cover more than 7,500 hectares, including 12 former mines that historically produced high grade silver. Dia Bras has initiated systematic exploration on selected past-producing mines.
The transactions
The properties were previously owned by Mexican families, private companies, and one publicly-owned company, Pershimco Resources (PRO: TSX-V). In addition, the Company has claimed open ground in the district. Acquisitions, subject to regulatory approval, are the following:
1. Purchase of 1,712 hectares from several individual families for a
total cash payment of US$945,000, issuance of 1.2 million Dia Bras
shares. The properties are subject to a 1.5% NSR capped at US$1.5
million, with a US$1 million buy back option;
2. Signing of an exclusive option to purchase up until June 30th,
2006, of more than 883 hectares from a private company, Compania
Minera Cusi, for approximately US$5 million payable over three years
plus a sliding scale royalty. Final terms are being negotiated;
3. Purchase of a 70% interest in Pershimco's 36 hectare-property for
a work commitment of US$4 million dollars over the next 30 months,
plus a US$200,000 cash payment and a private placement of CA$340,000.
The property is subject to a 2% NSR of which 1% can be bought back
for US$1 million;
4. Claiming by Dia Bras of 5,000 hectares in order to fill in between
these properties and thereby secure the remainder of the district.
"We are very enthusiastic about initiating a systematic exploration and development program at Cusi with the objective of adding precious metals into our pilot-mining production by the fourth quarter of 2006. This region is very promising and the potential of these former mines at depth has never been explored. This is an example of management's forward thinking, because it will allow the company to expand production at the Malpaso mill, while we continue progress towards a feasibility study for a large mill on-site at our cornerstone Bolivar property", said Dr. Thomas Robyn, executive chairman of Dia Bras.
"The production and exploration teams at Dia Bras Mexicana are positively challenged by this new territory to explore and develop. We have recently outsourced our ambitious 25,000 meter drilling program to Canmex in order to leverage on our exploration expertise at both the large-tonnage Cu and Zn targets at Bolivar and at this Cusi silver district", said Rejean Gosselin, president and CEO of Dia Bras.
The geology of the Cusi silver district
The property covers the silver district of Cusi, in the central western part of the State of Chihuahua, approximately 125 km west of the city of Chihuahua. The property covers 75 square kilometers in the Sierra Madre.
Silver mineralization occurs in vertical quartz-veined breccia zones of epithermal origin, and silver and base metal sulphides enrichment are fund at depth.
At least nine mineralized structures of vein/stockwork and breccia types, each ranging from 500 m to 2,000 m in length and from place to place, up to 50 m in width, were exploited by previous operators.
These structures were mined historically starting about 300 years ago but have been left untouched since the 1930s. At least 10 million ounces of silver were extracted by the Cusi Mining Company alone, between 1927 and 1932 from its five small underground mines. Few mines were exploited into the sulphide zones due to lack of infrastructure, technology and expertise.
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 continues exploration and the active development of its two key projects - Bolivar and Promontorio - in the world-renowned Sierra Madre mineral belt. The Company trades on the TSX Venture Exchange, under the symbol "DIB". For more information of our Mexican exploration, please consult our Web Site at diabras.com
If you would like to receive press releases via email please contact info@diabras.com
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 which 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Dia Bras Exploration
Thomas L. Robyn
Executive Chairman
(514) 866-6001 ext. 241
tlrobyn@msn.com
or
Sun International Communications
Nicole Blanchard
Managing Partner
(450) 627-6600
nicole.blanchard@isuncomm.com
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