Dia Bras Signed a JV Agreement for the San Miguel and La Bamba Silver Properties
Dia Bras Exploration Inc. (TSX VENTURE: DIB) (the Company) reports that the Company signed a joint venture agreement with Pershimco Resources Inc. (TSX VENTURE: PRO) (the “JV”) for the San Miguel and La Bamba Properties (the “Properties”) which cover 36-hectare located in the Cusi Silver Mining District in the State of Chihuahua, Mexico. Pershimco and Dia Bras each hold a 50% interest in the Properties.
Pursuant to the terms of the JV, Pershimco must incur US$1.5 million of expenditures on the Properties before having the right to acquire an additional 20% of the Properties at a cost of US$1.0 million. The JV provides for Pershimco being the operator for all exploration and development of the Properties which will be managed by a jointly-owned Mexican subsidiary named DiaPro Mexicana (“DIAPRO”).
A 10,000 metre drilling program will start soon under the direction of Pershimco. The program will test the depth extension of the silver mineralization to a minimum 500 metre vertical depth, well below the current 150 metre vertical mine workings. Two drill rigs will be in operation 24 hours a day, seven days a week to complete the drill program. The objective of the drilling program is to delineate a mineral resource in compliance with National Instrument 43-101 in the coming months.
The San Miguel Property is a historical mine with five underground levels with visually confirmed silver mineralization to a minimum depth of 150 metres. The La Bamba Property is contiguous with the San Miguel Property and also hosts a historical mine with two underground levels with visually confirm silver mineralization to a minimum depth of 100 metres vertical depth as well as a historical open pit mine. Mineralization has been confirmed at surface by historical work on the Properties.
Exploration and development work completed to date suggests that a significant silver mineral resource may be present in the San Miguel/La Bamba mineralized zone situated on the Properties. This zone covers an area of 1 km by 0.5 km.
This technical content of this press release was approved by Francois Auclair, geologist and Vice President, Exploration of Dia Bras, a Qualified Person as such term is defined under National Instrument 43-101.
In May-June 2006, Dia Bras staked ground and entered into agreements to earn interest in more than 7,500 hectares of contiguous property (the Cusi Silver Mining Camp), including 12 former mines. La Bamba and San Miguel mineral lots cover 36-hectare.
About Dia Bras
Dia Bras is a Canadian mining and exploration company focused on precious and base metals in 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 and La Enganosa copper-silver in the State of Jalisco. The Company trades on the TSX Venture Exchange under the symbol “DIB”.
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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.
Contacts: Dia Bras Exploration Daniel Tellechea President & CEO 514-393-8875 Dia Bras Exploration Francois Auclair VP Exploration 514-393-8875 www.diabras.com
SOURCE: Dia Bras Exploration Inc.