BOLIVAR
[Overview]
The Bolivar project is the Corporation's most advanced asset. The former zinc-copper producer is located in the Piedras Verdes mining district, which has a long mining history and significant potential for new discoveries in the prolific Sierra Madre Occidental. Several companies are operating or developing mines in the region, while many others are exploring early-stage prospects.
Prior to the acquisition of EXMIN Resources Inc. (EXMIN), the Bolivar property was composed of twelve mineral concessions covering approximately 6,616 hectares in Chihuahua State, Mexico, located approximately 250 km southwest (straight line) from the state capital, Chihuahua. After the acquisition of EXMIN, the Corporation’s Bolivar property now consists of 20 concessions covering 21,552 hectares.
Elevations of the Bolivar property range from 1,200 m to 2,300 m above mean sea level. The area has a rugged topography, with topographic relief ranging from 250 m to 500 m.
The Corporation commenced pilot-mining at Bolivar in February, 2005, and produced 50,371 tonnes of mineralized rock at an average grade of 1.89% Cu and 8.07% Zn. During 2006, 96,595 tonnes of mineralized rock from the Bolivar mine was treated at the Malpaso mill with an average grade of 2.03% Cu and 10.63% Zn. During 2007, Bolivar pilot-mining produced 127,106 tonnes of mineralized rock with an average grade of 1.49% Cu and 6.92% Zn.
Production at the Bolivar mine during 2008 was 126,489 tonnes of mineralized rock at an average grade of 1.65% Cu and 8% Zn. Bolivar produced 89,577 tonnes at 1.81% Cu and 10.06% Zn in 2009. From 2005 through the end of 2009, the Bolivar pilot-mining program has produced a total of 490,138 tonnes of mineralized rock with a production weighted average grade of 1.74% Cu and 8.62% Zn. Production from the Bolivar mine is not subject to any royalties.
In conjunction with the pilot-mining program at Bolivar, the Corporation continues to define a resource sufficient to support a 1,000 tonne per day mill on site at Bolivar. The Bolivar mill will significantly reduce operating costs by eliminating 98% of the ore transportation distance, allowing for the optimization of the life of mine ore grades to be processed at the site.
Bolivar is a district-scale property considered prospective for new discoveries of precious metal and bulk-tonnage copper-skarn deposits, as confirmed by the Corporation’s regional exploration and by technical reports and field visits by Professor Lawrence D. Meinert. Exploration and development of bulk-tonnage deposits are essential components of the Corporation's strategy to become a mid-tier copper-zinc and precious metal producer.
A new geological mine development program began during the third quarter of 2008. Mine exploration developed an ore trend and chimney model for the Bolivar mineralization district, drilled mineralized trends and chimney skarn mineralization along the San Angel dike, and the down-plunge extensions of the Fernandez, Brecha Linda and San Francisco zones to increase the volume of high-grade material. Furthermore, the Corporation extracted high-quality material to maximize value and generate a medium-grade stockpile to commence production at the Malpaso mill.
As a result of this mine development program, Dia Bras is now producing approximately 8,000 tonnes per month of mineralized rock from the Bolivar mine, for processing at the Malpaso mill.