The history of the Cusihuiriachic silver district spans more than three hundred years. The abundance of silver initially attracted Spanish explorers to Cusi in the late 1600s. The District’s central location and silver production was important to silver mining in the northern Mexican silver province during the subsequent 300 years and the overall economic development of Chihuahua. These former mines historically produced high-grade silver but became inactive during plummeting silver prices; most have never been explored for disseminated open-pitable resources, which crop out on the property, and none with modern techniques.

Dia Bras acquired in May-June 2006 the Cusihuiriachic (Cusi) silver district in Chihuahua State, 40 km from the Malpaso mill. The acquired properties cover more than 10,000 hectares, including 12 former mines, each located on a mineralized structure. This region is very promising and the potential of these former mines at depth has never been explored. The Cusi project is subject to different purchase and option agreements all entered into in 2006.

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 currently consists of 64 concessions that cover 11,814 hectares in the Sierra Madre Occidental. Silver mineralization occurs in vertical quartz-veined breccia zones of epithermal origin, and silver and base metal sulphides enrichment are found at depth.

These structures were mined historically starting about 300 years ago but have not been mined since the 1930s. At least 8.5 million ounces of silver were extracted by the Cusi Mining Corporation 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.

In June, 2008, the Corporation entered into a joint venture agreement (the “JVA”) with Pershimco Resources Inc. for the San Miguel and La Bamba properties, which cover 36 hectares in the Cusi Silver Mining District. Pershimco must incur US$1.5 million of expenditures on the properties within 18 months before having the right to acquire an additional 20% interest on the properties at a cost of US$1.0 million.

The JVA provides for Pershimco being the operator for all exploration and development of the properties which will be managed by a jointly owned Mexican subsidiary. Pershimco and Dia Bras each hold a 50% interest in the San Miguel and La Bamba properties. The properties are subject to a 2% NSR of which 1% may be repurchased for a consideration of US$1,000,000. As at December 31, 2009, the transfer of 50% of San Miguel had not been completed due to a legal issue that Pershimco has on the ownership of the property.

Dia Bras initiated a pilot-mining program at Cusi in April, 2008. Management temporarily halted pilot-mining at Cusi in January, 2009, to focus its efforts on reducing production costs at the Bolivar mine and to conduct further metallurgical testing and resource development drilling of the Cusi mineralization. Metallurgical testing during 2009 showed that 80-85% recovery of contained silver from the Cusi mine rock can be achieved using a combination of flotation and cyanide vat leaching methods.

The pilot-mining program recommenced in August, 2009, and Dia Bras poured its first silver doré at the Malpaso mill from material produced at the Cusi mine in December, 2009.