OVERVIEW
A Fast-Growing Producer of Silver, Copper and Zinc in Northern Mexico
Since 2003, Dia Bras Exploration 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.
The Company’s projects collectively cover more than 15,000 hectares in the world-famous Sierra Madre 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 the current financial year, the Company will conduct extensive drilling campaign on the Bolivar property and the Cusihuiriachic district (Cusi Project). These programs consist of geological mapping and drilling from surface on the Bolivar property and the Cusi Properties and underground drilling at the Bolivar property. The objectives are to drill a minimum of 25,000 meters on each project before the end of 2007.
The Company will continue its program of pilot-mining at Bolivar and develop more working faces on deeper levels that are accessed by ramps from first and sixth levels. The Company will continue to ship the Bolivar material to the Malpaso mill by trucks and train at a level of 7,500 tonnes per month. A 43-101 resource report is planned for release late September 2007.
The mill capacity has been increased to 850 tonnes per day by adding a new independent circuit, the Triunfo circuit. This new circuit has been added to treat approximately 500 tonnes per day of mineralized rockcoming from the Cusi Properties where the Company intends to start a pilot-mining program similar to the one started in 2005 at Bolivar.
Scott Wilson RPA completed a technical report in compliance with National Instrument 43-101 on the Cusi property and the report, which was dated December 22, 2006, was delivered to the Company in January 2007.