Dia Bras Renegotiates Reyna de Oro Option Agreement at Bolivar Property
MONTREAL, QUEBEC -- (Marketwire) -- 09/20/10 -- Dia Bras Exploration Inc. (TSX VENTURE: DIB) ('Dia Bras') (the 'Company') is pleased to report that it has renegotiated the terms of the purchase option agreement for the remaining 75% interest of the Reyna de Oro mine concessions it does not already own. The reduced payment schedule will save the Company approximately US$600,000.
'The Reyna de Oro deposit was previously drilled by EXMIN,' stated Daniel Tellechea, President & CEO of Dia Bras, 'and the results indicate that significant gold mineralization is present. Our geologists believe that the old mine is one of numerous potential gold deposits that occur along a more than 5 kilometre northeast trend of strong gold occurrences on the western side of our wholly-owned Bolivar Property. We recently initiated a drill program at another gold target, La Cascada, located approximately 5 kilometres northeast of the Reyna de Oro mine.'
The New Terms
The Company owns a 25% interest in the two concessions included in the Reyna de Oro option agreement. During July and August, 2010, the Company renegotiated the option agreement for the acquisition of the 75% interest it does not own and entered into a purchase agreement to acquire the remaining rights for $381,816 (US$360,000), payable in four installments of $95,454 (US$90,000). The first installment was paid with the signing of the purchase agreement, and the second is to be paid in December 2010, the third in March 2011 and the last in June 2011. This project also includes certain concessions owned 100% by the Company, including the over 14,000 hectare Luz de Oro concession.
Increasing Gold Trend at Bolivar Property
At the Reyna de Oro mine, EXMIN Resources Inc. ('EXMIN') completed 2,200 metres of drilling at the project, and delineated a nearly flat lying tabular body averaging about 20 to 30 metres in thickness with 2-4 g/t gold and locally significant copper. The body is open along strike and down dip and locally contains significantly higher grades, including drill intercepts of 18 m of 6 g/t Au, 11 m of 7 g/t Au, and 3 m of 25 g/t Au. See Table 1 below for the selected intercepts from EXMIN's 2004 and 2005 drill campaigns at the Reyna de Oro mine.
Table 1. EXMIN selected drill intercepts from 2004 and 2005 drill campaigns at Reyna de Oro mine
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Drill Hole IntervalIntercept Au Ag Cu Comments
(m) (m) (g/t) (g/t) (%)
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RDO-04-R3 0.0 - 25.9 25.9 4.02 2.9 0.18
includes 0.0 - 10.7 10.7 7.17 3.3 0.09
42.7 - 68.6 25.9 0.91 2.3 0.52
Includes 51.8 - 59.4 7.6 2.08 3.3 0.67
RDO-04-R4 3.0 - 22.9 19.8 1.32 2.9 0.22 Poor recovery; lost
51.8 - 54.9 3.0 1.67 11.6 0.61
61.0 - 62.5 1.5 4.68 15.0 0.40 Ended in mineralized
zone
RDO-04-R5 18.3 - 50.3 32.0 2.17 1.3 0.42
includes 30.5 - 44.2 13.7 4.05 2.7 0.66
RDO-04-R6 36.6 - 54.9 18.3 6.14 4.1 0.55
includes 45.7 - 53.3 7.6 11.31 6.5 0.68
RDO-04-R7 0.0 - 3.0 3.0 0.37 0.7 0.03
21.3 - 39.6 18.3 1.37 2.0 0.98 Includes 25 foot void
includes 21.3 - 29.0 7.6 0.57 0.6 0.08 Before void
includes 36.6 - 39.6 3.0 3.38 4.9 0.15 After void; lost hole
RDO-04-R8 30.5 - 79.2 48.8 1.61 0.4 0.07 Includes 3 -5 foot
voids
includes 30.5 - 57.9 27.4 2.08 0.8 0.13 Includes 2-5 foot
voids
RDO-04-R9 0.0 - 9.1 9.1 2.08 1.0 0.13 Lost hole
21.3 - 24.4 3.0 1.22 0.2 0.08
56.4 - 80.8 24.4 0.93 0.9 0.14
includes 59.4 - 64.0 4.6 2.45 1.5 0.21
RDO-04-R10 21.3 - 54.9 33.5 2.03 4.4 0.27
includes 47.2 - 54.9 7.6 4.80 7.3 0.21
RDO-05-R13 38.1 - 42.7 4.6 5.35 2.4 0.22
RDO-05-R14 27.4 - 33.5 6.1 0.35 3.0 0.07
108.2 - 125.0 16.8 0.60 3.6 0.48
RDO-05R15 22.9 - 42.7 19.8 1.84 7.4 0.10
includes 36.6 - 42.7 6.1 3.99 19.8 0.15
57.9 - 80.8 22.9 2.94 6.6 0.64 5 feet with no
recovery
includes 59.4 - 68.6 9.1 6.49 8.7 0.78
RDO-05-R16 0.0 - 15.2 15.2 1.19 1.0 0.08
24.4 - 29.0 4.6 1.29 1.0 0.23
83.8 - 97.5 13.7 7.85 7.2 0.89
includes 86.9 - 89.9 3.0 25.41 20.3 2.26
RDO-05-R20 65.5 - 77.7 12.2 0.56 1.9 0.12 Poor recovery
includes 68.6 - 74.7 6.1 1.11 3.2 0.24
134.1 - 140.2 6.1 0.21 2.9 0.41
includes 138.7 - 140.2 1.5 0.65 5.6 0.72 Ended in mineralized
zone
RDO-05-R21 125.0 - 153.9 29.0 0.93 3.3 0.15
includes 126.5 - 128.0 1.5 6.54 1.4 0.07
includes 147.8 - 153.9 6.1 1.60 4.4 0.49 Ended in mineralized
zone
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The 14,936 hectare Reyna de Oro Project was EXMIN's first project and is adjacent to Dia Bras' 6,684 hectare Bolivar Project. The wholly-owned, combined land package is now the 21,620 hectare Bolivar Property that also hosts the Bolivar Mine and other base metals deposits and is located in a very well mineralized region with several current mining and exploration projects, including Goldcorp's El Sauzal mine.
Exploration around the Reyna de Oro mine indicates that mineralization may be related to a large intrusion located 2 km east of the mine. Also, several factors indicate that there is potential for the discovery of blind skarn mineralization similar to that encountered in the surrounding region (http://www.diabras.com/en/newscenter/2010/map15septiembre2010.jpg see Regional Mineralized Trends map). The project also hosts several other targets, including La Cascada and La Sidra to the north, and Balojaque, located 7 km south of the Reyna de Oro mine, which consists of several quartz veins with as much as 105 g/t gold.
La Cascada Gold Target
The La Cascada mineralization has characteristics similar to several multi-million ounce high-sulfidation gold deposits, such as the gold association with structurally controlled vuggy silica zones, the style of alteration zonation, association with copper and arsenic, presence of pyrophyllite, etc. La Cascada is notably similar to the El Sauzal deposit, which is located less than 20 km to the southeast and is on the same regional, NNW-trending major structural zone. La Cascada is near the Company's existing infrastructure, only 2 km south of its Cieneguita camp, and lies within the prolific Sierra Madre Occidental gold-silver belt of northwestern Mexico that hosts several multi-million ounce gold deposits.
Three Induced Polarization-Resistivity survey lines (http://www.diabras.com/en/newscenter/2010/LaCascada_Titan24_IPres_Location_anomalies.jpg) were completed in this area of rugged terrain: a 1,000-m-long N-S line and two E-W lines (800 and 900 m), which resulted in detection of three significant anomalies - all of which are associated with anomalous grades of gold in outcrop, as evidenced by the results of 2-metre-width, chip-channel sampling. The southernmost anomaly on the N-S line starts at 50 m depth. Sampling of outcrops over an area of 50 x 85 m was conducted prior to the survey and the six samples assayed 0.6 - 1.1 g/t gold.
Sampling in the area of the central anomaly (also starting at 50 m depth), conducted over a 40 x 50 m area (again prior to the survey), resulted in the eight samples assaying 0.5 - 2.1 g/t gold.
Sampling in the area of the northernmost anomaly, conducted over a 10 x 20 m area (also prior to the survey), resulted in the three samples assaying 0.4 - 3.0 g/t gold.
The truncation of the chargeability anomalies at an apparent constant 50 m depth is inferred to be the result of oxidation of the high-sulfide zones, remnants of which appear on the surface as 1-2% pyrite and abundant jarosite, hematite and goethite.
The surveyed area is only about 10% of the area known to host strong gold anomalies, with samples assaying up to 15 g/t gold.
Cambridge House Resource Investment Conference - Toronto
Dia Bras will be present at the Cambridge House Resource Investment Conference in Toronto on September 25-26, 2010. Please visit the Company's booth number 511 to receive further information on current programs.
Method of Analysis
Samples were prepared at the ALS Chemex lab facility in Chihuahua, Mexico, and analyzed by ICP and AA methods at their facilities in Vancouver, Canada. Diamond drill samples sent for analysis consisted of half NQ-size and BQ-size diamond core split on site, prepared by the ALS Chemex sample preparation laboratory in Chihuahua, Mexico, and assayed for Au by 50 g fire assay with AA finish, and for Ag by AA on 50 g split sample at the ALS Chemex North Vancouver Laboratory. Assays for Pb, Zn and Cu are processed by Induction Coupled Plasma (ICP) at ALS Chemex.
Quality Control
The quality assurance-quality control (QA-QC) of Dia Bras has been described in detail in both Roscoe Postle Associates' NI 43-101 reports of December 2006, at Cusi and October 2005, for Bolivar.
The technical content of this news release has been approved by Thomas L. Robyn, Ph.D., CPG, RPG, a Director of Dia Bras, a Qualified Person as defined in NI 43-101.
About Dia Bras
Dia Bras is a Canadian exploration mining company focused on precious and base metals in Chihuahua State and other areas of northern Mexico. The Company is committed to developing and adding value to its most advanced assets - the Bolivar Property and the Cusi Property. The Company's shares trade on the TSX Venture Exchange under the symbol 'DIB'.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Contacts:
Dia Bras Exploration Inc.
Daniel Tellechea
President & CEO
1-866-493-9646
Dia Bras Exploration Inc.
Karl J. Boltz
Vice President, Corporate Development
1-866-493-9646
www.diabras.com