Transcript Slide 1

Simplified cross section of a copper porphyry system that is generating a mineralized
system. The felsic porphyry intrusion is the heat engine that drives mineralizing fluids
to various parts of the system.
A copper porphyry system can generate up to six distinct and separate types of ore
deposits. The presence of carbonate bedrock is essential for the formation of skarns
around the intrusion. A particular copper porphyry does not necessarily generate all of
these deposit types, but multiple deposits generally occur in and around the porphyry
system.
One type of deposit formed by a copper porphyry system is zinc skarn, which occurs at the outer
edges of the mineralized area and typically hosts zinc-lead-silver mineralization. The skarns are
poddy, forming mantos (tabular bodies), pods and chimneys or pipes. They range from less than
1,000 tonnes to over 60,000 tonnes in a single body, but cumulatively they can form large tonnages
that are mineable from the same mine access. Deposits of several million tonnes have been mined
in other skarn districts. The Bolivar mine currently being operated as a pilot mine by Dia Bras is
this type of zinc skarn, although at Bolivar the zinc skarn is dominantly a zinc-copper rich and leadpoor skarn because the Bolivar mineralization is copper rich. Grades of the massive sulfide
mantos and pods at Bolivar are very high, grading 30-40% zinc and 6-8% copper. Mill feed to Dia
Bras’ mill at Malpaso ranges between 12% and 16% combined copper-zinc because low-grade
(1-1.5% copper and 4-8% zinc) development rock from drifting of access tunnels to the various
high-grade pods is blended with the high-grade material. The Company’s objective is to develop
more working faces in higher grade material so that mill feed will be maintained at higher levels.
If the carbonate rock around the intrusion contains a layer of permeable and porous
calcic limestone, the mineralizing fluids flowing through it will generate a copper skarn.
These skarns are stratabound and can extend laterally for several kilometers. The
largest copper skarns known contain up to one billion tonnes of mineralized rock
averaging 0.5% copper.
If the carbonate rock surrounding the intrusion contains a layer of permeable and
porous magnesian limestone (dolomite or dolostone), a copper-iron skarn is formed.
This skarn type can also occur over several kilometers length, either as a single
deposit or as multiple deposits in the same stratigraphic layer. The South Bolivar
skarn is this type of skarn. The list above shows the range of tonnages and grades
of copper-iron deposits just in the Yerington district (Nevada, USA) that were generated
by a single porphyry system.
Old Portal in South Bolivar Cu-Fe Skarn
View of an old portal (Mina de Fierro) in the South Bolivar copper-iron skarn. The
skarn is about 30 meters thick in this area, which is located between the Bolivar mine
and El Gallo. Dia Bras has drilled this skarn over a 250 x 350 meter wide area, and it is
open down-dip and along strike. The copper-iron skarn has also been located by
drilling below the Level 6 of the Bolivar mine.
Cu-Fe Mineralization in South Bolivar Skarn
A view of El Gallo where the South Bolivar copper-iron skarn is exposed along a cliff
where secondary copper (malachite, the green stain) occurs within the skarn. The
brown disturbed area at the center right view is the edge of the Increible mine, which is
a Cananea-type copper breccia pipe. The portal for Mina de Fierro is located over the
ridge (behind the house on the top of the ridge) and about 200 meters beyond it.
These exposures show the lateral continuity of the copper-iron skarn, which is typical
for this type of deposit. The down-dip extent of the skarn has not yet been determined,
but the Company is planning a 16,000 meter drilling program during 2006 to continue
defining the extent of this deposit.
Fluid overpressure that develops in the lateral calcic or magnesian layers, or at the top
of the intrusion, forces mineralizing fluids through the overlying rocks causing extensive
brecciation (breakage) of the rocks and forms breccia pipes. Where the breccia pipe
intersects one of the lateral layers, high-grade low-tonnage copper deposits form.
These deposits occur in a doughnut-shaped form around a barren calcite core and can
be as small as 100 x 250 meters in size, but still exceedingly profitable. Dia Bras is
exploring for a Cananea-type breccia deposit where the Increible breccia pipe
intersects the South Bolivar skarn. The two deposits listed occur at the Cananea
mine, Sonora, Mexico. At least one other area at Bolivar has been identified as a
breccia pipe but is unexplored at this time.
Mina Increíble: Cananea-type breccia pipe
View of the Increible breccia pipe deposit showing the strong relief of the area being
explored.
The top of the porphyry intrusion can become mineralized as a copper porphyry
deposit, where copper mineralization occurs in a large zone of quartz veining and
stockwork (cross-cutting quartz veinlets and veins) mineralization. Such a deposit is
the heart of the Bolivar mineralizing system but has not been located as of June 2006,
and it is a primary goal of the Company to search for this core intrusion during this
year.
The Bolivar area is within an extensive trend of copper porphyry deposits.
A compilation of the range of tonnes and grades found in various copper porphyry
deposits in this region. These list does not include the tonnes and grades of their
associated skarns and breccia pipes.
High-sulfidation gold deposits occur in the upper levels of the volcanic pile associated
with the copper porphyry intrusion. The area around the Bolivar mine is eroded deeply
enough that the lateral and distal skarns are exposed, and any high-sulfidation gold
deposits in the immediate area have been eroded away or are covered by postmineralization volcanic ash flows.