View Presentation - Dia Bras Exploration

2009 Annual General Meeting
Welcome ! Montréal � June 10, 2009
1

Forward-Looking Statements
Certain statements in this presentation may constitute “forward-looking
statements” that involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or achievements of Dia
Bras Exploration, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such forwardlooking
statements. These statements reflect management’s current
expectations regarding future events and operating performance and speak only
as of the date of this presentation. These forward-looking statements involve a
number of risks and uncertainties.
Notice to readers
It is important to note that neither Bolivar nor Cusi is at a commercial
production stage. Completion of a feasibility study is required to confirm the
economic viability of a property before it is brought into commercial production.
2

Dr. Thomas L. Robyn
Chairman
3

� Opening of the meeting
� Nomination of scrutineers
� Notice of meeting
� Scrutineers’ report
� Agenda
� Annual report and financial statements
4

� Election of directors
– Thomas L. Robyn
– J. Alberto Arias
– David Crevier
– Douglas F. Cater
– Robert D. Hirsh
– Eduardo Gonzalez
– Philip Renaud
– Daniel Tellechea
� Reappointment of auditors
– PricewaterhouseCoopers LLP
� Stock Option Plan
� Other Business
� Termination of meeting
5

Daniel Tellechea
President & Chief Executive Officer
6

Presentation
� Results
– Production Bolivar & Cusi
– Operating Performance
� Business Strategy
� Question Period
7

Bolivar – Production and Cost Projections
2007
Real
2008
Real
2009
Forecast
2010
Forecast
Tonnes processed 127,106 126,489 100,000 150,000
Daily throughput 363 361 286 428
Copper grade 1.49% 1.65% 1.49% 1.58%
Zinc grade 6.92% 8.00% 10.22% 3.80%
Copper recovery 81.34% 83.40% 87% 87%
Zinc recovery 86.26% 87.15% 89% 89%
Copper concentrate production DMT 5,635 6,454 4,000 7,500
Zinc concentrate production DMT 13,574 15,355 13,000 8,600
Total production of copper (pounds) 3,528,778 3,854,688 2,500,000 4,500,000
Total production of zinc (pounds) 17,149,215 19,077,613 16,100,000 11,000,000
Operating cash costs/DMT* $129.27 $115.51 $76.00 $55.20
Average price of copper per pound, $US $3.23 $3.15 $2.00 $2.00
Average price of zinc per pound, $US $1.47 $0.85 $0.65 $0.70
The Company has not completed a feasibility study and accordingly there is no certainty that the stated objectives will be met, nor
that the operations will be profitable
8

Bolivar Results January to April 2008 - 2009
2008 2009
Jan-April Jan-April
Tonnes processed 41,498 38,177
Daily throughput 356 327
Copper grade 2.11% 1.61%
Zinc grade 7.17% 9.27%
Copper recovery 85.47% 85.00%
Zinc recovery 82.55% 88.03%
Copper conc produced DMT 2,807 1,882
Zinc conc produced DMT 4,432 5,298
Total production of copper (pounds) 1,670,859 1,147,484
Total production of zinc (pounds) 5,501,003 6,869,155
Average price of copper per pound, $US 3.64 1.66
Average price of zinc per pound, $US 1.09 0.56
Operating cash cost DMT* $94.42 $79.46
9

Cusi – Production and Cost Projections
2008R
April-Dec
2009E
Q4
2010E
Tonnes processed 11,378 18,000 72,000
Daily throughput 43 200 200
Lead grade 3.01% 0.39% 0.39%
Silver g/t 2,022 330 330
Silver recovery 62.04% 60% 85%
Lead concentrate production DMT 304 580 5,300
Silver production (ounces) 68,967 115,000 650,000
Operating cash costs/DMT* $178.41 $63.40 $52.00
Average price of lead per pound, $US $0.83 $0.65 $0.65
Average price of silver per onze, $US $14.13 $12.00 $12.00
The Company has not completed a feasibility study and accordingly there is no certainty that the stated objectives will be met, nor
that the operations will be profitable
10

Dia Bras – Operating Performance
2007 2008 2009E 2010E
CA$ CA$ CA$ CA$
Sales 24,056,537 21,306,788 11,779,246 21,825,155
Sales expenses and ore transportation 9,160,863 7,092,672 3,473,647 1,845,011
Operating expenses Bolivar 9,011,119 8,745,062 4,157,963 7,393,266
Operating expenses Cusi 4,956,348 2,463,196 979,108 3,916,433
Administration expenses and others 5,613,356 5,068,334 2,575,432 2,220,200
Total cost 28,741,685 23,369,263 11,186,181 15,374,909
Cash flow from operating activities (4,685,148) (2,062,475) 593,064 6,450,246
Exploration Bolivar & Cusi (5,948,050) (5,183,496) (2,031,483) (2,220,200)
Property payments (1,408,958) (851,791) (1,509,736) (888,080)
Operation-Capex (6,570,456) (995,385) (356,166) _
MRI settlements and debts 1,319,695 (1,987,358) (4,449,281) (1,998,180)
Use of proceeds (12,607,768) (9,018,210) (8,346,666) (5,106,460)
Bolivar Mill _ _ (7,215,650) _
Cyanidation plant _ _ (1,665,150) _
Equity Completed 1,488,813 2,044,000 3,809,205 _
Equity Required _ _ 10,083,250 _
Debt _ 2,012,000 2,775,250 _
Net Cash flow (15,804,103) (7,024,486) 33,303 1,343,786
Cash flow from operating activities excludes changes in non-cash working capital items
Non-GAAP Measure. Cash operating cost is calculated using tonnes processed
Price assumptions: 2009 (US$: Zn $0.65/lb, Cu 2.00/lb, Ag 12.00/oz), 2010 (US$: Zn $0.70/lb, Cu $2.00, Ag 12.00/oz)
11

Bolivar Cu-Zn Property
12

Bolivar Geochemical Anomalies - Mo, Cu and Zn
Fault
Felsic Dike
Bolivar NW
Bismark
Titanic
Rosario
La Foto
Brecha Linda
San Francisco
Selena
San Angel
La Increible
El Gallo
Banda Fault
13

Bolivar – La Increible Area
(screened rocks)
14

Bolivar Resources
Calculated by Yann Camus, Eng., SGS Geostat Ltd.
Resources situation on the 2008-09-25
Prices used for calculation are Cu: 2.00 $/lb, Zn: 1.00 $/lb, Au: 500 $/oz, Ag: 10 $/oz
Table 1
TOTAL of Measured+Indicated resources of the Bolivar
Cutoff on
SG %
%
Au
Ag %
the %Cueq Classification
Measured +
Tonnes (t/m3) Cu
Zn
(g/t) (g/t) Fe
1.00 Indicated 1,188,800 3.33 1.26 2.35 0.28 30.7 11.1
Metal weight
Measured +
33,010,000 lbs 61,590,000 lbs 10,620 oz 1,170,000 oz
1.25 Indicated 939,100 3.34 1.39 2.88 0.30 34.5 11.4
Metal weight
Measured +
28,790,000 lbs 59,640,000 lbs 8,950 oz 1,040,000 oz
1.50 Indicated 738,400 3.36 1.51 3.56 0.32 38.0 11.0
Metal weight 24,530,000 lbs 57,990,000 lbs 7,520 oz 900,000 oz
Table 2
TOTAL of Inferred resources of the Bolivar Project
Cutoff on
the %Cueq Classification Tonnes
SG
(t/m3)
%
Cu
1.00 Inferred 6,290,100 3.28 1.18 0.99 0.30 26.4 15.1
Metal weight 163,080,000 lbs 137,090,000 lbs 61,220 oz 5,340,000 oz
1.25 Inferred 4,506,000 3.29 1.34 1.22 0.33 30.9 15.3
Metal weight 133,470,000 lbs 121,650,000 lbs 48,140 oz 4,470,000 oz
1.50 Inferred 3,337,600 3.30 1.48 1.52 0.35 35.0 15.2
Metal weight 108,760,000 lbs 112,010,000 lbs 37,590 oz 3,750,000 oz
Notes:
1. CIM definitions were followed for the resource estimate.
2. A minimum width of 2 m was used for a mineralized zone.
3. Densities of mineralized rock are indicated in the tables.
4. Price Assumptions (US$): Cu 2.00/lb, Zn 1.00/lb, Ag 10.00/oz, Au 500.00/oz
%
Zn
Au
(g/t)
Ag
(g/t)
%
Fe
The cutoff grade applied in
• upper skarn is 2.5% CuEq
• lower skarn is 1.50% CuEq
16

Cusi – Primary Targets
17

Cusi – Potential Tonnage
18

Cusi – Promontorio
“J”
“H” “C”
Intersection of H, C and
El Contacto Veins
“El Contacto”
Intersection Zone
Between
Promontorio Vein
Potential
tonnage
“J” Vein 100,000 t
“H” Vein 82,500 t
“C” Vein 75,000 t
“El Contacto” Vein 82,500 t
Intersection of H, C
and El Contacto Veins 125,000 t
Total 465,000 t
19

Dia Bras - Cusi Resources
Cusi Project
Resources - Total of Promontorio and Santa Eduwiges Structures
Calculated by Yann Camus, Eng., SGS Geostat, Resources situation on 2008-03-31
Silver equivalent is calculated using the formula: %AgEq=%Ag+70.1*ppm Au+62.2*%Zn+43.3*%Pb
Cut-off at 120 g/t AgEq, 2m minimum horizontal width for structures, density of 2.7
Classification Tonnes
Au
(g/t)
Ag
(g/t)
Cu
(%)
Notes:
1. CIM definitions were followed for the resource estimate
2. Price assumptions used for the AgEq calculation (US$): Ag 11.00/oz, Au 600.00/oz, Cu 2.00/lb, Zn 1.00/lb, Pb 0.65/lb
3. A minimum width of 2 m was used for a mineralized zone
4. Mineral resources that are not mineral reserves do not have demonstrated economic viability
Pb
(%)
Zn
(%)
AgEq.*
(g/t)
Ounces
of Ag
Ounces of
AgEq.
Measured 11,000 0.05 207 0.04 0.47 0.51 263 76,380 96,650
Indicated 223,000 0.12 186 0.05 0.81 0.84 282 1,336,870 2,024,500
Measured +
Indicated 234,000 0.12 187 0.05 0.8 0.82 281 1,413,260 2,121,160
Inferred 1,394,000 0.24 188 0.06 1.15 1.14 326 8,434,810 14,614,410
20

Cusi Mill Process
Process
(Month)
Malpaso Mill Flotation
Metric
Tones
Ag
%
Pb
%
Thickener
Zn
%
6,000 330 0.39 0.71
Taillings
Cyanidation
Metric
Tons Ag g/t
5,817.2 132
Recovery 64.46%
2009 Mineable Resources
Classification Ton. Ag (g/t) Pb % Zn %
Indicated 63,000 330 0.39 0.71
Cyanidation
Vats
Precipitation
Tailing
dams
Summary
Flotation Concentrate
Ton. Ag
g/t
Pb.
%
Silver Conc. 183 6,500 16.5 10.0
Recovery 60%
Contents
(kgs)
Head Ag. g/t 330 1,980
Flotation recovery % 60 1,188
Cyanidation recovery % 25 495
Total recovery % 85 1,683
Zn
%
21

Dia Bras 2009 Challenges & Priorities
Bolivar
■ Raise financing for construction of a mill near the Bolivar Mine (US$6.5 M)
� Process at Malpaso Mill 200 tpd high-grade material from Bolivar and
generate positive cash flow at forecasted metal prices
� Exploration program to expand and upgrade resources
� Further reduction of direct operating costs
Cusi
� Metallurgical testing has been completed showing silver recovery of 85%
by combined flotation and cyanidation methods
� Start Cusi operations in August 2009 at 6,000 tpm with the flotation
circuit and in parallel build the cyanidation system (US$1.5 M)
� Exploration program to expand and upgrade resources
� Expand production to 15,000 tpm by late 2010 by mining high grade silver
from Promontorio
Position the Company for the commodity markets recovery and pursue
M&A activities to enhance the value of the Company
22

June 2009 � 23