During the quarter, the company processed 28,240 dry metric tons (dmt) of material averaging grades of 5.27% Zn and 1.13% Cu (cumulative production of 58,254 dmt for the first six months of 2007 at 6.04% Zn and 1.24% Cu). In 2006, the company processed 22,584 dmt at grades of 11.17% Zn and 2.19% Cu (cumulative production of 45,045 dmt at grades averaging 12.39% Zn and 2.34% Cu for the first six months of 2006).

Processing of Bolivar material was mostly done at the new Triunfo circuit, where a recovery rate of 87.77% for zinc and 78.17% for copper was achieved during the period (91.87% for zinc and 80.60% for copper in 2006 at the Malpaso circuit). Decreases in recovery rates are due to a combination of lowergrade material being processed and operation of the new Triunfo circuit which remains in fine-tuning mode.

Overall, 2,255 dmt of zinc concentrate and 875 dmt of copper concentrate were produced during the quarter (cumulative production of 5,242 dmt and 2,047 dmt of zinc and copper concentrates) compared with 4,016 dmt of zinc concentrate and 1,413 dmt of copper concentrate in 2006 (cumulative production of 8,784 dmt and 2,834 dmt of zinc and copper concentrates for the first six months of 2006).

During the quarter, direct operating cash costs amounted to $3.6 million ($2.4 million for the same period in 2006). The increase in costs is mainly attributable to increased tonnage of material transported from the Bolivar site and processed at the company's Malpaso milling facilities, higher transport costs due to the inconsistent availability of railroad services, increased labor costs and costs related to the start-up of the new circuit at the Malpaso mill.

Development efforts to access the Selena and Titanic zones, part of the Fernandez trend, resulted in additional lower grade development material being sent to and processed at the Malpaso milling facilities. “We are now processing material from the Selena zone with a marked increase in mill feed grade,” said Dr. Thomas Robyn, executive chairman.

All concentrate is sold to MRI Trading AG, a Swiss-based, privately owned commodity trading company, pursuant to purchase agreement that was renegotiated in May 2007.

Dia Bras said the pilot-mining program provides data on costs, logistics, grade, recovery and metallurgy that will serve for a feasibility study on the Bolivar property. The company expects to complete its exploration program on the Bolivar property and extensions in order to start a feasibility study in 2007.

The Bolivar project is Montreal, Quebec-based Dia Bras’ most advanced asset. The former zinc-copper property is located in the Piedras Verdes mining district, which has a long mining history. The Bolivar property comprises 18 mineral covering approximately 7,549 hectares.