Dolores Mine - Sierra Madre
A New Mid-Tier Gold & Silver Producer - Mexico
Minefinders Corporation Ltd., Vancouver, BC., TSX : MFL; AMEX : MFN, is a precious metals mining and exploration company.
The Company's flagship Dolores Mine in theSierra Madre, Mexico commenced production of gold and silver in November, 2008 and is expected to produce more than 1.7 million ounces of gold and 64.4 million ounces of silver from heap-leach operations over a 15.5 year mine life.
In addition to the Dolores Mine we have a pipeline of three advanced exploration properties in the Sonora region of Mexico.
Proven and probable reserves increased 37% from the KCA report to 99.3 million tonnes containing 2.44 million ounces of gold and 126.64 million ounces of silver.
There is potential to increase production from operations by increasing high-grade recoveries with the addition of a mill and by expanding the mine into areas of additional mineralization.
Opportunities for the continued growth of the Company are driven by a pipeline of advanced and grass-roots exploration properties and the development expertise to bring a new mine into production.
Life of mine production has increased to 1,765,606 ounces of gold and 64,354,508 ounces of silver or 3,005,027 ounces of gold-equivalent silver at base case prices of $675 per ounce of gold and $13.00 per ounce of silver.
Total average cash operating costs per ounce of gold and ounce of gold-equivalent silver, based on a ratio of silver to gold of 52:1, are estimated at $297 for the life of the mine.
The updated economics indicate a pre-tax undiscounted net present value of $831 million and a pre-tax internal rate of return of 26% using the base case prices. Sustaining capital costs are estimated at $50 million.
January 13, 2009 – Minefinders Corporation Ltd. announced today that metal production totaled approximately 3,093 ounces of gold and 57,378 ounces of silver in the fourth quarter of 2008. As previously reported, the first pour of gold and silver doré from the Company’s flagship Dolores Mine in Chihuahua, Mexico took place in mid-November, 2008. Shipments to the refiner commenced in early December.
The Company sold 2,440 ounces of gold and 42,800 ounces of silver in the 2008 fourth quarter, all in December. The average realized price was approximately US$843 per ounce of gold and approximately US$10.69 per ounce of silver. Pre-commercial production operating costs, net of sales revenue, are capitalized to mine development costs until the commencement of commercial production which is expected in the second quarter of 2009. Management expects to disclose complete fourth quarter and fiscal 2008 financial results in March 2009.
Our exploration team is composed of experienced professionals in the field with significant experience in the business. We are committed to ongoing exploration as a key driver for future growth.
We have 100% interest in the mineral rights to 14 mineral concessions totaling 28,300 hectares in the State of Sonora. The area encompasses a major mineralized northwest trend.
The district offers easy access to infrastructure and labor markets at Nogales, Sonora.
Minefinders Corporate Office
Minefinders Exploration Office