Categories: Precious Metals
Topics: General Precious Metals

Minefinders' Dolores produces 2,700 oz Au in January

 2009-02-23 09:15 ET - News Release

Mr. Mark Bailey reports

MINEFINDERS CELEBRATES THE INAUGURATION OF THE DOLORES GOLD AND SILVER MINE AND PROVIDES DOLORES MINE UPDATE

Minefinders Corp. Ltd. celebrated the official inauguration of its Dolores gold and silver mine in Chihuahua, Mexico, on Feb. 17 and 18. The company also provided an update on production at the Dolores mine and announced the receipt of a social responsibility award. The Dolores mine is expected to produce in excess of 1.7 million ounces of gold and 64 million ounces of silver over a more than 15-year mine life.

"This inauguration represents the culmination of over 14 years of exploration and development by Minefinders at the Dolores site," commented Mark Bailey, president and chief executive officer. "I would like to recognize and thank our employees, shareholders, the Mexican federal, state and municipal governments, the residents of Dolores and others for their support and hard work to bring the Dolores mine to fruition."

The inauguration events brought together representatives from state, federal and municipal governments, political and community leaders, members of the Ejido Huizopa, key supporters, shareholders and employees. Keynote speakers included the Canadian Ambassador to Mexico, Guillermo Rishchynski; the Mexican Federal Minister of Mining, Maria Jimena Valverde Valdes; Chihuahua state secretary, Sergio Granados; and president and chief executive officer of Minefinders, Mr. Bailey.

Minefinders also invited the community at large to celebrate this milestone with a performance by the famous "Ballet Folklorico de Mexico de Amalia Hernandez" at Chihuahua's Teatro de la Ciudad. More than 600 guests attended.

Dolores mine update

The mine remains on target to achieve commercial production in the second quarter of 2009.

 

  • Production totalled approximately 2,700 ounces of gold and 50,000 ounces of silver in January, 2009. By midmonth, production in February had already exceeded the total production in January. As the volume of ore under leach and time under leach increase, Minefinders expects the rate of production of gold and silver to continue to escalate rapidly.
  • Costs are continuing to decrease and the company expects cash costs to decrease to the life of mine average in the second quarter. Precommercial production operating costs, net of sales revenue, are capitalized to mine development costs until the commencement of commercial production.
  • The crushing and stacking rate has averaged approximately 16,500 tonnes processed per day in February, 2009, to date, compared with approximately 13,000 tonnes per day in January, 2009. Overall crushing plant availability continues to improve along with operator experience levels. Recent production levels have periodically exceeded the planned rate of 18,000 tonnes per day with in excess of 21,000 tonnes per day processed.
  • Tonnes stacked and under leach continue to increase with approximately 1.6 million tonnes of ore stacked to the leach pad and over 1.2 million tonnes under leach at Feb. 23, 2009.
  • Grades in ore stacked to the leach pad and solution grade to the pond continue to increase as mining progresses into the mineral deposit and tonnes under leach increases. In addition, recovery rates of contained gold and silver are exceeding expectations.

 

Compania Minera Dolores, a wholly owned subsidiary of Minefinders, was awarded in February the distinction as a "socially responsible company" by the Mexican Philanthropic Center, a non-governmental organization dedicated to the promotion of socially responsible organizations. This award recognizes the company's legal compliance and ethical policies in addressing social and environmental issues related to the development of the Dolores mine.

"This award recognizes and validates the company's diligence in ensuring the highest ethical standards in fulfilling its social and environmental responsibilities," commented Gregg Bush, vice-president, operations. "Minefinders is committed to sound environmental management practices and social and economic development in the Dolores region and will continue to make this a high priority."

Recent photos of operations at Dolores and of the mine inauguration can be viewed at the company's website in the Dolores gallery.

Qualified person

Mr. Bailey, MSc, PGeo, is the "qualified person" with overall responsibility for the Dolores project and is responsible for the contents of this news release.

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