MFL Digs Deeper

JOHN REDSTONE, Desjardins Securities (09/22/2010)
"Minefinders’ Dolores gold-silver mine in Chihuahua state began operations in November 2008 and reached commercial production in May 2009. We expect production this year of 73,600ozs of gold and 1.78m ozs of silver (100,700ozs Aueq) at a total cash cost of US$562/oz Aueq. Resources total 3.1m ozs of gold and 149m ozs of silver and are sufficient for a 15-year minelife. To further enhance the value of the Dolores property, the company is evaluating the construction of a mill facility to treat higher-grade ores (from underground and open pit sources). A full feasibility study addressing this option is expected by year-end. . .On Monday, Minefinders announced that initial drilling had discovered a gold and silver system at its La Virginia project in Mexico. . .Highlights include:
  • 12.17g/t gold and 51.5g/t silver over 2.0 meters
  • 5.75g/t gold and 434.3g/t silver over 1.1 meters
  • 1.01g/t gold and 89.9g/t silver over 27.0 meters
Also, last month Minefinders announced that it had discovered the North Dome deposit, a new zone of mineralization approximately 250–400 meters north of the main Dolores pit. The deposit appears to have the potential to host both lower-grade heap-leachable mineralization and higher-grade mill feed. . .The company is also initiating a drill campaign within the quarter to test the North Dome target’s deeper potential, which will also help to upgrade the mineralization to reportable resources."

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