Minefinders Reports Delay to First Gold and Silver Pour at Dolores
July 26th, 2008 - Posted in Gold, Gold Mining Companies, SilverMinefinders Corporation reports that the initial gold and silver pour from its Dolores Mine in Mexico has been delayed from mid-July until later this quarter.
The revised timing for initial gold and silver production will affect previously released production estimates for 2008, but should not have an impact on the production estimates for 2009 and 2010. The Company will provide an updated 2008 production estimate in the second quarter news release and conference call in mid-August, details of which will be communicated when available.
As reported on June 9, first gold and silver production was further delayed to mid-July as a result of an illegal blockade established in May at the Dolores Mine by a fringe group of protestors. During the blockade Minefinders suspended mine operations out of concern for the safety of its employees and contractors.
The blockade was removed after intervention by Mexican authorities and Minefinders briefly resumed mine operations in early June. However, the Company was forced to again curtail operations because of threats of violence from protestors who remained on site. Mine operations fully resumed in early July after police arrived to ensure access and safety for the Company’s employees and contractors. While a small group of protestors remain onsite, the Chihuahua state government has provided the Company with a guarantee of ongoing safe access to the mine. The Company is continuing discussions with the state and federal governments and with the individuals responsible for the protest to come to a definitive long-term resolution.
Construction and Commissioning Update
Construction of all critical processing facilities at Dolores is complete. With over 600 employees and contractors working on site, final commissioning of the process facilities is progressing rapidly. The third tertiary crusher has been commissioned and crushing capacity is nearing the planned 18,000 tonnes per day. Mining rates are at plan levels and leaching is expected to commence within the next three weeks.
“With the continued support of the local community and assurance from the Chihuahua state government of unobstructed access to the mine and the safety of our employees and contractors, mine operations and final commissioning of the process facilities are back on track at Dolores,” said Mark Bailey, President and Chief Executive Officer. “Provided there are no further disruptions, we expect to achieve first production of gold and silver this quarter and ramp up to commercial production in the fourth quarter.”
Capital Resources
At June 30, 2008, the Company had available credit and working capital of over $31 million. With initial gold and silver production expected in the third quarter, the Company remains fully funded to complete commissioning of the Dolores Mine, continue the Dolores mill preliminary feasibility study and 2008 exploration programs at Dolores and elsewhere.
Qualified Person
Mark Bailey, MSc., P.Geo., is the “qualified person” with overall responsibility for the Dolores Mine and is responsible for the contents of this news release.
About Minefinders
Minefinders is a precious metals mining and exploration company. The Company is in the final stages of commissioning the multi-million ounce Dolores gold and silver mine in Mexico. The mine is expected to have a more than 15-year life as an open pit mine with additional potential as a high-grade underground mine in the future. The Company continues its exploration efforts on several other prospective projects in Mexico to build a quality pipeline of precious metals projects for future growth.
MINEFINDERS CORPORATION LTD.
Mark H. Bailey, President and Chief Executive Officer
Contacts:
Minefinders Corporation Ltd.
Mike Wills
Investor Contact
(604) 687-6263
(604) 687-6267 (FAX)
Email: mike@minefinders.com
Website: http://www.minefinders.com
Source: Minefinders Corporation Ltd.
