Minefinders cuts high-grade at Dolores

Vancouver — Minefinders (MFL-T) has cut high-grade gold and silver at its 100% owned Dolores property, situated in northern Chihuahua State, Mexico.

With a 30,000-metre drilling program, under way since June, Minefinders is upgrading its inferred resources at the Delores deposit to the measured and indicated categories in preparation for a bankable feasibility study.

To date, Minefinders has completed 59 core holes totalling 18,200 metres and 32 reverse circulation holes totalling 6,100 metres in its ongoing 2002 infill and step out drill program at the deposit.

Most of the drilling completed so far as been directed to infill the main zone deposit for the final feasibility study. Of the 59 holes drilled to date, only six have been step out holes – three holes on the previously untested south and west flank of the central dome and three holes on the core shed anomaly. Results are still pending for four of these holes.

The company states that most of the main zone deposit has now been drilled off at 25 metre centres, however, some additional infill and deeper drilling in the main resource area is still required.

Dolores is a multi-million-ounce deposit. Using a base-case cutoff grade of 0.6 gram gold-equivalent, Dolores contains almost 2.4 million oz. gold and 138 million oz. silver in a total resource of 65.4 million tonnes grading 1.13 grams gold and 65.7 grams silver.

The measured and indicated portion alone stands at 43 million tonnes grading 1.16 grams gold and 67.9 grams silver, equivalent to 1.6 million oz. gold and 93.8 million oz. silver. The inferred category contains 22.5 million tonnes grading 1.07 grams gold and 61.6 grams silver, or 772,000 oz. gold and 44.5 million oz. silver.

Results form the most recent batch of assays are as follows;

Diamond drill hole D02-158 cut multiple zones of mineralization. The hole was collared on section 2700, about 75 metres south hole D02-155 (which cut 134 metres averaging 1.32 grams gold and 24 grams silver). The angled hole was mineralized over 309 metres, from 108-to-417 metres down-hole, across a true width of over 200 metres. Minefinders states that this zone contained the highest silver grades encountered to date on the property.

Highlights from hole 158 are as follows; 42.4 metres averaging 1.26 grams gold and 710.7 grams silver per tonne. This included a 4.6 metre interval that averaged 5.5 grams gold and 6,135.1 grams silver (178.94 oz per ton), as well as a 2-metre-section that ran 8.71 grams gold and 13,410.2 grams silver (391.13 oz per ton). A second interval, further down the hole, cut 58 meters averaging 1.7 grams gold and 16.2 grams silver and included a 19-metre section that averaged 3.42 grams gold and 35.6 grams silver.

A reverse circulation drill hole, D02-R180, collared on section 2800 at the south end of the main zone deposit also cut numerous zones of mineralization. These included; 9.14 metres averaging 2.3 grams gold and 139.5 grams silver, including a 3.05-metre section that averaged 6.12 grams gold and 147.5 grams silver. Further down-hole, D02-R180, 10.67 metres was intersected averaging 0.99 gram gold and 158.6 grams silver. This included a 4.57-metre interval that assayed 1.9 grams gold and 293.7 grams silver.

Minefinders states that this area of the property, around the south end of the main zone, has seen only limited drilling and no holes had been previously drilled on section 2800.

Hole D02-161 also cut multiple zones of mineralization. Highlights include; 9.5 metres averaging 0.22 grams gold and 119.2 grams silver; a 6-metre interval grading 0.798 grams gold and 107.7 grams silver; and a 22-metre interval averaging 2.07 grams gold and 93.1 grams silver.

Results are still pending for an additional 4,039 metres of core and 138 metres of reverse-circulation cuttings. The company reports that an additional 3,264 metres of core from holes completed prior to the holiday break still have to be logged and split before being transported to the lab for analysis.

Drilling is scheduled to recommence during the week of January 13, 2003, following the holiday break. The next phase of drilling will step out to test new targets on the Dolores property.

Metallurgical samples have been shipped to several labs for test work in the coming months. In addition to pulp-agglomeration column leach test work, a SAG mill grind and agitated leach test will be completed. The company states that this test work will be conducted in order to evaluate a possible alternative to a heap leach operation.

A bypass road around the Dolores deposit has been permitted and construction has commenced. The road will consist of six km of bypass that will provide an unimpeded access route around the planned mine site.

The Dolores project is set in the rugged terrain of the Sierra Madre Occidental range in the west-central part of the state, 250 km west of the city of Chihuahua, near the Sonora border. The property can be reached by a 4-hour drive along 90 km of rough dirt logging roads from the town of Madera (pop. 35,000). A small local landing strip lies close to the property.

The deposit is a low-sulphide, epithermal, quartz-adularia-sericite system structurally controlled by north-northwest striking, high-angle shear zones. The mineralized trend occurs in a series of volcanic rocks dominated by andesite flows, flow breccias and tuffs that are conformably overlain by felsic volcaniclastics and intercalated latitic flow rocks.

Minefinders has 24 million shares outstanding, or 29.9 million on fully diluted basis. Echo Bay Mines (ECO-T) owns a 15.1% stake of the company’s outstanding shares.