Minefinders eyes satellites at Dolores

Vancouver Re-analysis of low-to-mid grade core samples from the Norte, North Dome, East Dike and Southwest zones has enhanced the economic prospects of Minefinders‘ (MFL-T) Dolores silver-gold project in Mexico.

The boosted assay results are based on total digestion analysis of samples taken from mineralized drill intercepts, compared to the previously reported aqua-regia digestion analytical results.

The program resulted in an average jump in silver grades of 111% at the Norte zone, 358% at the North Dome, 185% in the East Dike area and 350% in the Southwest zone.

The revised assay data results in an overall higher silver grade for satellite targets around the Main zone increasing the potential for higher overall resources. The projected impact of higher silver grades on the current Dolores mine model is an increase in silver production, lower strip ratios, reduced production cost per oz and accelerated cash flows.

So far, 8,000 out of 9,420 samples to be re-analyzed for silver have been complete. The remaining results are expected later this month.

Located in Chihuahua state, the Southwest zone lies adjacent to the south end of the open-pittable Main zone. The Dolores gold-silver project is Minefinders’ main asset. An updated model of the Dolores Main zone, based on gold and silver prices of US$300 and US$5 per oz., respectively, indicates the presence of 67.2 million tonnes grading 0.96 gram gold and 53.6 grams silver per tonne at a stripping ratio of 4.2-to-1. This is equivalent to 2.1 million contained ounces gold and 115.8 million contained ounces silver.

Minefinders has proposed processing the higher-grade mineralization (23.4 million tonnes grading 2.09 grams gold and 124.5 grams silver), representing about 35% of the open-pit resource, through a mill grinding circuit. The residual pulp would then be agglomerated with lower-grade material for standard heap-leach processing. Tests by McClelland Laboratories of Sparks, Nev., projects overall recoveries of 86-89% for gold and 57-65% for silver.

A mine life of 13 years would result in annual production of 138,359 oz. gold and 6.3 million oz. silver, or 242,900 oz. gold-equivalent, at an estimated cash cost of US$149 per oz. and a total cost of US$184 per oz. gold-equivalent. Capital costs are pegged at US$77 million.

Additional infill drilling and engineering work will be required to upgrade the open-pit model to the final feasibility stage. Minefinders believes there is good potential for expanding the project’s overall resource with further drilling beneath the pit and along strike.