Minefinders Encounters High-Grade Gold and Silver Intercepts in the South Extension at the Dolores Mine
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/12/10 -- Minefinders Corporation Ltd. (TSX: MFL)(NYSE Amex: MFN) is pleased to report high-grade intercepts from the deep drill program currently underway at the South Extension target area at the Company's Dolores Mine in Chihuahua, Mexico.
Significant grades encountered to date include 2.0 metre intervals assaying 73.24 grams per tonne ('gpt') gold and 4,986.7 gpt silver in hole DD-540, 41.76 gpt gold and 722.1 gpt silver in DD-522 and 9.57 gpt gold with 637.7 gpt silver in DD-518. On a gold equivalent ('Aueq') basis, using a silver to gold ratio of 60 to 1, these intervals represent 156.3 gpt Aueq, 53.8 gpt Aueq and 20.2 gpt Aueq, respectively. A compilation of intercepts from the recently completed core holes considered significant to the underground potential of the South Extension is provided in Table 1 below.
The South Extension deep core drilling program is designed to explore for high-grade underground potential immediately south of the current open pit deposit in a target area 600 metres long by 300 metres wide. Thirty drill holes representing 13,200 metres of drilling have been completed during the last several months and the results to date are highly supportive of future delineation of underground reserves. The Company is assessing conceptual underground mining scenarios to assist in focusing deep drilling targets and ultimately to determine the economic feasibility of operating an underground mine at Dolores in addition to the current open pit operation. Minefinders is concurrently conducting a study on the construction of a mill at the Dolores Mine which would treat both high-grade ore from the open pit and process this additional underground ore.
Mineralization established in the South Extension is not included in any reserve or economic analysis to date and further drilling and geologic assessment of the South Extension target area is required to upgrade the mineralization into reportable resource categories.
The shallow, more extensive, lower grade intercepts encountered during the South Extension deep drill program and shallow drill intercepts from within the confines of the planned pit are not reported here. However, this data will be incorporated into further delineation of the current in-pit reserves and to assess the possible expansion of the open pit to the south. Assays from an additional 6 drill holes remain outstanding and the core rig continues to drill within the South Extension area.
Table 1:
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From To Length Length Au Ag Aueq(2)
DH No. (m) (m) (m)(1) (ft)(1) gpt gpt gpt
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DD-511 347.7 349.7 2.0 6.6 7.148 5.1 7.2
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DD-512 244.0 252.0 8.0 26.3 2.012 28.3 3.2
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Includes: 250.0 252.0 2.0 6.6 3.690 176.5 6.6
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DD-513 368.0 370.0 2.0 6.6 1.783 277.7 6.4
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And: 414.0 416.0 2.0 6.6 3.366 36.0 4.0
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DD-514 382.0 384.0 2.0 6.6 2.449 141.7 4.8
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DD-518 24.0 26.0 2.0 6.6 9.566 637.7 20.2
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DD-519 32.0 36.0 4.0 13.1 2.485 232.5 6.4
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Includes: 34.0 36.0 2.0 6.6 4.110 343.0 9.8
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DD-520 28.0 30.0 2.0 6.6 1.273 260.3 5.6
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DD-521 186.0 188.0 2.0 6.6 3.536 9.9 3.7
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DD-522 210.0 212.0 2.0 6.6 41.759 722.1 53.8
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DD-524 380.0 382.0 2.0 6.6 3.908 7.5 4.0
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DD-526 156.0 158.0 2.0 6.6 0.681 387.7 7.1
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And: 370.0 372.0 2.0 6.6 2.739 258.8 7.1
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DD-527 158.0 164.0 6.0 19.7 2.214 60.5 3.2
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And: 210.0 214.0 4.0 13.1 1.407 105.4 3.2
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DD-528 74.0 76.0 2.0 6.6 4.043 2.5 4.1
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And: 256.0 262.0 6.0 19.7 3.331 64.0 4.4
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DD-529 226.0 228.0 2.0 6.6 0.063 607.4 10.2
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And: 258.0 266.0 8.0 26.3 1.598 219.4 5.3
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DD-532 270.0 288.0 18.0 59.1 2.050 82.8 3.4
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Includes: 284.0 288.0 4.0 13.1 1.477 218.9 5.1
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D-533 212.0 214.0 2.0 6.6 1.215 209.4 4.7
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And: 264.0 266.0 2.0 6.6 1.994 241.2 6.0
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DD-534 498.0 500.0 2.0 6.6 2.244 61.0 3.3
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DD-539 620.0 622.0 2.0 6.6 8.946 2.5 9.0
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And: 664.0 666.0 2.0 6.6 2.967 12.5 3.2
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DD-540 458.0 460.0 2.0 6.6 73.236 4,986.7 156.3
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And: 466.0 468.0 2.0 6.6 1.212 126.5 3.3
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(1) Intercept length may not indicate true width.
(2) Aueq calculated at a silver to gold ratio of 60 to 1.
Quality Control and Assurance
All analyses reported are fire assay analyses for gold and multi-acid digestion with AA analyses or fire assay analyses for silver, and completed by either Chemex Labs of Vancouver, Canada or Inspectorate Labs of Sparks, Nevada. Samples from the reported intervals were comprised of HQ core all representatively split prior to analysis and transported by the labs to sample preparatory facilities in Hermosillo, Mexico (Chemex or Inspectorate) or Durango, Mexico (Inspectorate).
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 and operates the multi-million ounce Dolores gold and silver mine in Mexico. For more information, please visit our website at www.minefinders.com.
Forward Looking Statements
This release contains certain 'forward-looking statements' and 'forward-looking information' as defined under applicable Canadian and U.S. securities laws. Forward-looking statements generally can be identified by the use of forward-looking terminology such as 'may', 'will', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'continue' or similar terminology. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Certain of the statements made herein by Minefinders are forward-looking and subject to important risk factors and uncertainties, both known and unknown, many of which are beyond the Company's ability to control or predict. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Those factors are described or referred to under the heading 'Risk Factors' in Minefinders' Annual Information Form for the year ended December 31, 2009 and under the heading 'Risks and Uncertainties' in Minefinders' Management's Discussion and Analysis for the quarter ended June 30, 2010, both of which are incorporated by reference herein and are available on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Minefinders does not undertake to update any forward looking statements that are incorporated by reference, except in accordance with applicable securities laws.
Contacts:
Minefinders Corporation Ltd. - Investor Contact
Jonathan Hackshaw
Director of Corporate Communications
Toll Free: (866) 687-6263
Minefinders Corporation Ltd. - Investor Contact
Mike Wills
Investors Relations Representative
Toll Free: (866) 687-6263
www.minefinders.com