Category: Uncategorized
- Published: 29 November -0001
News Release: New Dolores Model Significantly Increases Measured and Indicated and Global Gold Resource
Minefinders Corporation Ltd. President & CEO, Mark Bailey is pleased to report that a new interim resource model of the Company's Dolores gold and silver deposit in Chihuahua, Mexico has defined significant increases in the tonnage, grade and contained gold in the Measured and Indicated ('M & I') resource categories and in the global resource of the deposit.
The updated resource model reflects the results of infill drilling on the 2,200 meter long Dolores main zone deposit since June 2002. The drill program was designed to add the drilling density required to fill in gaps in the deposit database for feasibility purposes. A final resource model will be presented in the context of the final economic mine plan and feasibility study. Most notably, the new model demonstrates an increase in contained gold of 34% in the Measured resource category and 27% in the combined M & I resource categories (see Table 1). The overall tonnages of Measured resource increased by 32.6% and M & I resource increased 18.6%. These increases equate to bringing 498,104 ounces of inferred gold into the M & I categories (an increase of 27%), increasing the total M & I resource to 84.8 million tonnes containing 2.33 million ounces of gold and 116.2 million ounces of silver (at the 0.3 gpt Aueq cutoff). The global resource now includes an additional 39.5 million tonnes of Inferred resource containing an additional 1,105,709 ounces of gold and 39,754,000 ounces of silver.
The increase in gold grade throughout the deposit, as a result of
the more closely spaced definition drilling, should positively affect the economics of the final mine plan. As an example, using the 0.5 gpt Aueq cutoff grade, the new M & I gold resource increased by 28%, or 469,432 ounces (to 2,146,706 oz), and the silver resource increased 8%, or 7,506,687 ounces (to 105,507,823 oz), from the resource model reported in August 2002.
Significantly, the more closely spaced drill holes have reduced the impact of previously inferred silver resource in the central
portion of the deposit, as drilling encountered higher gold and lower silver grades within, and adjacent to, this area of the deposit. As a result, the increase in contained gold in the new model is greater than the increase in contained silver in the M & I categories and in total contained silver in the Inferred category.
Discussion of Results.
The 2002-03 Dolores drill program saw the completion of an additional 87 diamond core holes, totaling 31,211 meters, and 52 reverse-circulation holes, totaling 9,311 meters, since late June of last year. A total of 444 holes, comprising 102,500 meters, has now been completed at Dolores. Drilling continues at Dolores, with three core rigs and one reverse-circulation (RC) rig working on the property.
In an August 2002 audit, the criteria used by the Company to define M & I resources were determined to be acceptable by Pincock, Allen & Holt. The Company has used the same criteria for the updated resource model. Search distances are 40 x 35 x 30 meters for M & I (along strike, down dip, across strike) resource. Those blocks within a 20 x 17.5 x 15 meter search of data are tagged as 'measured'. Inferred resources are classified by 120 x 90 x 60 meter search distances.
Roscoe Postle Associates Inc. ('RPA') has been contracted to provide an independent audit of the final resource model incorporated into the feasibility study presently underway. RPA has undertaken initial reviews of the geology, methodology, procedures and parameters followed by Minefinders in sampling RC cuttings and drill core, drill logging, sample preparation and data collection techniques, assay and quality control procedures, database compilation, as well as the geological interpretation and controls of mineralization used for calculation of the resource. RPA personnel have also completed a site visit to examine the property as well as representative drill core and sample handling procedures.
Future growth of the Dolores deposit is expected to come from additional infill drill holes still being added to the present resource model, deep ore shoots already identified and open below the current resource model and step-out drilling on peripheral mineralized areas like the North Dome target.
Feasibility Study Update
The feasibility study, currently being conducted by M3 Engineering & Technology Corp. ('M3') in conjunction with final metallurgical studies by McClelland Labs and Hazen Research, is progressing on schedule. Using this interim resource model, M3 and Independent Mining Consultants, Inc. of Tucson, Arizona will complete pit optimization, mine engineering work and selection of the best process flowsheet leading to a bankable feasibility.
The Dolores main zone deposit is part of a much larger epithermal gold and silver system that will continue to be explored over the coming months in an effort to fully evaluate the total potential of the Dolores district.
Northern Sonora Exploration Update
Drilling commenced on the El Malacate property on May 22 and to date 7 holes have been completed for 1,200 meters. The overall drill program includes drill testing of the previously untested Cerro Palomino and El Ruidito targets in addition to drill testing to follow up on encouraging drill results from an initial 9 hole program completed last year. Exploration will then move on to the La Dura high-grade silver prospect, where an initial 4-6 drill holes will be completed before moving over to the La Bolsa deposit for additional definition and step-out drilling to expand the existing resource. Results from these drill programs will be reported as they become available throughout the next several months.
Minefinders is well financed to complete the planned Dolores feasibility study and exploration work on its properties, with more than $23 million in the treasury.
All drill samples, weighing between 10 kg and 20 kg each, were collected and transported from the site for assay by ALS-Chemex Labs of Vancouver, B.C. and Inspectorate Labs of Reno, Nevada. Blanks and standards are inserted into the sample stream for quality control and a second sample split is maintained on site for check assay and metallurgical testing. Diamond drilling is being conducted by Major Drilling and the reverse-circulation drilling is by Dateline Drilling. Mark H. Bailey, MSc., P.Geo., a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.
On Behalf of the Board of Directors
MINEFINDERS CORPORATION LTD.
Mark H. Bailey, President and Chief Executive Officer
All resource estimates referred to in this disclosure are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the United States Securities and Exchange Commission, and resource information reported in this disclosure may not be comparable to similar information reported by United States Companies. The terms 'Resource(s)'does not equate to 'reserves'and normally may not be included in documents filed with the Securities and Exchange Commission.
Safe Harbor Statement under the United States Private Securities Litigation Act of 1995: Statements in this release that are forward-looking, including statements relating to the size, and growth in size, of the Company's mineral resources and the timing of the further exploration and development of the Dolores Project, are subject to various risks and uncertainties concerning the specific factors identified above and in the company's periodic filings with the Ontario Securities Commission and the U. S. Securities Exchange Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.
CONTACT: TEL: (604) 687-6263 Minefinders Corporation Ltd.
TABLE 1
Interim Resource Measured (using search ellipse of 20m x 17.5m x 15m)
CUTOFF GOLD SILVER Aueq Gold Silver
gpt TONNES gpt GOLD gpt SILVER Grade % %
Aueq (1000's) Au Ounces Ag Ounces gpt change change
0.3 39,750 0.87 1,107,141 44.0 56,250,005 1.60 +34% +30%
0.4 33,721 0.99 1,069,298 49.8 53,992,021 1.82 +34% +29%
0.5 28,449 1.12 1,027,297 56.2 51,439,977 2.06 +34% +29%
0.6 24,449 1.26 988,697 62.4 49,049,229 2.30 +34% +28%
0.7 21,289 1.39 951,301 68.6 46,923,227 2.53 +34% +27%
0.8 18,922 1.51 919,384 74.1 45,056,622 2.75 +34% +27%
1.0 15,576 1.73 865,785 83.6 41,874,321 3.12 +34% +26%
1.5 10,112 2.29 745,535 106.9 34,743,097 4.07 +36% +24%
2.0 6,889 2.91 643,432 130.7 28,953,081 5.08 +39% +24%
3.0 3,790 4.10 499,405 176.7 21,527,921 7.04 +40% +23%
Interim Resource Measured and Indicated (using search ellipse of
40m x 35m x 30m)
CUTOFF GOLD SILVER Aueq Gold Silver
gpt TONNES gpt GOLD gpt SILVER Grade % %
Aueq (1000's) Au Ounces Ag Ounces gpt change change
0.3 84,799 0.85 2,326,305 42.6 116,207,505 1.56 +27% +9%
0.4 71,368 0.98 2,241,826 48.5 111,189,902 1.79 +27% +9%
0.5 59,514 1.12 2,146,706 55.1 105,507,823 2.04 +28% +8%
0.6 50,831 1.26 2,061,865 61.4 100,406,472 2.29 +28% +7%
0.7 44,328 1.39 1,983,404 67.5 96,145,709 2.52 +28% +7%
0.8 39,686 1.50 1,919,474 72.6 92,594,675 2.71 +28% +6%
1.0 33,312 1.70 1,816,485 80.9 86,604,811 3.04 +29% +6%
1.5 22,018 2.22 1,567,750 101.4 71,786,398 3.91 +30% +3%
2.0 14,885 2.80 1,339,438 123.6 59,169,705 4.86 +32% +2%
3.0 7,882 4.01 1,015,301 166.9 42,289,649 6.79 +34% 0%
Interim Resource Inferred (using search ellipse of 120m x 90m x 60m)
CUTOFF GOLD SILVER Aueq Gold Silver
gpt TONNES gpt GOLD gpt SILVER Grade % %
Aueq (1000's) Au Ounces Ag Ounces gpt change change
0.3 39,535 0.86 1,105,709 39.0 39,754,000 1.51 +24% -3%
0.4 32,223 0.99 1,056,214 44.6 37,268,000 1.73 +25% -3%
0.5 26,146 1.14 1,002,567 50.9 34,741,000 1.99 +26% -4%
0.6 21,908 1.29 957,896 56.8 32,486,000 2.24 +27% -4%
0.7 19,011 1.43 921,349 62.3 30,705,000 2.46 +28% -4%
0.8 16,933 1.54 891,414 66.9 29,201,000 2.66 +29% -4%
1.0 14,054 1.75 842,942 74.4 26,678,000 2.99 +30% -4%
1.5 9,882 2.25 742,626 91.4 21,923,000 3.78 +30% -7%
2.0 6,486 2.85 615,338 111.1 17,133,000 4.70 +32% -9%
3.0 3,153 4.07 429,613 151.4 11,432,000 6.60 +32% -10%
(Aueq cutoff grade uses 75:1 Ag:Au and Aueq resource grade uses 60:1
Ag:Au)
FAX: (604) 687-6267 Mark H. Bailey, President and CEO
Website: www.minefinders.com
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