Minefinders encouraged at Dolores

VSE-listed Minefinders is encouraged by results from geological mapping, prospecting and sampling at its Dolores gold-silver property in northern Mexico.

The property is in the Madera mining district, within Chihuahua state, which has a long history of mining activity. Gold was first discovered at Dolores in 1860, but systematic development did not occur until 1898. From 1909 to 1930, production from high-grade quartz veins was estimated at 562,872 tons grading between 0.3 and 2.5 oz. gold per ton.

Thirty miles southwest of Dolores, Placer Dome (TSE) and Kennecott are developing the Mulatos property, which contains a mineral resource of at least 1.3 million oz. gold.

Current work on Dolores has defined a large mineralized area measuring 3,000 ft. wide by 12,100 ft. long. Within this area, the mineralization is concentrated in three en echelon, northwest-trending zones. Additional sampling may prove that the three zones are in fact one large zone of continuous mineralization.

The mineralization, consisting of native gold, galena, sphalerite and chalcopyrite, occurs in a sheared, brecciated and silicified intercalated sequence of andesite, rhyolite and felsic intrusive rocks.

To date, some 400 samples have been collected returning values up to 0.34 oz. gold together with 18.6 oz. silver. The best continuous assay was 0.037 oz. gold and 1.35 oz. silver across 150.8 ft. Although not always correlatable with the high gold values, silver values can be quite significant with the ratio of silver to gold reaching as high as 55-to-1.

“We’re very pleased with the current results,” Minefinders President Dale Hendrick tells The Northern Miner. “Our ultimate aim is to outline a bulk-minable deposit.”

Minefinders can earn a 100% interest in Dolores by paying US$175,000 over an 18-month period, followed by quarterly advance royalty payments of US$25,000 until commercial production is achieved or until the payments total US$1.5 million. Upon commercial production, the vendor will receive a 3.25% net smelter return royalty.

The first phase of exploration is expected to be completed in October. Meanwhile, a second phase of detailed mapping, sampling and structural interpretation is planned and this will be followed by 10,000 ft. of reverse circulation drilling.

Chief financial officer James Brown says the company is well-funded to complete the additional work. It has about $500,000 in cash and the potential to raise a further $1.25 million through the exercise of warrants. Additional financing is being negotiated.

In recent months, Minefinders has undergone a management change, with Hendrick, who is also chairman and chief executive officer, replacing Marc Henderson as president. In addition to being the corporation’s chief financial officer, James Brown is also Minefinders’ vice-chairman.