Vancouver-based
Each unit comprises one share and one non-transferable warrant allowing the holder to buy an additional share at $1.15 for two years.
Subscribers included
A portion of the proceeds will be used to finance exploration of the company’s properties in northern Sonora state, Mexico. Minefinders’ main asset is the Dolores gold-silver project, in the adjacent state of Chihuahua. An updated model of the Dolores open pit, 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.
Minefinders has $2.1 million in its treasury, with 18.5 million shares outstanding, or 21 million on a fully diluted basis.
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