Minefinders Corporation Ltd.

Minefinders Corporation Ltd.

May 13, 2005 09:00 ET

Minefinders Reports Summary of Activities and First Quarter 2005 Financial Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 13, 2005) - Minefinders Corporation Ltd. (the "Company") (TSX:MFL)(AMEX:MFN) has released its unaudited interim financial results for the three month period ending March 31, 2005.

All dollar amounts in this news release are stated in US currency.

Summary of Activities


The Company's bankable feasibility study on its 100% owned Dolores gold and silver deposit, in Chihuahua, Mexico, continues to progress towards completion. The study is expected to be completed in a few weeks and will be reported as soon as available.

Exploration and condemnation drilling, as well as infrastructure building, continues at Dolores in preparation for a positive mine construction decision in 2005. This program is designed to test deep mineralization and additional mineralized targets identified on the 27,000 hectare Dolores property.

Northern Sonora

The Company is conducting exploration programs on several of its properties, including a 30 hole drill program underway on the Planchas de Plata silver property in northern Sonora, Mexico. Ten holes have been completed, but no assays have yet been received. Results will be reported when available.

Separately, a six-hole drilling program was completed in April on the Real Viejo silver prospect, located approximately 10 kilometers northwest of the Planchas de Plata district. Results from this program will be reported when available.

Financial Highlights

The Company recorded a net loss for the quarter ended March 31, 2005 of $0.494 million ($0.01 per share), compared with $0.242 million ($0.01 per share) in 2004.

The Company maintained high cash balances and working capital throughout the first quarter of 2005. At March 31, 2005, the Company had working capital of $38.67 million, compared with $43.5 million at March 31, 2004 and $41.76 million at December 31, 2004. The most significant change in working capital in the first quarter was the increase in deferred mineral exploration expenditures from $1.468 million in the first quarter of 2004 (including a charge of $0.110 million for stock option compensation) to $2.388 million in 2005. In the first quarter of 2005, the Company conducted exploration programs on the Dolores, Planchas de Plata, Real Viejo projects, and in Nevada. The Company's cash and cash equivalents are held primarily in Canadian dollars. In the first quarter the US dollar value of those balances fell because of the appreciation of the exchange value of the US dollar from US$0.8319 at December 31, 2004 to US$0.8267 at March 31, 2005. The Company had a resulting loss in the first quarter of $0.302 million, reversing part of the substantial currency exchange gain experienced in the second half of 2004.

Additional Information

This summary of financial highlights should be read in conjunction with the Company's unaudited interim consolidated financial statements for the three months ended March 31, 2005 and the Management Discussion and Analysis for the same period. Both of these documents are available at http://www.sedar.com, or from the Company.


Mark H. Bailey, President and Chief Executive Officer

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 Company's mineral projects, 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 Information

  • Minefinders Corporation Ltd.
    Mark H. Bailey
    President and Chief Executive Officer
    1-866-687-6263 or (604) 687-6263
    (604) 687-6267 (FAX)