Minefinders Corporation Ltd.
TSX : MFL
AMEX : MFN

Minefinders Corporation Ltd.

April 25, 2007 08:41 ET

Minefinders Corporation Ltd.: 2006 Drilling Expands High-Grade Gold and Silver Mineralization at Dolores

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 25, 2007) - Minefinders Corporation Ltd. (the "Company") (TSX:MFL)(AMEX:MFN) reports the final results of 2006 drilling at its advanced Dolores gold and silver project, in Chihuahua, Mexico.

The 2006 program was successful in expanding high-grade underground resources that are believed to be convertible into reserves and in extending high-grade gold and silver mineralization in several target areas beyond the planned open pit mine. In addition, several holes drilled at the end of the year encountered new zones of significant mineralization.

Core and reverse circulation ("RC") drilling at Dolores in 2006 was continuous during the mine ramp-up and construction process. A total of 40,371 meters of drilling was completed, of which 42 core holes and 12 RC holes, totaling 18,555 meters, were dedicated to exploration and the expansion of resources and reserves. The remaining drilling provided necessary data for site condemnation, water exploration, and engineering studies. Over 680 meters in large bore water supply wells were also drilled.

An updated, independent estimation of Dolores project resources incorporating the results of the 2006 drilling is expected to be available for release shortly.

Details of 2006 Exploration and Resource Expansion Drilling

Exploration and resource/reserves expansion drilling at Dolores in 2006 focused on four objectives:

- Resource expansion in the high-grade Central Breccia Zone beneath the deepest part of the planned open pit, where overall grades, continuity, and wide mining widths are believed to support recovery via low-cost bulk underground mining techniques.

- The definition of narrower, high-grade structures (1 to 4 meters in width), located peripheral to the pit area, that could be mined by classic underground mining techniques.

- Reserves expansion through the upgrading to "measured and indicated" status of in-pit and near-pit "inferred" resources (primarily south of the current planned pit) for the purposes of ongoing open pit evaluation.

- Resource expansion in areas not included in the current global project resources that could contribute additional reserves to the project later during the mine life. Targets included those generated by the unexpected intersection of significant mineralization in condemnation drilling.

The results of the 2006 drilling are presented under headings corresponding to these objectives, below.

- Resource Expansion in Peripheral High-grade Zones beneath the Planned Open Pit

Drilling to expand resources in the area of the Central Breccia Zone, and to define narrower high-grade structures, encountered significant mineralization below and peripheral to the margins of the planned open pit mine. Much of this material should be convertible to reserves amenable to underground bulk-tonnage and more traditional stoping extraction techniques. Based upon encouraging initial internal analyses, the Company will commission a feasibility study of the development of these zones to determine their overall economic impact as a compliment to surface mining.

Significant results from drilling in these zones are set out in Table 1, below:



Table 1 - 2006 High-grade Peripheral Drill Intercepts beneath the Planned
Dolores Open Pit
-------------------------------------------------------------------------
Length Gold Silver Aueq
Drillhole From To (meters) (gpt) (gpt) 60(i)
-------------------------------------------------------------------------
D06-443(ii) 426.0 530.0 104.0 2.920 42.9 3.81
including 460.0 485.0 25.0 6.420 117.5 8.38
including 481.0 485.0 4.0 21.597 45.3 22.35
and 514.0 519.0 5.0 6.980 31.4 7.50
D06-449(ii) 446.0 527.0 81.0 3.120 39.6 3.78
Including 446.0 452.0 6.0 19.615 182.0 22.65
and 483.0 492.0 8.0 6.240 43.6 6.97
and 496.0 498.0 2.0 5.38 9.8 5.54
and 502.0 504.0 2.0 7.49 15.6 7.75
D06-453 482.0 530.0 48.0 5.752 76.3 6.09
including 490.0 516.0 26.0 8.616 22.6 8.99
D06-466 497.0 499.0 2.0 11.383 0.7 11.40
D06-469 476.0 478.0 2.0 30.582 3.2 30.64
D06-473 326.0 328.0 2.0 33.942 1705.1 62.36
and 471.0 473.0 2.0 30.582 713.4 42.47
and 483.0 485.0 2.0 10.200 447.1 17.65
D06-475 178.0 182.0 4.0 8.893 129.5 11.05
D06-479 458.0 462.7 4.7 4.857 122.9 6.91
and 547.0 551.0 4.0 6.245 31.8 6.77
including 547.0 548.0 1.0 14.710 36.0 15.31
D06-R245 149.35 158.5 9.2 2.194 101.5 3.89
-------------------------------------------------------------------------
(i) gold equivalent grades are reported in grams per tonne ("gpt") based
on a 60:1 silver-gold ratio, without regard to metallurgical
recoveries
(ii) previously reported (NR 6/27/06)


- Reserves Expansion through Upgrading In-pit and Near-pit Inferred Resources

The results of infill drilling in 2006 to upgrade the inferred resource in the planned Dolores open pit to "measured and indicated" strongly support previous interpretations and calculations, as shown in Table 2, below:



Table 2 - 2006 Infill Drilling in the Planned Dolores Open Pit
-------------------------------------------------------------------------
Length Gold Silver Aueq
Drillhole From To (meters) gpt gpt 60(i)
-------------------------------------------------------------------------
D06-434 79 173 94.0 1.145 17.3 1.43
D06-435 38 103 65.0 1.015 31.2 1.54
and 195 205 10.0 1.651 97.6 3.28
D06-436 143 151 8.0 1.397 79.4 2.72
And 299 310 11.0 1.093 65.9 2.19
and 334 340 6.0 2.459 16.5 2.73
and 363 408 45.0 1.855 22.0 2.22
D06-437 27 76 49.0 0.797 40.8 1.48
And 174 196 22.0 2.213 36.4 2.82
D06-441 152 180 28.0 0.776 50.0 1.61
D06-445 79 111 32.0 0.253 107.5 2.05
D06-466 333 336.2 3.2 3.438 37.6 4.06
and 413 431 18.0 1.109 28.9 1.59
and 452 458 6.0 1.259 12.1 1.46
D06-473 306 338 32.0 2.379 139.2 4.70
D06-R245 32 57.91 25.9 0.552 104.9 2.30
including 50.29 54.86 4.6 2.463 305.0 7.55
D06-R245 149.35 158.5 9.2 2.194 101.5 3.89
D06-R246 73.15 77.72 4.6 0.924 19.6 1.25
D06-R249 100.59 105.16 4.6 1.400 24.3 1.81
-------------------------------------------------------------------------


The results of 2006 drilling in an area of significant mineralization, located adjacent to and immediately south of the planned Dolores pit, are set out in Table 3, below. The project resource hosted by this area was classified as "inferred" and not included earlier mine-planning. These results are expected to increase the measured and indicated resources (and, in turn, reserves) in this portion of the project.



Table 3 - 2006 Peripheral Infill Drilling South of the Planned
Dolores Open Pit
-------------------------------------------------------------------------
Length Gold Silver Aueq
Drillhole From To (meters) gpt gpt 60(i)
-------------------------------------------------------------------------
D06-454 229.0 241.0 12.0 0.605 305.2 5.69
D06-456 124.0 130.0 6.0 2.453 16.7 2.73
D06-457A 184 218.5 34.5 2.196 89.0 3.68
including 205.5 218.5 13.0 4.139 171.1 6.99
including 205.5 207.0 1.5 11.383 283.5 16.11
D06-459 116 128 12.0 0.886 33.7 1.45
D06-461 114 146 32.0 0.855 17.2 1.14
D06-462 117 155 38.0 1.515 25.8 1.95
D06-462 121.0 131.0 10.0 3.415 37.2 4.04
D06-463 128.0 144.0 16.0 1.952 17.4 2.24
D06-463 189 204 15.0 1.497 74.3 2.74
and 189.0 195.0 6.0 2.709 51.9 3.57
D04-464 136.0 140.0 4.0 12.227 80.5 13.57
D06-R301 160.0 196.6 36.6 0.786 24.3 1.19
-------------------------------------------------------------------------


- Resource Expansion in Areas Not Included in the Current Global Project Resources

In 2006, Company geologists also targeted gold and silver mineralization that had been previously identified at surface, and in earlier drilling, in areas outside the existing global project resources. This work was undertaken with a view to developing resources that could be mined later in the life of the Dolores project.

As discussed, below, drilling on these distal areas generated several interesting intercepts and encountered mineralized zones that will require additional follow-up.

Norte Target Area

The Norte target area includes ground north and along strike of the current planned open pit mine and was originally delineated by surface sampling and geologic mapping early in the life of the Dolores project. Two drill holes completed during the 2000 drill program encountered significant gold and silver mineralization 1,000 meters north of the current planned pit, without follow-up at the time.

The Company completed three holes in this area in 2006, of which results are available for one hole (D06-484), at present. Drill hole D06-R281 was completed at a distance of 450 meters north of the pit, while D06-R276 was collared 230 meters north of the pit. Both holes intercepted narrower, high-grade mineralization on separate structures. Follow-up within, and along strike of, the three mineralized structures is planned as drilling proceeds in 2007.

Significant intercepts from all drilling in the Norte area are set out in Table 4, below.



Table 4 - Norte Target Area, Dolores - Significant Intercepts
-------------------------------------------------------------------------
Length Gold Silver Aueq
Drillhole From To (meters) (gpt) (gpt) 60(i)
-------------------------------------------------------------------------
D06-484 10.0 18.0 8.0 2.045 10.1 2.21
(i)D00-RNT1 1.5 7.6 6.1 1.208 24.5 1.62
(i)D00-RNT2 1.5 15.2 13.7 1.240 15.9 1.50
including 9.1 13.7 5.6 2.468 23.3 2.47
D06-R276 64.0 68.6 15.6 0.640 62.1 1.67
and 83.8 85.4 1.5 2.495 5.5 2.59
D06-R281 64.0 74.7 10.7 2.622 6.3 2.73
including 71.6 73.2 1.5 10.217 13.4 10.44
-------------------------------------------------------------------------
(i) previously drilled in 2000


New Zones

Several areas of gold and silver mineralization were encountered unexpectedly in condemnation drilling in 2006. Intersections included:

- Hole D06-451, which intersected near-surface low grades and a high-grade intercept of 13.2 gpt gold along a structure 280 meters east of the planned open pit.

- Hole D06-483, drilled more than 200 meters to the west of the planned pit area, which intersected 33.5 meters of 1.25 gpt gold equivalent(i) concealed beneath the overlying tuff beds.

- Hole D06-R276, which intersected 21.3 meters of shallow mineralization with values of up to 2.495 gpt gold over 1.5 meters, 3,000 meters east of the planned open pit.

Shallow mineralization was also encountered in the first RC hole of 2007 (D07-R324), which was drilled to confirm and extend mineralization first encountered in 2005 in the area of the proposed heap-leach pad. It is believed that this mineralization can be extracted with nominal impact prior to completion of this phase of the heap-leach facility.

These drill intercepts are set out in Table 5, below. Additional work is planned in the coming months in all four of these areas.



Table 5 - Drilling on New Zones at Dolores
-------------------------------------------------------------------------
Length Gold Silver Aueq
Drillhole From To (meters) gpt gpt 60(i)
-------------------------------------------------------------------------
D06-451 71.3 74.4 2.1 13.219 26.0 13.65
D06-483 317.0 350.5 33.5 0.782 27.9 1.25
Including 319.0 323.0 4.0 2.688 144.5 5.10
D06-R276 62.5 83.8 21.3 0.498 17.4 0.79
Including 82.3 83.8 1.5 2.495 5.5 2.59
D07-R324 4.6 22.9 18.3 1.148 7.6 1.28
12.2 19.8 7.6 1.702 7.9 1.83
-------------------------------------------------------------------------


Summary of 2006 Drilling

The Company's 2006 drill programs at its Dolores gold and silver project successfully established the potential for the underground mining of high-grade ores, extended zones of known mineralization, and located new zones of mineralization requiring follow-up drilling. Reverse-circulation and core-drilling are ongoing, as the Company continues to pursue additional resources and complete all required development activities. An updated, independent estimation of Dolores project resources incorporating the results of the 2006 drilling is expected to be available for release shortly.

Quality Control and Assurance

Drill results reported are assay intervals based on drill intersections and may not be representative of the true widths of mineralization. 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 these intervals were comprised of HQ or NQ core all representatively split prior to analysis and transported by the labs to sample preparatory facilities in Hermosillo, Mexico (Chemex) or Durango, Mexico (Inspectorate).

Mark Bailey MSc., P.Geo. is the "qualified person" with overall responsibility for the Dolores Project and is responsible for the contents of this news release.

MINEFINDERS CORPORATION LTD.

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 potential growth in size, of the Company's mineral reserves and resources, the economic feasibility of, and commencement of mine construction and mining operations at, the Company's Dolores Project 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 ("SEC"). 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.

Cautionary Note to U.S. Investors: The SEC permits mining companies to disclose only those mineral deposits that can be extracted or produced economically in their filings with the SEC. This news release uses the term "inferred resource" that the SEC guidelines prohibit from inclusion in filings with the SEC.

Contact Information

  • Minefinders Corporation Ltd.
    Mark H. Bailey
    President and Chief Executive Officer
    1-866-687-6263
    (604) 687-6267 (FAX)
    Website: www.minefinders.com