Minefinders Corporation Ltd.

Minefinders Corporation Ltd.

March 30, 2005 09:01 ET

Minefinders Reports on 2004 Financial Results and Operations


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MINEFINDERS CORPORATION LTD.

TSX SYMBOL: MFL
AMEX SYMBOL: MFN

MARCH 30, 2005 - 09:01 ET

Minefinders Reports on 2004 Financial Results and
Operations

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2005) -
Minefinders Corporation Ltd. (the "Company") (TSX:MFL)(AMEX:MFN) reports
on its financial results and operations for the year ended December 31,
2004. All dollar amounts in this news release are stated in U.S.
currency.

2004 Financial Highlights

The Company's financial position at December 31, 2004 remained very
good, with $42.35 million in cash (2003 - $45.68 million) and net
working capital of $41.76 million (2003 - $45 million). At present, the
Company has 36,476,841 shares outstanding (39,916,841 shares, fully
diluted).

The principal sources of funds in 2004 were the exercise of stock
options for $1.25 million, interest of $1.0 million (2003 - $0.4
million) on the high cash balances brought forward from 2003, and the
recovery of value added taxes of $0.9 million. In addition, the Company
had a gain of $3.03 million (2003 - $2.56 million) arising from the
increase in value of the Canadian dollar, in which the Company holds
almost all of its funds, against the U.S. dollar.

The Company recorded a net loss for 2004 of $2.8 million ($0.08 per
share), compared with $3.9 million ($0.12 per share) for 2003. The net
loss reflects higher administration and stock option compensation costs
in 2004; however, these increases were more than offset by a reduced
write-off of mineral properties and exploration costs (2004 - $0.339
million; 2003 - $1.055 million) and by higher interest income earned on
cash balances (2004 - $1.003 million; 2003 - $0.398 million).

After deducting non-cash stock option compensation costs of $1.376
million in 2004 and $1.148 million in 2003, administrative costs
increased from $1.826 million in 2003 to $2.025 million in 2004, as the
Company expanded operations and positioned itself to move from
exploration into development and production at the Dolores gold / silver
project.

Net expenditures on mineral properties increased during 2004 to $6.221
million, from $5.713 million in 2003 and $2.968 million in 2002. These
amounts exclude stock option compensation expense that was charged to
"Deferred Exploration Costs", and an adjustment for differences in
currency exchange rates.

This summary of financial highlights should be read in conjunction with
the Company's 2004 audited financial statements and management's
discussion and analysis thereof, which will be available for review
on-line at www.sedar.com.

Reporting Currency

Effective January 1, 2004, the Company changed its reporting currency
from the Canadian dollar to the United States dollar. Numbers contained
in this News Release are presented as if this policy has been in place
for all relevant periods, using U.S. dollars. The Company's financial
statements are prepared in accordance with Canadian generally accepted
accounting principles.

Change in Accounting Policy

Effective January 1, 2004, the Company adopted new Canadian accounting
standards for stock option expense, and adjusted previously published
numbers to include the effects of this change in the comparative numbers
for previous years.

Summary of 2004 Activities and Development

The Company continued to focus its activities in 2004 on its Dolores
gold / silver project, located in Chihuahua, Mexico. Of total
expenditures in 2004, 74% was incurred on the Dolores project, 14% on
properties in Northern Sonora, and 12% on properties in U.S.A. During
the year, the Company conducted an extensive in-fill drilling program at
Dolores to elevate "Inferred" resources to the "Measured and Indicated"
category and directed a comprehensive feasibility study to bring the
project to a production decision in 2005. A total of 137,070 meters of
drilling have been completed at Dolores as at December 31, 2004.

An audited mineral resource estimate for Dolores was completed in
November 2004 (see News Release dated December 6, 2004) by the
independent consulting firm of Roscoe Postle Associates Inc. ("RPA").
Using a cutoff grade of 0.3 grams of gold per tonne gold-equivalent, the
total measured and indicated resource was 101 million tonnes, containing
2.647 million ounces of gold and 128.179 million ounces of silver.
Resource estimates were prepared in compliance with the requirements of
Canadian National Instrument 43-101 (the RPA report is available at
www.sedar.com). The Dolores feasibility study will determine what
portion of this resource can be economically mined and support the
Company's financing of the development to production of the project.
Other significant milestones in 2004 included receipt of the final
metallurgical reports from SGS Lakefield Research Limited and McClelland
Laboratories and the pit slope design study by Golder Associates.

The Dolores feasibility study has taken longer than anticipated as a
result of work loads experienced by the independent engineering
consultants working on it and the expansion of its scope to include a
mill and flotation circuit as a possible addition to a heap-leach
configuration. This expansion necessitated extensive additional
engineering and metallurgical test work.

After evaluating various alternatives, the feasibility study is now
being finalized on the basis of a large-scale (approximately 25,000
tonnes per day) conventional open pit, heap leach operation and is
expected to be completed within the next 60 days. Upon receipt of a
positive recommendation from the feasibility study, and securing such
debt, or debt and equity, financing as is necessary, the Company expects
to begin equipment and material procurement, project management and
construction later this year.

During 2004, the Company also conducted drilling and field work on its
northern Sonora, Mexico project, at a cost of $1.25 million, and on its
Clear and Dottie projects in Nevada, at a cost of $0.826 million.
Initial results from the northern Sonora exploration show encouraging
potential for significant silver and base-metal deposits on the Planchas
de Plata and Real Viejo prospects. Program results continue to be
evaluated, with follow-up work and significant exploration expenditures
planned for 2005.

Minefinders welcomes shareholders to its annual general meeting, to be
held on June 16, 2005 at 2:00 p.m. at the Vancouver Marriott Pinnacle
Hotel, 1128 West Hastings Street, Vancouver.

The Company will host a conference call tomorrow, March 31, 2005, at
9:00 a.m. (PST) to discuss its financial and operating results for 2004.
Participants may access the Minefinders conference call by dialing 1
(800) 769-8320 (North America), (800) 4222-8835 (International) and
(416) 695-9753 for the Toronto area. When calling please request access
to the "Minefinders Corporation Ltd., 2004 Year-End Results" conference
call with reservation number T558181M. A replay of the conference call
will be available until April 9, 2005 by dialing (416) 695-5797 or 1
(877) 244-9049 pin number 8181.

Mark H. Bailey, MSc., P.Geo., a Qualified Person as defined by National
Instrument 43-101, has overall responsibility for Minefinders' mineral
exploration programs and supervised the preparation of the technical
information in this news release.

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, the timing of the further
exploration and development of its exploration projects, and the timing
of the completion and release of the feasibility study on its 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.

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Contact Information

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