Minefinders Corporation Ltd.
TSX : MFL
NYSE Amex : MFN

Minefinders Corporation Ltd.

July 08, 2009 09:01 ET

Minefinders Reports Second Quarter Production and Sales Results; Sets Time for Full Second Quarter Disclosure

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2009) - Minefinders Corporation Ltd. (TSX:MFL)(NYSE Amex:MFN) today announced second quarter production and sales results. The Company also established timing to release its full second quarter financial and operating results and production outlook for the remainder of the year.

"Metal production has continued to escalate as the Dolores Mine progresses to steady-state production with over 9,000 ounces of gold and over 150,000 ounces of silver produced in June, 2009. This has enabled us to pay down an additional $2.5 million of debt and continue to strengthen our overall financial position," said Mark Bailey, President and Chief Executive Officer. "Our momentum has not been hampered by the rainy season, which began in June, and we see continued growth in the third and fourth quarters of 2009."

Despite a four day federally mandated shut down due to the swine flu outbreak in Mexico, gold production increased to approximately 23,336 ounces in the second quarter of 2009, up 65% from 14,169 ounces in the first quarter of 2009. Silver production was approximately 419,946 ounces in the second quarter of 2009, up 49% from 282,429 ounces in the first quarter. Metal production is expected to continue to increase through the third and fourth quarters of 2009 as the volume of ore and time under leach increases.

Second quarter sales proceeds were $26.0 million compared with $16.1 million in the first quarter of 2009. Second quarter sales volume totaled 22,108 ounces of gold at an average realized price of $937 per ounce and 369,532 ounces of silver at an average realized price of $14.19 per ounce. Minefinders sold 13,313 ounces of gold in the first quarter of 2009 at a realized price of $939 per ounce and 273,381 ounces of silver at a realized price of $13.18 per ounce.

As previously disclosed, the first gold pour took place in November 2008 and commercial production commenced on May 1, 2009.

After market close on Monday, August 10, 2009 Minefinders will release its full second quarter financial and operating results and production outlook for the remainder of 2009. A conference call will follow on August 11, 2009 at 1 p.m. Pacific Time (4 p.m. Eastern Time) to discuss the second quarter results. Access details for the conference call will be provided at a later date.

Recent photos of operations at Dolores can be viewed at www.minefinders.com in the Dolores Gallery.

About Minefinders

Minefinders is a precious metals mining and exploration company and operates the multi-million ounce Dolores gold and silver mine in Mexico. The Company continues its exploration efforts on other prospective projects in Mexico to build a quality pipeline of precious metals projects for future growth.

Forward Looking Statements

This release contains certain "forward-looking statements" and "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue" or similar terminology. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions by management that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Certain of the statements made herein by Minefinders are forward-looking and subject to important risk factors and uncertainties, both known and unknown, many of which are beyond the Company's ability to control or predict. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Those factors are described or referred to under the heading "Risk Factors" of Minefinders' Annual Information Form for the year ended December 31, 2008 and under the heading "Risks and Uncertainties" of Minefinders' Management's Discussion and Analysis for the year ended December 31, 2008 and quarter ended March 31, 2009, all of which are incorporated by reference herein and are available on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

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