Minefinders Corporation Ltd.

Minefinders Corporation Ltd.

November 01, 2006 08:30 ET

Minefinders Resumes Drilling on Northern Sonora Silver Projects-Program Targets 2.5 km Extension of High-Grade Mineralization

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 1, 2006) - Minefinders Corporation Ltd. (the "Company") (TSX:MFL)(AMEX:MFN) announces that it has completed the first four holes of a 5,000 metre reverse-circulation drilling program on its 100% owned Planchas de Plata and Real Viejo silver projects, in northern Sonora State, Mexico.

Following the discovery of ore-grade silver mineralization at these projects in 2004 and 2005, the Company undertook expanded geophysical and geochemical surveys, supported by detailed geological sampling and mapping, in preparation for the current drilling program. The new program focuses principally on Planchas de Plata and is designed to extend known mineralization along geological and geophysical trends, and to test newly-identified zones of high-grade silver mineralization.

The Planchas de Plata and Real Viejo projects are located within 10 kilometres of each other, in easily-accessible terrain. All environmental clearances necessary to complete the planned 2006 drill program have been secured. Assay results from the four holes now completed at Planchas de Plata will be reported when they become available.

Planchas de Plata

Recent Exploration

A large-scale geophysical program completed at Planchas de Plata by Zonge Engineering in July 2006, defined large zones of anomalous IP (induced polarization) highs, as shown in the accompanying Figure 1. Geophysical anomalies extending to surface were observed to coincide frequently with mineralization, as evidenced by historical mine workings, geochemistry along sample lines, and previous drill results.

Drilling at Planchas de Plata in 2005 defined mineralization in two shallow, subparallel flat-lying zones that extend a minimum of 80 metres in width, 300 metres in length, and 15 to 20 metres in thickness. At the time, these zones were noted to remain open to the south and east (see news release dated February 8, 2006 or visit Company website to view a cross-section). The recently-completed IP survey extended anomalies from the area of previously-drilled mineralization to the southeast, along a strike length of more than 2.5 kilometres.

High-grade silver mineralization, in multiple structures coincident with the geophysical anomaly, was discovered by geological mapping and rock chip sampling along the southeastern extent of this geophysical survey. The geological setting and mineralization at this location are similar to that seen at the original, northern discovery site. The following table lists significant results from 11 of the 20 rock chip samples taken from this prospective area (see Figure 1 for location of samples):

overlimit Sample Sample
fire width Silver width
Silver assay (ii) (ounces (ii)
Sample # (ppm(i)) (ppm(i)) (metres) per ton) (feet)
06-243 60.6 1.5 m 1.77 4.9 ft
06-244 greater than 100 775 Dump grab 22.63 Dump grab
06-246 greater than 100 209 1.0 m 6.10 3.3 ft
06-247 greater than 100 195 2.0 m 5.69 6.6 ft
06-248 greater than 100 257 2.0 m 7.50 6.6 ft
06-249 greater than 100 387 2.0 m 11.30 6.6 ft
06-255 41.1 2.5 m 1.20 8.2 ft
06-256 greater than 100 215 1.5 m 6.28 4.9 ft
06-257 47.1 5.0 m 1.38 16.4 ft
06-260 57.5 1.0 m 1.68 3.3 ft
06-262 82.2 1.0 m 2.40 3.3 ft
(i) ppm equals parts per million
(ii) true widths of individual structures have not been determined,
but sample widths are believed to be representative

All samples contained anomalous copper, zinc and lead, in addition to this significant silver mineralization.

The IP/Resistivity survey completed in July covered more than 10 square kilometers of prospective ground, generating data from 17.4 line kilometres at average spacings of 500 metres. Preliminary results from the survey were reported by the Company on July 11, 2006, and a depiction of the geophysical results in cross section can be found on the website at www.minefinders.com.

Previous Exploration

The 2005 drill program at Planchas de Plata comprised 58 core holes, totaling 8,686 metres (28,497 feet). It successfully defined several high-grade silver zones (cross-section and plan map can be viewed on www.minefinders.com) that are open to expansion. The upper high-grade zone occurs 10 to 50 metres above a second, deeper, high-grade zone discovered by the drill program and both zones trend shallowly below surface along strike.

Significant drill results from the 2005 drill program included near surface 'upper zone' intercepts of 7.34 metres (24.1 feet) grading 858.2 grams per tonne ("g/t") silver (25.03 ounces per tonne ("opt")) and 'lower zone' intercepts that included 28.95 metres (95 feet), assaying 194.4 g/t silver (5.67 opt) and 15.0 metres at 364.1 gpt silver (10.6 opt silver), as reported by the Company on February 8, 2006.

The geophysical, geochemical and geological results of the recent program provide a coherent picture of the concealed targets and will be used in an integrated manner to further test the district. The Company has contracted up to 5,000 metres of reverse-circulation drilling to establish validity of the geophysical targets, to be followed by core drilling as required for resource expansion and delineation drilling.

Real Viejo

Following drilling at Planchas de Plata, up to five reverse-circulation holes will be drilled at the Company's Real Viejo project, located 10 kilometres to the northwest. These holes will offset and attempt to expand additional mineralization discovered in late 2005, as reported by the Company on February 8, 2006. Intercepts reported at that time included 26.7 metres averaging 71.8 g/t silver (2.09 opt over 87.6 feet) at a depth of 14.3 metres (47 feet) and 698 g/t silver over 2.15 metres (20.36 opt over 7.1 feet).

Quality Control and Quality Assurance

Surface samples reported in this release are all continuous chip-channel samples taken across the strike of mineralization unless otherwise stated. All surface and previous drill samples, weighed between 2 kilograms ("kg") and 10 kg each, and were collected and transported from the Planchas de Plata site for assay by ALS-Chemex Labs of Vancouver, B.C. Standards are inserted into the sample stream for quality control. All analyses reported are done using ICP and multi-acid digestion with AA analyses or fire assay analyses for silver values over 100 ppm. Duplicates of previous drill samples were collected and are maintained at the project site for check assay and metallurgical testing.

Mark Bailey MSc., P.Geo. is the "qualified person" within the meaning of Canadian NI 43-101, with overall responsibility for the Company's projects, and is responsible for the contents of this news release.

About Minefinders

Minefinders Corporation Ltd. is a successful mineral exploration company with several projects in Mexico and the United States. The Company is on schedule and fully funded, with US$150 million in operating capital, to complete development of the 18,000 tonnes per day Dolores gold and silver mine in Chihuahua, Mexico, with production scheduled to commence in the third quarter of 2007. Following construction of the Dolores mine, the Company expects to continue to hold more than US$40 million in working capital with which to fund ongoing exploration at Dolores and its northern Sonora projects and to pursue other opportunities.


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 timing and size of the Company's planned exploration programs on its northern Sonora projects, the timing of the commencement of production from its Dolores gold and silver mine, and the adequacy of the Company's operating capital to fund the completion of the Dolores mine and ongoing exploration, 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.

To view Figure 1 please click on the following link: http://www.ccnmatthews.com/docs/1101mfl_map.pdf

Contact Information

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