Protests Delay Dolores Start Up

Minefinders Corp. reported in late July 2008 that protests at its new Dolores mine in Chihuahua, Mexico, would delay the mine’s initial gold and silver pour from mid-July until later in the third quarter. On June 9, the company had reported that an illegal blockade established in May by a group of protestors would delay initial Dolores production until mid-July. During the blockade, Minefinders suspended mine operations out of concern for the safety of its employees and contractors.

The blockade was removed after intervention by Mexican authorities, and Minefinders briefly resumed mine operations in early June. However, the company was again forced to curtail operations because of threats of violence from protestors who remained on site. Mine operations fully resumed in early July after police arrived to ensure access and safety for the company’s employees and contractors. A small group of protestors remained on site in late July, but the Chihuahua state government was providing safe access to the mine. Minefinders was in continuing discussions with the state and federal governments and with the individuals responsible for the protest to come to a definitive long-term resolution.

Meanwhile, construction of all critical processing facilities at Dolores was complete, and final commissioning was progressing rapidly. The third tertiary crusher had been commissioned, and crushing capacity was nearing the planned 18,000 mt/d. Mining rates were at planned levels, and leaching was expected to begin within the next three weeks.

Dolores is a heap leach operation that is projected to produce a total of 1.8 million oz of gold and 64 million oz of silver over a mine life of 15.5 years.

“Provided there are no further disruptions, we expect to achieve first production of gold and silver this quarter and ramp up to commercial production in the fourth quarter,” Minefinders President and CEO Mark Bailey said.

As featured in Womp 08 Vol 7 - www.womp-int.com