Minefinders Reports La Bolsa Project Economics and Reserves

Minefinders Corporation today reported the results of small size earth sand crusher for salean independently prepared pre-feasibility study (the “study”) for its La Bolsa gold and silver project in Sonora, Mexico. The property is located 27 kilometres west-northwest of the city of Nogales, near the Sonora/Arizona border.

The study contemplates conventional open-pit mining methods at La Bolsa with low-cost heap-leach processing. Throughput is projected at 8,500 tonnes of ore per day with two-stage crushing and gold and silver recovery achieved through a carbon absorption recovery system.

The minable reserve, using prices of $825 per ounce of gold and $14 per ounce of silver contains 316,135 ounces of gold and 4.5 million ounces of silver. Assuming average recoveries of 72% for gold and 7% for silver, the total production from La Bolsa is estimated at 227,600 ounces of gold and 315,100 ounces of silver over a six year mine life.

The life of mine reserve strip ratio is estimated at 1.9 to 1 waste to ore and the operating strip ratio is estimated at 1.5 to 1 waste to ore, net of capitalized pre-stripping.

“The La Bolsa project has several favourable characteristics, including a low waste-to-ore ratio, amenability to heap-leach processing, and close proximity to infrastructure,” said Mark Bailey, President and Chief Executive Officer. “We consider the results of the pre-feasibility study a positive step toward advancing the La Bolsa gold deposit to a production decision. Over the next several months we will consider our options to realize value from La Bolsa.”

La Bolsa Mine Economics

Base case metal price assumptions of $850 per ounce of gold and $14 per ounce of silver were used in the economic analysis. The initial capital cost is $31.4 million, which includes $7.0 million of initial working capital with life of mine sustaining capital costs of $12.5 million or $2.3 million net of $10.2 million of capital recoveries.