Minefinders Reports Increase In Gold And Silver Production
VANCOUVER - Mark Bailey, President and Chief Executive Officer of Minefinders commented, "We are pleased with our results for the second quarter and the year to date. Our initiatives to improve operations at Dolores are paying off and we are also benefiting from higher metal prices. We are currently on track to achieve our guidance for 2011."
Gold and silver production increased in the second quarter and six-month period of 2011 primarily due to higher average gold and silver grades stacked to the leach pad in previous quarters. Gold and silver grades of ore stacked to the leach pad averaged 0.49 grams per tonne and 40.85 grams per tonne, respectively. This represents an increase over the prior year mainly due to sequencing in the open pit and mining practice improvements which have decreased dilution.
At June 30, 2011 the Company had $221.2 million in cash, cash equivalents and short term investments, an increase from $166.9 million at December 31, 2010. Net working capital at June 30, 2011 was $214.9 million, an increase from $167.4 million at December 31, 2010. In addition, the Company has an undrawn $50 million revolving credit facility.
Minefinders maintains its production guidance for 2011 of 65,000 to 70,000 ounces of gold and 3.3 million to 3.5 million ounces of silver at a cash operating cost between $450 and $500 per gold equivalent ounce sold assuming a 48 to one silver to gold ratio.
The Company initially budgeted to incur capital expenditures of $39.5 million in 2011. This estimate has been revised to $45.4 million to account for the purchase of three 100 tonne haul trucks and an associated mining excavator.
The Company is continuing to assess the addition of a milling operation at Dolores and the development of an underground resource at Dolores. At La Bolsa, also in Mexico, permitting is underway and an engineering firm has been contracted to provide detailed engineering to advance the project towards a construction decision. Exploration drilling at La Virginia continues. The company's address is 2288-1177 W. Hastings St., Vancouver, BC V6E 2K3, (604) 687-6263, fax: (604) 687-6267.