Minefinders Corp

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Minefinders Inc (AMEX: MFN) has precious metal properties in Mexico and the United States, having valuable and expanding resources at its main project, Dolores, at the Sate of Chihuahua, Mexico.

An independent feasibility study made a positive recommendation of its Dolores property, which is in a developing stage as an open pit. Global capital expenditure is estimated to be approximately USD 132 million. Total cash cost of gold and gold-equivalent silver are estimated to average $238 through the 15.5 year mine life.

The study estimates total production of 1.45 million ounces of gold and 53.2 million ounces of silver (or a total of 2.3 million ozs of gold-equivalent). The project economics indicate a pay back of capital in 3.3 years, a net present value of $277 million and an internal rate of return of 24.3% using $475 and $7.50 as the price per ounce of gold and silver.

It has to be noted that new drilling results (not included in the feasibility study) have increased total project reserves to 2.45 million ozs of gold and 128 million ozs of silver (total of 4.48 million ozs gold-equivalent) and subsequent resource expansion drilling program is underway below the proposed pit.

Infrastructure development at the project has been underway since Q3 2005, construction has already started and production is expected to begin in 2007.

In addition to the resources already drilled, Minefinders Corp controls a strong portfolio of properties in Nevada, Arizona, and Mexico which have the potential to host new multi-million ounce discoveries over the next few years.

With 51.4 million shares fully diluted, Minefinders Corp has a potential stock price well above current prices on a medium/long term basis.