029 Group SE

Earnings Release • Jun 28, 2006

News Details

Corporate | 28 June 2006 12:06

Minefinders Corporation Ltd.: Resource Expansion Drilling at Dolores Cuts 104 Metres Averaging 2.92 gpt Gold and 52.9 gpt Silver

Corporate news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Minefinders Corporation Ltd.: Resource Expansion Drilling at Dolores Cuts 104 Metres Averaging 2.92 gpt Gold and 52.9 gpt Silver Vancouver, British Columbia, Canada. June 27, 2006. Minefinders Corporation Ltd. (the ‘Company’) (Frankfurt WKN: 859435; TSX: MFL; AMEX: MFN) reports that exploration drilling at its development-stage Dolores gold/silver project in Chihuahua, Mexico continues to encounter wide, bulk-minable intercepts surrounding narrower, high-grade feeder zones, beyond the limits of the current feasibility-designed open-pit. The drilling is part of an ongoing, comprehensive resource expansion program at Dolores. The latest results are from holes marginal to the planned Dolores open-pit mine, designed to test the potential expansion of the pit and future underground minable mineralization. Drill holes D06-436, D06-437, D06-443, and D06-449 are typical of mineralization encountered within the mineralized south breccia pipe with multiple intercepts occurring over a wide area. Significant intersections beyond the current mine plan, include: – D06-443 – 104 metres grading 2.92 grams per tonne (‘gpt’) gold and 52.9 gpt silver or 3.81 gpt gold equivalent(i) (‘Aueq’), including 25 metres grading 6.42 gpt gold and 117.5 gpt silver. This hole also cut 1 metre assaying 17.69 gpt gold and 2095.5 gpt silver. Intercepts occurring between 352 to 530 metres down hole in D06-443 are located 20 to 40 metres west of the currently designed pit wall with the deeper intercepts occurring from 34 metres to 110 metres below the planned pit bottom. – D06-449 – 81 metres grading 3.12 gpt gold and 39.6 gpt silver, with 6 metres assaying 19.62 gpt gold and 294.1 gpt silver extending high-grade mineralization from 50 to 120 metres below the planned pit bottom. In addition, drill hole D06-430, previously reported on January 23, 2006, extended high-grade south breccia pipe mineralization (16 metres averaging 29.8 g/t gold) 60 metres below, and 25 metres south, of the present pit design. Also included among the new results, drill holes D06-435, D06-437, D06-441 and D06-445 are north of the Central Dome and 500 to 1,000 metres north of the south breccia pipe. Drill holes D06-438, 439, and 440 were engineering holes for the reservoir site. Holes D06-446, 447 and 448 were condemnation holes in the leach pad area. Table 1 – Recent Significant Drill Results – 2006 Dolores Exploration Program ——————————————————————— Intercept Width Aueq extends DDH Section Intercept (met- Width Au Ag (i) mineral- No. (metres) (metres) res) feet (g/t) (g/t) (g/t) ization: ——————————————————————— D06- 2775 84.0-98.0 14.0 45.9 .651 41.4 1.34 430 ——————————————————————— 282.0-432.0 150.0 492.2 3.62 8.9 3.76 25 m south of pit ——————————————————————— Inc. 357.0-373.0 16.0 52.5 29.8 14.7 30.10 60m below pit ——————————————————————— ——————————————————————— D06- 1875 79.0-179.0 100.0 328.1 1.07 17.6 1.36 434 ——————————————————————— Inc. 145.0-151.0 6.0 19.7 3.32 22.3 3.69 ——————————————————————— and 159.0-160.5 1.5 4.92 4.46 103.0 6.17 ——————————————————————— and 169.0-173.0 4.0 13.1 6.93 53.5 7.82 ——————————————————————— ——————————————————————— D06- 1875 38.0-136.0 98.0 321.5 .80 27.4 1.26 Infill 435 hole ——————————————————————— Inc. 66.0-89.0 23.0 75.5 1.56 47.5 2.35 East edge of pit ——————————————————————— 173.0-215.0 42.0 137.8 .67 34.3 1.25 ——————————————————————— Inc. 199.0-205.0 6.0 19.7 2.17 176.9 5.11 ——————————————————————— ——————————————————————— D06- 2650 137.0-172.0 35.0 112.4 .46 37.3 1.08 436 ——————————————————————— Inc. 143.0-149.0 6.0 19.7 1.60 100.7 3.28 ——————————————————————— 288.0-411.0 123.0 403.6 1.03 23.0 1.41 Breccia pipe ——————————————————————— Inc. 338.0-340.0 2.0 6.6 5.73 28.0 6.19 ——————————————————————— Inc. 363.0-408.0 45.0 147.6 1.86 22.0 2.22 Below pit ——————————————————————— with 382.0-389.0 7.0 23.0 3.90 22.0 4.27 ——————————————————————— with 401.0-407.0 6.0 19.7 3.52 30.9 4.03 ——————————————————————— ——————————————————————— D06- 1825 25.0-76.0 51.0 167.3 .79 40.3 1.46 Infill 437 hole ——————————————————————— 94.0-96.0 2.0 6.6 3.98 127.0 6.09 ——————————————————————— 122.0-202.0 80.0 262.5 1.01 15.7 1.27 East edge of pit & outside of pit ——————————————————————— Inc. 172.0-196.0 24.0 78.8 2.10 34.3 2.67 ——————————————————————— with 174.0-176.0 2.0 6.6 8.63 6.5 8.74 ——————————————————————— ——————————————————————— D06- 2100 102.0-106.0 4.0 13.1 .59 56.5 1.53 441 ——————————————————————— 126.0-180.0 54.0 177.2 .56 35.1 1.14 East edge of pit ——————————————————————— Inc. 154.0-164.0 10.0 32.8 1.15 80.6 2.49 ——————————————————————— Inc. 176.0-180.0 4.0 13.1 1.63 103.5 3.35 ——————————————————————— ——————————————————————— D06- 2600 250.0-275.0 25.0 82.0 1.28 80.6 2.63 West 443 structure ——————————————————————— Inc. 268.0-275.0 7.0 22.97 3.73 111.4 5.59 ——————————————————————— 352.0-353.0 1.0 3.3 17.69 2095.5 52.62 Outside pit wall ——————————————————————— 388.0-390.0 2.0 6.6 7.27 1104.5 25.68 ——————————————————————— 426.0-530.0 104.0 341.2 2.92 52.9 3.81 Below pit ——————————————————————— Inc. 460.0-485.0 25.0 82.0 6.42 117.5 8.38 ——————————————————————— Inc. 501.0-522.0 21.0 68.9 3.70 29.6 4.20 ——————————————————————— with 514.0-519.0 5.0 16.4 6.98 31.4 7.50 ——————————————————————— ——————————————————————— D06- 2200 79.0-81.0 2.0 6.6 0.06 650.0 10.9 East edge 445 of pit ——————————————————————— 83.0-85.0 2.0 6.6 0.31 287.0 5.09 ——————————————————————— 91.0-99.0 8.0 26.2 0.47 138.0 2.77 ——————————————————————— 105.0-111.0 6.0 19.7 0.47 48.4 1.26 ——————————————————————— 138.0-153.0 15.0 49.2 0.22 47.9 1.01 ——————————————————————— ——————————————————————— D06- 2600 242.0-279.0 37.0 121.4 0.37 52.1 1.24 449 ——————————————————————— Inc. 259.0-264.0 5.0 16.4 0.92 144.2 3.32 ——————————————————————— 277.0-279.0 2.0 6.6 2.81 105.5 4.56 ——————————————————————— 446.0-527.0 81.0 265.8 3.12 39.6 3.78 50-120 metres below pit bottom ——————————————————————— Inc. 446.0-452.0 6.0 19.7 19.62 294.1 24.52 ——————————————————————— and 483.0-492.0 9.0 29.5 6.24 43.6 6.97 ——————————————————————— and 496.0-498.0 2.0 6.6 5.38 9.8 5.54 ——————————————————————— and 502.0-504.0 2.0 6.6 7.49 15.6 7.75 ——————————————————————— (i) Gold equivalent grade based on 60:1, silver:gold ratio, without reference to recovery. Drill intercepts are core intervals and true thickness has not been determined. Exploration drilling continues with three drill rigs currently on the property. Additional deep drilling is targeted to extend high-grade mineralization 100 to 150 meters beyond the deepest hole completed to date. Assay results are pending for holes D06-450 through D06-460. In total, 70 additional core and reverse-circulation drill holes have now been completed on the property over the past year, for condemnation, engineering, and water well test work. Dolores Resources and Reserves The Company is presently assessing the impact on the Dolores reserves of the increase in the resource base that was reported in its news release dated April 25, 2006. The impact on the Dolores reserve base of the results of the current drilling will be assessed as engineering studies progress. As shown in Table 2, at present, the total measured and indicated resources at Dolores (which include the proven and probable reserves currently being developed at the Dolores mine, shown in Table 3) are estimated at 3.06 million ounces of gold and 149 million ounces of silver, contained in 118.4 million tonnes (as reported on April 25, 2006). Table 2 – Dolores Measured, Indicated Resources ——————————————————————– Gold Equivalent Tonnes Gold Silver Gold Silver (ii) Category (000s) (g/t) (g/t) (ounces) (ounces) (ounces) ——————————————————————– Measured 61,660 0.86 42.1 1,702,000 83,361,000 3,025,200 ——————————————————————– Indicated 56,750 0.75 35.9 1,360,000 65,479,000 2,399,300 ——————————————————————– M&I Total 118,410 0.80 39.1 3,062,000 148,840,000 5,425,500 ——————————————————————– (ii) Gold Equivalent ounces calculated using 63:1, silver to gold, ratio ($475 gold and $7.50 silver price). An additional 667,000 ounces of gold and 27.7 million ounces of silver, in 33.8 million tonnes (at an average grade of .61 gpt gold and 25.5 gpt silver), are classified as inferred resources. Table 3 – Dolores Proven and Probable Reserves ——————————————————————– Gold Equivalent Tonnes Gold Silver Gold Silver (ii) Category (000s) (g/t) (g/t) (ounces) (ounces) (ounces) ——————————————————————– Proven 43,678 0.88 45.44 1,235,738 63,809,015 2,248,580 ——————————————————————– Probable 28,795 0.78 42.96 722,092 39,770,617 1,353,372 ——————————————————————– Proven & Probable 72,473 0.839 44.46 1,957,830 103,579,632 3,601,952 ——————————————————————– As reported February 27, 2006. Some numbers may not match due to rounding. (ii) Gold Equivalent ounces based on 63:1, silver to gold, ratio. Dolores Mine Development Update Development of the Dolores mine continues with construction started on the man camp and temporary office complex. Earth works are expected to start shortly in the leach pad and crusher areas with the finalization of construction contracts. Down payments have been made on all critical mine components, including crushers and mining equipment, to maintain delivery dates. Several pieces of ancillary equipment have been purchased and will be imported as soon as storage area is completed. Further updates on mine construction will be provided, as milestones are met. Quality Control and Assurance All analyses reported are fire assay analyses for gold and multi-acid digestion with AA analyses or fire assay analyses for silver, and completed by either Chemex Labs of Vancouver, Canada, or Inspectorate Labs of Sparks, Nevada. Samples from these intervals were comprised of HQ or NQ core all representatively split prior to analysis and transported by the labs to sample preparatory facilities in Hermosillo, Mexico (Chemex) or Durango, Mexico (Inspectorate). Mark Bailey, MSc., P.Geo. is the ‘qualified person’ with overall responsibility for the Dolores Project and is responsible for the contents of this news release. MINEFINDERS CORPORATION LTD. 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 size, and potential growth in size, of the Company’s mineral reserves and resources, the economic feasibility of, and commencement of mine construction and mining operations at, the Company’s Dolores Project and the timing of the further exploration and development of the Company’s mineral projects, 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. Cautionary Note to U.S. Investors: The SEC permits mining companies to disclose only those mineral deposits that can be extracted or produced economically in their filings with the SEC. This news release uses the term ‘inferred resource’ that the SEC guidelines prohibit from inclusion in filings with the SEC. For further information, please contact: Minefinders Corporation Ltd. Mark H. Bailey President and Chief Executive Officer Suite 2288-1177 West Hastings St. Vancouver, B.C. V6E 2K3, Canada Tel. +1 (604) 687-6263 Tel. +1 (866) 687-6263 Fax +1 (604) 687-6267 www.minefinders.com AXINO AG Silberburgstrasse 112 D-70176 Stuttgart Tel. +49 (711) 25 35 92-30 Fax +49 (711) 25 35 92-33 info@axino.de www.axino.de (c)DGAP 28.06.2006 ————————————————————————— Language: English Issuer: Minefinders Corporation Ltd. 2288-1177 W Hastings St V6E 2K3 Vancouver, BC Kanada Phone: +1 (604) 687-6263 Fax: +1 (604) 687-6267 E-mail: info@minefinders.com WWW: www.minefinders.com ISIN: CA6029001022 WKN: 859435 Indices: Listed: Freiverkehr in Berlin-Bremen, München; Open Market in Frankfurt; Foreign Exchange(s) Toronto End of News DGAP News-Service —————————————————————————