TORONTO (miningweekly.com) – The recovery rates being achieved at Minefinders' Dolores mine, in Mexico, are “exceeding expectations”, the company reported on Tuesday.

Minefinders said it produced about 14 169 oz of gold and 282 429 oz of silver in the first three months of 2009, which was the first full quarter that the mine was in operation.

Output continues to ramp up towards commercial production levels, and rose to 6 426 oz of gold and 121 091 oz of silver in March, compared with 5 089 oz of gold and 111 010 oz of silver a month earlier.

Metal production is expected to continue to increase through the course of the second quarter as the volume of ore under leach and time under leach increases.

"The Dolores Mine remains on target to commence commercial operations in the second quarter with production of gold and silver increasing and two consecutive months of positive cash flow from pre-commercial operations," said president and CEO Mark Bailey.

Last month, the company was added to the S&P/TSX Composite index, the headline index and the principal broad market measure for the Toronto Stock Exchange.

The Dolores mine started production in November 2008, and is expected to produce more than 1,7-million ounces of gold and 64-million ounces of silver over a more than 15-year life-of-mine.

Earlier this year, Bailey told Mining Weekly Online that the company was looking to acquire either a producing mine or a late-stage project, with the aim of having a second producing operation under its belt.

The company would consider potential targets in Mexico, as well as throughout South America and the US, and may also look at merging with a 'peer' company, he said at the time.

Minefinders shares rose 2,27% on Tuesday, to C$9,00 apiece by 15:38 in Toronto.