TORONTO (miningweekly.com) – Vancouver-based Minefinders Corp, which started production last year at its Dolores gold mine, in Mexico, wants to have a second operation up-and-running “as quickly as we can”, president and CEO Mark Bailey said on Thursday.

The company is looking to acquire either a producing mine or a late-stage project, which it could bring into production within about 12 to 18 months, he told Mining Weekly Online on the sidelines of a Toronto event hosted by metals consultancy GFMS.

“The idea is to give us two mines, as quickly as we can, and get us up to a mid-sized, half-a-million-ounces producer, which would be about the size that we want to get to,” Bailey said.

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

The firm is not targeting a specific size of project or operation, but will rather focus on economics.

“If it's a small operating mine that we see upside in, that we can expand... then we might go with that, with the intent of growing it into a bigger operation.

“Otherwise, we would be looking at something in the range of 100 000 oz-plus,” Bailey said.

The Dolores mine, which was hit by delays last year owing to operational setbacks and blockades of the site, produced its first gold and silver dore in November.

The operational issues have been dealt with and the groups which were behind the blockades have “moved on” and are no longer targeting the company or its property, Bailey said.

The operation has since shipped about two tons of dore, and is expected to achieve commercial production in late March or early April.

The company is also planning to conduct a feasibility study into a 1 500-t/d to 2 000-t/d mill at Dolores, to process higher-grade ore from the openpit, with a view to improving recoveries.

The Dolores mine contains proven and probable reserves of 2,44-million ounces of gold and 126,6-million ounces of silver in the pit.

The life-of-mine cash costs are estimated at around $300/oz, although they are currently closer to $400/oz, as the mine progresses through the commissioning phase.

Minefinders shares rose 7,8% on Thursday, to C$5,83 a share by 15:59 in Toronto.