We keep saying it so we hope you’re listening – gold, gold and more gold.

Minefinders Corporation, Ltd. (MFN) engages in the mining, exploration, and development of precious and base metal properties primarily in Mexico and the United States. Its principal property includes the Dolores property, a gold and silver open pit mine, located in the Sierra Madre Occidental Range of northern Mexico, approximately 250 kilometers west of the city of Chihuahua

CEO Mark Bailey sees his company emerging as a “leading low-cost, mid-tier gold and silver producer” as the commercial production is achieved during the first quarter of 2009. With a projected cash cost of $297 per ounce of gold, Dolores could place Minefinders in the company of low-cost producers such as larger competitors Yamana Gold (NYSE: AUY) and Agnico-Eagle (NYSE: AEM).

This final hurdle could not have been cleared at a better time. With the credit crunch threatening to squeeze developing juniors right out of existence, the resulting likelihood that Minefinders will switch from financing to cash flow to fund its operations during the coming year is a welcome development.

With gold topping $1,000 an ounce, and the Dolores mine containing an estimated production of 1.7 million ounces of gold, that’s roughly 1.2 Billion in profits coming their way from Dolores alone.

There is a lot of value right now in MFN shares – the market cap is only $400M. Share price would need to triple just to reflect the potential earnings in the Dolores Mine.

MFN Chart

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