Message #4 From:
NewsBot Date: November 28, 2006 06:30:00 PM
MGN News Mines Management Announces Final Approval to Move Forward with Underground Evaluation Program at the Montanore
SPOKANE, Wash.--(BUSINESS WIRE)--Mines Management, Inc. (AMEX:MGN) (TSX:MGT) is pleased to announce that
it has received final approval to move forward with underground
evaluation and drilling activities at the Montanore Silver-Copper
Project in northwestern Montana.
Final approval was received for a minor revision to the Hard Rock
Operating Permit to resume exploration and drilling activities at the
Libby Adit following review by the Montana State Department of
Environmental Quality (“DEQ”).
This authorization allows dewatering, adit rehabilitation, exploration,
and drilling activities for the Montanore Project. Activities at the
site may begin immediately.
Mines Management’s President and CEO, Mr.
Glenn M. Dobbs, commented, “We are very
pleased with the final approval as it allows us to move ahead with
another major step in developing a bankable feasibility study. We also
hope to further delineate the thicknesses of the mineralized zones,
which could have a positive impact to capital and operating costs for
the project.”
The initial approval by the DEQ of the first minor revision was
announced on July 25, 2006, which approval allowed the Company to
re-open and assess the condition of the Libby Adit. Having completed
this activity, Mr. Eric Klepfer, the Company’s
Vice President of Operations, stated, “It
appears that the first 600 feet of the adit is in good condition and
will need little rehabilitation work. Water quality samples collected
also show minimal issues for the dewatering phase. Bench scale water
treatability analysis has also been completed preparing for the next
important step of pilot scale test work.”
The underground evaluation program was initiated following the Company’s
May 2006, acquisition of the U.S. subsidiaries of Noranda Minerals of
Canada, which included the existing Operating Permit #00150 and MPDES
Permit #0030279. Both permits were originally issued in 1993, were kept
current, and remain in force. Exploration activities were originally
approved in April 1989, and the MPDES Permit was renewed as recently as
March, 2006.
Underground Evaluation Program
The objectives of the Underground Evaluation Program are to:
Expand the known higher grade zones of the deposit
Develop additional information about the deposit to support a bankable
feasibility study
Assess and define the mineralized zone that extends beyond the current
resource boundary
Provide additional data for geotechnical, hydrological and other
information required to complete a final, bankable feasibility study
The Underground Evaluation Program is designed to include the following
activities:
Dewatering and rehabilitation of the adit
Re-installation of services and infrastructure including electricity,
ventilation, pumps and pipeline, and associated surface facilities
Extension of the adit by an additional 3,000 feet
Development drifting of approximately 10,000 feet to establish drill
stations
Diamond core drilling of approximately 45,000 feet
The Libby Adit was constructed by Noranda between 1989 and 1991, but
remained uncompleted following cessation of activities and closure in
the mid-1990’s. The adit consists of a 6%
decline approximately 14,000 feet in length, 18 feet high and 18 feet
wide.
The evaluation project is expected to initially employ an additional
five local workers, increasing as the project advances. In recent years,
Lincoln County has suffered from one of the highest unemployment rates
in the state as a result of a declining local and regional natural
resource industry. If the mine were built at the Montanore, it would be
expected to employ 250-300 people.
The communities of Libby and Lincoln County have expressed their support
for the Montanore Project, including sending a delegation to the state’s
Capital to appeal to the Governor who expressed his support for the
Project in early 2005. On August 2, 2006, the State’s
Director of Economic Development expressed the Governor’s
continued support at a re-opening ceremony for the Libby Adit attended
by representatives from the U.S. Forest Service and approximately 100
local representatives and community leaders.
Mines Management, Inc. is a U.S.-based mineral company focused on the
exploration and acquisition of precious and base metals mineral
deposits. The company's primary focus is on the advancement of the
Montanore Silver-Copper Project located in northwestern Montana. The
Montanore Project is currently undergoing environmental assessment as
part of the development of an Environmental Impact Statement and the
NEPA process, which are necessary to gaining full permits to develop and
conduct commercial mining activities. An underground evaluation program
has been initiated as part of the development of a final, bankable
feasibility study.
This press release contains forward-looking statements regarding the
Company, within the meaning of Section 27A of the Securities Act and
Section 21E of the Exchange Act, including statements regarding the
anticipated timing, process and scope of the underground evaluation and
drilling activities and the anticipated completion of a bankable
feasibility study. These statements are based on assumptions that the
Company believes are reasonable but that are subject to uncertainties
and business risks. Actual results relating to any and all of these
subjects may differ materially from those presented. Factors that could
cause results to differ materially include economic and political events
affecting supply of and demand for silver and copper, fluctuations in
silver and copper prices, negative results of environmental studies,
problems or delays in or objections to the permitting process, the
proximity of the Project to the Cabinet Wilderness Area, failure or
delay of third parties to provide services, changes in the attitude of
state and local officials toward the Montanore Project and other factors
discussed in the Company's periodic filings with the Securities and
Exchange Commission, including its annual report on Form 10-K, as
amended, for the year ended December 31, 2005. Additional information is
available on the Company’s website at www.minesmanagement.com.
