The Conversation (0)
Mines Management, Inc. (TSX:MGT,NYSE:MGN) reported financial and operating results for the fiscal year ended December 31st, 2012, and subsequent progress on the permitting process for the Montanore Project. Highlights include the advancement of biological assessments for Montanore, development of the Final Environmental Impact Statement, and an Exploration Earn-In Agreement with Estrella Gold Corporation. As of December 31, 2012, cash and investment position remains strong at $11.8 million.
- Montanore Project biological assessments (“BA”) for aquatics and terrestrial species were advanced during the year, leading to the initiation of the biological consultation between the U.S. Forest Service (“USFS”) and the U.S. Fish and Wildlife Service (“USFWS”) in March 2013.
- Development of the Final Environmental Impact Statement (“EIS”) is underway. During the year, the USFS and Montana Department of Environmental Quality incorporated into the Final EIS responses to comments on the Supplemental Draft EIS, completed in September 2011.
- The Company continued an active communication program by meeting with federal and state agencies, members of Congress, Montana legislators, local Lincoln County commissioners and City of Libby officials, business leaders and community members in an effort to keep them informed of the Project’s status.
- The Company executed an Exploration Earn-In Agreement with Estrella Gold Corporation, for an option to acquire 75% of the La Estrella gold and silver exploration property located in central Peru.
- During the year, the Company exceeded work commitments under the Earn-In Agreement on the La Estrella project by completing 2,700 meters of diamond core drilling and conducting a 3D IP/Resistivity survey which included 21 lines consisting of a total of 38 line kilometers.
- Results of the exploration were encouraging and the Company decided to extend exploration activities into the second year.
- The Company continues to control expenditures and conserve cash pending the completion of Montanore permitting.
- Cash and investment position remains strong at $11.8 million, as of December 31, 2012.
Mines Management Chairman and CEO Glenn Dobbs said:
There was significant progress made on the permitting process for the Montanore in 2012, setting the stage for advancement through the final phase toward completion. We are pleased that the Biological Consultation has commenced, marking a significant milestone that leaves the Final Environmental Impact Statement, concluding with the Record of Decision, the only remaining major activity following the Biological Opinion. In addition, an important new front for potentially adding value came from exploration on the Estrella gold-silver project in Peru. Data gathered from surface exploration and drilling activities has significantly expanded the known zone of gold and silver mineralization, and identified additional new targets, justifying extension of our exploration agreement into the second year.
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INN Video: Mines Management CEO Glenn Dobbs on Mining in Montana