Mines Management Inc./ MGN (AMEX)

    SPOKANE, WASH., Nov 15, 2007 (Canada NewsWire via COMTEX) -- Mines Management, Inc. (Amex:MGN) (TSX:MGT) (the "Company") is pleased to provide an update on activities occurring during the third quarter of 2007.


    Advancing the Montanore Silver-Copper Project continues to be the Company's main focus. In addition to its planned advanced exploration and delineation drilling program, the Company is continuing its permitting efforts with federal and state agencies and its optimization review of the Project. During the third quarter of 2007, construction and installation of a water treatment plant was the main activity at the Montanore Project site, with testing and commissioning of the plant scheduled for November 2007.


    Overview


    In the third quarter of 2007, the Company:


    -- Maintained a strong cash position, with $26.3 million at September 30, 2007.


    -- Continued preparations for the advanced exploration and delineation drilling program by:


    <<
    -- commencing installation and construction of the water
    treatment plant and building, which was completed as of
    October 31, 2007,


    -- hiring additional staff at the Project site to support
    initiation of underground activities at the Libby adit,
    and


    -- receiving shipments of underground mining and surface
    equipment.
    >>



    -- Advanced the permitting process by working closely with state and federal agencies to provide technical and other information in support of the preparation of the draft environmental impact statement.


    During the third quarter, our progress at the Project site included the installation of a water treatment plant and construction of the ventilation support structure in preparation for the commencement of rehabilitation activities in the Libby adit. The Company expects to start the dewatering and rehabilitation of the Libby adit late in the fourth quarter of 2007, once the final approval of the Environmental Assessment for road use is received. Following dewatering and rehabilitation, the Company expects to advance the adit approximately 3,000 feet toward the middle of the mineral deposit.


    The Company plans an additional 10,000 feet of development drifting to provide drill access to different portions of the deposit, construction of drill stations, and diamond core drilling of approximately 50 holes totaling approximately 45,000 feet. The objectives of the advanced exploration and delineation drilling program are to:


    -- Expand the known higher grade intercepts of the Montanore deposit;


    -- Develop additional information about the deposit;


    -- Further assess and define the mineralized zone; and


    -- Provide additional geotechnical, hydrological, and other data.


    The Company expects that results of the drilling program, if successful, would provide data to support the completion of a bankable feasibility study, allowing the Company to convert a portion of its mineralized material/resource estimates into reserves.


    The net cash expenditures for the quarter ending September 30, 2007, were $3.4 million for the purchase of equipment and construction of the water treatment plant and other infrastructure and $0.6 million for operating activities. The Company believes that it has sufficient working capital for rehabilitation of the Libby adit and commencement of the delineation drilling program.


    Advanced Exploration and Delineation Drilling Program


    During the third quarter of 2007, the Company continued preparations for the exploration and delineation drilling activities at the Libby adit site. The water treatment plant components were delivered during the quarter and installation of the plant was completed October 31, 2007, with testing and startup activities beginning on November 1, 2007. Other activities included the delivery of major mine equipment, pump stations, power load centers and other key equipment necessary for the delineation drilling program. Installation of the ventilation duct work was completed for the first several hundred feet of the adit.


    Technical staff and site personnel numbers remained relatively constant with an electrician and general laborer added to the site staffing. The Company expects to begin rehabilitation activities at the Libby adit once the approval of the Environmental Assessment (EA) is received from the U.S. Forest Service (USFS) and dewatering commences. The EA is scheduled to be approved in early December 2007.


    Major equipment for the rehabilitation stage of the program is either on site or scheduled for delivery in the fourth quarter of 2007, or early in the first quarter of 2008. Costs for the major equipment are within budget, and it is still anticipated that expenditures through the end of 2007 will be approximately $6.5 million for equipment and activities related to the preparation for commencement of the drilling program.


    During the third quarter, the Company also advanced the geologic model for the project, and it is expected that the updated model will be completed in the fourth quarter. The Libby site engineering and geologic staff continues to focus their efforts on optimization of the current proposed mine plan. During the fourth quarter of 2007, the Company expects to initiate discussions and solicit proposals from outside engineering firms on the task of updating the current cost study to a bankable feasibility study by incorporating the results of the delineation drilling program.


    Permitting and Environmental


    The Company continued work with the U.S. Forest Service and the Montana Department of Environmental Quality in the third quarter of 2007 on the final stages of the preliminary draft Environmental Impact Statement (EIS). It is anticipated that the preliminary draft will be issued to the agencies for internal review early in November. The preliminary draft EIS will be reviewed for content and then jointly edited to produce the draft EIS which will be submitted for public comment. The agencies' schedule indicates the completion of the draft EIS by April 2008.


    The Company also continues to work with the State of Montana to develop the 404 permit application, which will establish allowable discharge levels, and collect baseline environmental information to support our permit applications. Formal permit applications will be submitted concurrently with the submission of the draft EIS for public comment.


    Financial and Operating Results


    Mines Management is an exploration stage company with a large silver-copper project, the Montanore Project, located in northwestern Montana. The Company continues to expense all of its expenditures and has no revenues from mining operations. Financial results of operations include primarily interest income, general and administrative expenses, permitting, project advancement and engineering expenses.


    Quarter Ended September 30, 2007


    The Company reported a net loss for the quarter ended September 30, 2007 of $1.7 million, or $0.09 per share, compared to a net loss of $1.4 million, or $0.11 per share, for the quarter ended September 30, 2006. The $0.3 million increase in net loss was attributed to a $0.3 million increase in the third quarter of 2007 in legal, accounting, financing, and administrative expenses related to increased investor relations activities in support of the Montanore Project, and a $0.2 million increase in employee compensation as a result of salary increases and the addition of thirteen new employees, offset by a $0.3 million increase in interest income received in the third quarter of 2007 compared to the third quarter of 2006 from earnings on the $32.1 million net proceeds of the Company's public offering in April 2007. Overall Project spending also increased in the third quarter of 2007 compared to the third quarter of 2006 as a result of increased permitting activities and site preparation for the delineation drilling program.


    Nine Months Ended September 30, 2007


    The Company reported a net loss for the nine months ended September 30, 2007 of $5.1 million or $0.30 per share compared to a net loss of $4.0 million, or $0.31 per share, for the nine months ended September 30, 2006. The $1.1 million increase in net loss for the nine months ended September 30, 2007, compared to the nine months ended September 30, 2006, is largely attributable to a $0.3 million increase in legal, accounting and administrative expenses related to the increased cost of implementing additional Sarbanes-Oxley internal control procedures and investor relations activities related to the public offering completed in April 2007, increased compensation expense of $0.5 million, a net $0.3 million increase in all other activities and a $0.3 million increase in stock option expense due to new hires and repricing of options in accordance with Company policy. These increased expenditures of $1.6 million were offset by an increase of $0.5 million in interest income for the first nine months of 2007 from earnings on the proceeds of the Company's public offering in April 2007.


    Liquidity


    During the quarter ended September 30, 2007, the net cash used for operating activities was $0.5 million, which consisted largely of permitting and administrative expenses associated with increased activities at the Montanore Project. The net cash used in investing activities during the quarter was $3.4 million for procurement of equipment and construction in progress. For the nine months ended September 30, 2007, the net cash from financing activities was $31.6 million, consisting of proceeds from the public offering completed in April 2007. The net cash on hand at the end of the first nine months of 2007 was $26.3 million, compared to $2.1 million at end of the first nine months of 2006.


    The Company anticipates spending approximately $6.5 million from cash and investments on hand during the final quarter of 2007 for activities and equipment purchases related to the advanced exploration and delineation drilling program and repermitting efforts at the Montanore Project. The Company believes that it has sufficient working capital for rehabilitation of the Libby adit and commencement of the delineation drilling program which will take place over the next two years. In order to complete the planned program, the Company expects that it will require approximately $10 million in additional financing.


    Subsequent to the end of the third quarter, the Company completed a $10 million private placement of its common stock on November 5, 2007. The proceeds of that transaction are expected to be used for working capital and general corporate purposes, including advancement of the Montanore Project and potential acquisitions.

    Tom Szabo vom 21.11.:


    My Monday visit to the San Francisco Hard Assets Conference was rather uneventful. There were much fewer silver companies present than in the past but even so I only had time to stop and chat at a few booths. My most insightful discussion was with Doug Dobbs of Mines Management, who filled in a few missing details in my mind about his company's future prospects. I'll leave the details for the new service, but in essence I am becoming much more confident that Mines Management could be a solid candidate for price appreciation as it moves toward feasibility study and permitting of its world-class Montanore deposit. This is going to occur over roughly the next 24 months assuming no major delays or environmental roadblocks, and it isn't very difficult to build a case that the stock should be trading around the $10 level or even higher toward the end of that period. This is not a target per se but simply a back of the napkin valuation estimate. Moreover, the best part is that my $10 per share calculation assumes a silver price of $10/oz. and copper of $1.50/lb (I am not a copper bull and believe base metals in general will trend toward marginal cost of production in the next few years but on the other hand I do think silver will be trading higher than $10 in 2009). With the share price around $4 today, I view Mines Management as an excellent buy for medium-term holding periods of between 1-3 years.

    Da in verschiedenen Boards mal wieder totaler blödsinn bzgl. Einstieg von Silver Wheaton gepostet wird, hier die klare Aussage von Douglas:



    1. The Montanore deposit remains open for expansion in three directions. We will be testing one of those directions in the upcoming drill program. The potential for growth in resources in the upcoming drilling program stems from identifying thicker zones of mineralization that Noranda previously did not intend to mine, and which were not included in the resource calculation. We do not yet know the potential for expansion at this time.


    2. Mines Management has no obligation to sell its future silver production to Silver Wheaton or any other company. Silver Wheaton only received a "Right of First Refusal" giving them a first look at any selling arrangements we may consider. Mines Management still retains all ownership and control of its resource.



    Thanks, as always, for your consideration and support.


    Best regards,


    Douglas

    • Offizieller Beitrag

    mal schauen, wieviel Liqui ich noch habe....die provisorische Steuerrechnung fällig Ende Jahr, ist zwar auch noch gestern hereingeflattert...dringend gesucht: Verdoppler bis Ende Jahr 8).


    Lucky

    Uwe Bergold hat in seinem Fonds GR Dynamik OP MGN in den Top Ten!


    3,4% DRDGOLD LTD. REG. SH..
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    72,5% übrige Positionen

    January 21


    SPOKANE, Wash., Jan 18, 2008 (BUSINESS WIRE) -- Mines Management, Inc. (MGN: mines mgmt co com) (TSX:MGT) (the Company) is pleased to announce it will present at the Vancouver Resource Investment Conference, scheduled for January 20 and 21, 2008, at the Vancouver Convention & Exhibition Centre, 200 - 999 Canada Place, Vancouver, British Columbia.
    The Company's booth number is: 1111
    The Company will also provide an update on activities at the Montanore Silver Project on Monday, January 21st, at 4:10 p.m. in Workshop #4. The presentation will focus on exciting progress being made at the Montanore Project.
    Register at the booth to win a beautiful 1 Kilo Kookaburra Silver Coin. Drawing to be held during the Company's presentation.
    Pre-registration to the conference is free. Information about the conference can be obtained at the conference's website at the following location: http://www.cambridgehouse.ca, or by clicking on the following link to the Cambridge House Vancouver Conference ( http://cambridgehouse.ca/ch_jan2008.html#Agenda/).
    Statements made which are not historical facts, such as participation in industry events, permitting, drill results, engineering and feasibility, and the timing of such activities, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production and costs, exploration risks and results, political risks, project development risks, labor issues and ability to raise financing. Refer to the company's Form 10-Q and 10-K reports for a more detailed discussion of factors that may impact expected future results. These disclosures are accessible on the company's website at http://www.minesmanagement.com and at http://www.sec.gov.
    SOURCE: Mines Management, Inc.


    Mines Management, Inc.
    Vice President Corporate Development & Investor Relations
    Douglas Dobbs, 509-838-6050
    info@minesmanagement.com

    Revett hat ein "aufgegebenes Projekt" in den Cabinet Mountains gefunden.


    Hört sich wie die Aquiline-Ima Kontroverse an. :D


    Jetzt muß sich Dobbs nicht nur mit den Grizzlis und Forellen rumschlagen, sondern auch noch mit den Federal Behörden, die von seiner Existenz nichts wissen wollen.

    Mail von Douglas:


    Activities at the Montanore are continuing to advance. Our recent hiring of Mr. John Thompson as Vice President and General Manager has greatly assisted us in taking the next steps necessary to completing the feasibility drill program over the next eighteen months. He is highly skilled in developing underground mining projects, and we are fortunate to have him as part of our company.
    Also, since completion of the Preliminary Draft EIS in November, the agencies are working toward completion of the Draft EIS expected in the middle of this year (2nd or 3rd quarter), followed by public review.


    Thank you, also, for the pictures.They bring back memories of a fun time in Munich. I greatly appreciated the opportunity to meet you and the time of discussion in person.


    Your support and consideration is greatly appreciated. We look forward to visiting Munich again during 2008.


    Best wishes,
    Douglas

    @heron/ulfur


    Mail von Douglas auf den Brief mit Revett:


    Dear XXX,


    I appreciated receiving your inquiry. Revett have become very aggressive in
    their opposition to the Montanore, as evidenced by their 'mid-October'
    letter challenging our valid permits. We are committed to ensuring that
    their actions do not further compromise our efforts to successfully develop
    the Montanore Project, which already has valid permits.


    Thank you for your support and consideration.
    Douglas

    State of Montana Confirms Montanore Project's 1993 Operating Permit


    Monday , March 03, 2008 08:00ET


    SPOKANE, Wash., Mar 03, 2008 (BUSINESS WIRE) -- Mines Management, Inc. (AMEX:MGN) (TSX:MGT) (the Company) is pleased to announce that its wholly owned subsidiary, Montanore Minerals Corporation (MMC), has received notification from the State of Montana Department of Environmental Quality (DEQ) that it has confirmed Hard Rock Operating Permit 150 for the Montanore Project as an active permit. This permit was originally approved and issued in, and remained in force since, 1993.


    Consistent with that determination, the DEQ has requested, and the Company has agreed, to withdraw its application for a new operating permit and to propose amendments to reflect the current status of the project.


    Glenn M. Dobbs, the Company's President and CEO, commented, "We are gratified with the state's confirmation of the permit, as it accurately reflects our long held belief that Montanore is an existing project, not an application for a new project. It is an important clarification."


    Concurrently with DEQ review, the U.S. Forest Service will continue its full review of the preliminary draft Environmental Impact Statement submitted by the Company in November 2007. The state agency will continue to work together with the U.S. Forest Service on development of the amended draft Environmental Impact Statement as part of the ongoing state and federal permitting processes.


    Mines Management, Inc., is a U.S. based mineral exploration company focused on the Montanore Silver-Copper Project located in northwestern Montana. The Montanore Project is currently undergoing an advanced stage exploration and evaluation program and permitting process.


    SOURCE: Mines Management, Inc.


    Mines Management, Inc.
    Douglas Dobbs, 509-838-6050
    Vice President Corporate Development & Investor Relations
    info@minesmanagement.com

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