MINES MANAGEMENT, INC. (NYSE Amex:MGN) (TSX:MGT)(the “Company”) is pleased to announce results for the first quarter, 2010.
In the first quarter of 2010:
- The U.S. Forest Service (“USFS”) and the Montana Department of Environmental Quality (“DEQ”) continued compiling responses to comments from the public received on the Draft Environmental Impact Statement (“EIS”) for the Montanore Project.
- The Company’s exploration and corporate development team continued to examine additional opportunities in North America and South America.
- The Company maintained a strong cash and investment position at March 31, 2010, with $11.0 million of unrestricted cash and certificates of deposit.
- The Company entered into an agreement with Mine Quarry Engineering Services (“MQES”) to begin preparation of a Preliminary Economic Assessment (“PEA”) for the Montanore Project.
- The Company continued its program to reduce expenditures and conserve cash pending the completion of permitting.
The net decrease in cash and cash equivalents for the quarter ended March 31, 2010 was approximately $1.6 million. The Company has reviewed the near term spending forecast and implemented a plan to conserve cash where prudent.
Advanced Exploration and Delineation Drilling Program
Libby operations in the first quarter of 2010 included continued operations on the Montanore site water treatment system and dewatering of the decline. Monitoring continues to provide data for the hydrologic database that is currently under development through the Company’s contractor. The Company expects that the resulting model will support its position on the water issues being considered by the agencies in the permitting process.
The Company awarded a contract to MQES in April to carry out work for the PEA. Engineering and geology work continues using existing information in support of ongoing engineering work and analysis for the PEA.