Mines Management, Inc. (NYSE-Amex:MGN) (TSX:MGT) is pleased to announce financial and operating results for the second quarter ending June 30, 2010.
In the second quarter of 2010:
- The U.S. Forest Service (USFS) and the Montana Department of Environmental Quality (DEQ) continued formulating responses to public comments received on the Draft Environmental Impact Statement (DEIS) for the Montanore Project in 2009.
- The Company’s exploration and corporate development team continued to explore additional resource opportunities in North America and Latin America.
- The Company continued meetings with federal and state agencies, Montana legislators, local Lincoln County Commissioners, Libby City officials and residents.
- The Company closed out the quarter at June 30, 2010 with $9.0 million of unrestricted cash and certificates of deposit.
- The Company continued its program to reduce expenditures and conserve cash pending the completion of permitting.
The net cash operating expenditures for the six months ended June 30, 2010 was $3.6 million. The Company believes that it has sufficient working capital to complete the rehabilitation of the Libby adit and initiate delineation drilling at Montanore.
Advanced Exploration and Delineation Drilling Program
Second quarter operations included continued operations on the Montanore mine site water treatment system and maintaining the water level of the decline. Water from the decline is being treated on day shift at a rate of 350 gallons per minute which equates to approximately 72 gallons per minute of water infiltration from the formations. Ongoing water monitoring continues with respect to the water treatment in order to generate data which is used in monthly reports furnished to the Montana DEQ for monitoring purposes and for the hydrological data base that is currently under development through our hydrology contractor.
In April 2010, the Company awarded a contract to Mine Quarry Engineering Services (MQES) to develop an economic assessment of the project using the existing NI 43-101 resource report prepared by Mine Development Associates and to develop a Preliminary Economic Assessment (PEA) of the Montanore Project.