Mines Management, Inc. (NYSE Amex: MGN) (TSX: MGT) is pleased to announce financial and operating results for the second quarter ending September 30, 2010.
In the third quarter of 2010:
- The USFS and the DEQ continued formulating responses to public comments received on the DEIS for the Montanore Project.
- Mine Quarry Engineering Services (MQES), the Company’s contractor, continued its development of an Preliminary Economic Assessment (PEA) of the Montanore Project.
- 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, and local Lincoln County Commissioners, Libby City officials and residents.
- The Company closed out the quarter at September 30, 2010 with $7.4 million of unrestricted cash and certificates of deposit.
- The Company continued its program to reduce expenditures and conserve cash pending the completion of permitting.
Until the environmental review process is complete, the Company is prohibited from conducting drilling and other exploration activities at the Libby adit. Current operations at the Libby adit include ongoing treatment of inflow water through the water treatment plant. Water is treated at a rate of approximately 350 gallons per minute on day shift. This allows the inflow rate of approximately 72 gallons per minute to be treated and maintains the water level in the Libby adit at the 7200 foot level. Monitoring programs verify compliance with Montana DEQ standards by sending random samples to independent laboratories for analysis. Additional water monitoring programs verify non-degradation of the Libby Creek drainage by sampling programs in the stream and in monitoring wells near the site. Aquatic life monitoring programs continue to be carried out in the surrounding drainages through the Company’s biological contractor on a quarterly basis.