MINES MANAGEMENT, INC. (NYSE Alternext US: MGN) (TSX: MGT), announces
results for the 3rd quarter, 2008.
Advancing the Montanore Silver-Copper Project continues to be the
Company’s main focus. In addition to its advanced exploration and
delineation drilling program, the Company is continuing its repermitting
efforts with federal and state agencies and its optimization review of
the Project.
Overview
In the third quarter of 2008:
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The U. S. Forest Service and the Montana DEQ continued their joint
review of the preliminary draft environmental impact statement (PDEIS).
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Small Mine Development (SMD), an independent contractor engaged by the
Company to assist with the rehabilitation of the Libby Adit, mobilized
in late August to assist in the excavation of two sumps and placed
them into service as part of the overall dewatering system to clarify
water before sending it to the water treatment plant.
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The Company maintained a strong cash position with $19.6 million of
unrestricted cash and unrestricted certificates of deposit at
September 30, 2008.
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The Company continued to build its Investor Relations program by
increasing retail contacts as well as investment conference attendance
during the quarter (3 shows).
The primary cash expenditures for the quarter ended September 30, 2008,
were $5.0 million for the purchase of a certificate of deposit, $1.8
million for the purchase of securities, and $1.5 million for operating
activities. Management has reviewed near-term spending and implemented a
plan to conserve cash where prudent. The Company believes that it has
sufficient working capital to complete the rehabilitation of the Libby
adit and to commence delineation drilling.
Advanced Exploration and Delineation
Drilling Program
Libby operations in the third quarter of 2008 showed progress in
implementing the Montanore site water treatment system, including
constructing two dewatering sumps, continued design work on the nitrate
removal system and mobilization of the adit rehabilitation contractor.
Two sumps were excavated and placed into service during the third
quarter of 2008. These sumps consist of two declining drifts
approximately 15 ft. x 15 ft. in section and 80 ft. long each. These
sumps are part of the overall dewatering system designed to clarify mine
water before sending it to the water treatment plant on the surface. A
suspended platform was constructed and installed in one sump, allowing
for personnel access to the sump pumps. Construction of the sumps
allowed a good test of most of the mining equipment that will be used
for decline advancement and future mine development. The jumbo, roof
bolter, LHDs and haul trucks were all used to construct the sumps. Other
support equipment saw limited use, such as the explosives loading truck
and scissor lift truck.
Engineering for the nitrate removal addition to the water treatment
system is advancing in accordance with expectations. The current
schedule is to have the design completed in early December, with
construction set to begin in late April or early May 2009. In accordance
with this schedule, the plant is expected to be ready for operation when
the EIS is issued next year. Engineering and geology work continue using
existing information.
Permitting and Environmental
In the third quarter of 2008, the U.S. Forest Service (USFS) and Montana
Department of Environmental Quality (MDEQ) continued to conduct its
internal review of the preliminary draft environmental impact statement
(PDEIS). In addition, the USFS and MDEQ are expected to finalize their
selection of the preferred alternative in November, which may be
included in the PDEIS submitted for public review.
