Montanore Project Overview

Introduction

Mines Management's wholly owned Montanore Project hosts one of the world's largest Silver-Copper deposits containing in-situ mineralization estimated at more than 230 million ounces of silver and nearly 2 billion pounds of copper, not considering dilution or sub-economic mineralized zones.

The project has already undergone extensive engineering, and is designed with an initial production capacity of approximately 12,500 tons per day estimated to yield 8 million ounces of silver and 60 million pounds of copper, with the added potential to increase production.

Excellent Infrastructure

The project is located very close to infrastructure necessary for the development and operation of the mine including highway, railway, low cost power and supply of labor.

World Class Silver District

Located in northwestern Montana, the Montanore Deposit exists in one of the most prolific silver regions in the world near the North Idaho Silver District, only 40 miles away.

The Montanore is situated at the northern end of a trend extending south to the Coeur d'Alene Silver District, which has historically produced more than 1 billion ounces of silver.

Geologically, the deposit is categorized as a stratabound sediment-hosted silver-copper deposit, and is one of three major deposits in the area, including the Troy Mine and Rock Creek deposit.
World Class

Advanced Stage

Mines Management benefits from a significant amount of work already completed on the project since its discovery in 1983. Work completed by previous operators includes the following:

Current Status

The project is currently undergoing advanced stage engineering and re-permitting. In mid-2006, Mines Management obtained early permits from the previous operator anticipated to allow the commencement of an underground evaluation program.

The underground evaluation program includes rehabilitation of the existing adit and replacement of infrastructure, extension of the adit 3,000 feet to the mineralized zone, and a 48,000 ft. diamond drilling program. The objective of the two phase evaluation program is to validate the resource, convert resources to a mineable classification, and to gather technical data necessary for completion of a final feasibility study. There exists a potential to expand the resource, as well.

The first phase of the evaluation program is designed to delineate production for years 1 and 2, and the second phase to delineate production for years 3, 4, and 5. The program is anticipated to take approximately 24 months.

Re-permitting

By 1993, the previous operator, Noranda Minerals Corp., successfully completed the required environmental review process required by the National Environmental Policy Act (NEPA) and development of a full Environmental Impact Statement (EIS) that led to approval and receipt of permits to development of the mine.

Low metals prices ultimately led to withdrawal from the project in 2002 and relinquishment of most of the operating permits, leading Mines Management to re-initiate the NEPA process and development of an updated EIS.

Mines Management is optimistic about the likelihood of completing the NEPA and EIS processes, and receiving the permits to construct and operate the Montanore Mine.

In addition to having been previously permitted, the project has the advantage of being designed as an underground mine utilizing a time-proven, non-cyanide based conventional crushing and flotation processing method.

Further, there is significant local and state level political support for the development of the project as it would provide high quality, long term employment opportunities. Recent political support includes the Governor of Montana who has publicly pledged his support for development of the project.
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