March 1, 2006
The Company’s Vice President of Operations, Mr. Eric Klepfer, stated, “We are very pleased with the work as its conclusions are consistent with the analyses completed by U.S. Borax and Noranda Minerals Inc., both former owners of the project. Based on the independent work completed, we plan to further evaluate the deposit toward optimizing the mine plan. This information is critical as we consider development of an underground drilling program. Computer modeling will assist in establishing drill targets to validate and enhance the current drill data used for this assessment. Along with continued progress on permitting, developing the underground drilling program will be the next important step toward evaluating this world class silver/copper deposit for production and identifying potential extensions of mineralization.“
Mr. Klepfer added, “Through the independent work of MDA, we are able to upgrade a significant portion of the deposit into the ‘Measured Resource’ and ‘Indicated Resource’ categories in accordance with Canadian standards. With a preliminary daily mine production design of 12,500 short tons per day (4.5 million short tons per year), this estimate provides a significant resource base with a potentially long mine life, a real positive for the project.” The independent review was conducted by MDA in Reno, Nevada, and overseen by Steve Ristorcelli, R.P. Geo., C.P.G. and David C. Fitch, C.P.G., both of whom are Qualified Persons under Canadian National Instrument 43-101.
Mineralized Material Estimate In Accordance
With
U.S. S.E.C. Industry Guide 7
Tons |
Silver Grade |
Copper Grade |
Cutoff Grade |
True Thickness |
|
(Ounces per ton) |
(Silver Ounces per ton) |
(feet) |
|||
| Mineralized Material | 81,506,000 |
2.04 |
0.75% |
1.0 |
35 |
In accordance with Canadian National Instrument 43-101, the Company has filed
on SEDAR an October 14, 2005
technical report by MDA titled “Technical Report on the copper and silver
Resource, Montanore Project, Lincoln and
Sanders Counties, Montana”, which reports the resources as follows:
Cautionary Note to US Investors concerning estimates of Measured and Indicated
Mineral Resources
This section uses the terms “measured mineral resources” and “indicated
mineral resources”. We advise US investors
that while those terms are recognized and required by Canadian regulations,
the US Securities and Exchange
Commission does not recognize them, and describes the equivalent as “Mineralized
Material”. US Investors are
cautioned not to assume that any part or all of the mineral deposits in these
categories will ever be converted
into mineral reserves.
This section uses the term “inferred mineral resources.” We advise
US investors that while this term is recognized and
required by Canadian regulations, the US Securities and Exchange Commission
does not recognize it. “Inferred mineral
resources” have a great amount of uncertainty as to their existence,
and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher
category. In accordance with Canadian rules, estimates of inferred mineral
resources cannot form the basis of feasibility
or other economic studies. US investors are cautioned not to assume that part
or all of the inferred mineral
resource exists, or is economically or legally mineable
MONTANORE PROJECT
Resource Estimate In Accordance
With
Canadian National Instrument 43-101
Tons
|
Silver Grade
|
Copper Grade
|
Cutoff
|
True Thickness |
|
(Ounces per ton)
|
(Silver Ounces per ton)
|
(feet)
|
|||
| Measured | 4,026,000
|
1.85
|
0.74%
|
1.0
|
39
|
| Indicated | 77,480,000
|
2.05
|
0.75%
|
1.0
|
34
|
| Inferred | 35,080,000
|
1.85
|
0.71%
|
1.0
|
32
|
With these resources, the deposit remains open to the northwest within the
company’s property holdings, providing
opportunity for growth.
The company continues to conduct engineering optimization and trade-off studies
for the mine plan, and activities
toward advancement of the re-permitting process.
Mines Management, Inc. is a U.S.-based mineral company focused on the acquisition
and exploration of silver
dominant mineral deposits. The company's primary focus is on the advancement
of the Montanore Silver-Copper
Project located in northwestern Montana.
Statements Regarding Forward-Looking Information: Some statements contained
in this news release are forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Investors are cautioned that forward-looking
statements are inherently uncertain and involve risks and uncertainties that
could cause actual results to differ materially. Such
statements include comments regarding the establishment and estimates of
mineralized material and non-reserve mineral
resources. Factors that could cause these estimates to differ materially
include variations in ore grade and ore type; variations in
relative amounts and types of ores; failure to receive government approvals;
technical, permitting, mining or processing issues, and
fluctuations in silver or copper prices. There can be no assurance that future
developments affecting the Company will be those
anticipated by management. Please refer to the discussion of these and other
factors in our Form 10-K for 2004. The forecasts
contained in this press release constitute management's current estimates,
as of the date of this press release, with respect to the
matters covered thereby. We expect that these estimates will change as new
information is received and that actual results will vary
from these estimates, possibly by material amounts. While we may elect to
update these estimates at any time, we do not undertake
to update any estimate at any particular time or in response to any particular
event. Investors and others should not assume that
any forecasts in this press release represent management's estimate as of
any date other than the date of this press release.
Further information about Mines Management, Inc. can be reviewed on the website
for the Securities and Exchange Commission at
www.sec.gov or on the company's website at www.minesmanagement.com. The company
is also subject to Section 501 of the TSX
Company Manual, and files reports on SEDAR, available at www.sedar.com
Contact:
Douglas Dobbs
Vice President, Corporate Development & Investor Relations
Mines Management, Inc. Douglas Dobbs, 509/838-6050 fax: 509/838-0486 email: info@minesmanagement.com website: www.minesmanagement.com
Source: Mines Management, Inc.