Update - Mines Management Prepares for Exploration on La Estrella Gold-Silver Project
Spokane, Washington - May 25, 2012 - Mines Management, Inc. (NYSE-Amex: "MGN", TSX: "MGT") (the "Company") is pleased to announce preparations, through its subsidiary Minera Montanore Peru SAC, for the upcoming exploration program at its La Estrella gold-silver project located in central Peru.
The goals of the initial 2500-meter program are to confirm continuity of mineralization on the southwest side of the deposit, to better define the extent of high grade mineralization at depth in that area, and to test a recently-identified geophysical target. Surface exploration, including soil geochemistry, is also planned for selected areas adjacent to the principal area of mineralization. Drilling is planned to commence before the end of May.
The La Estrella project has undergone three previous drilling programs in 2003, 2007, and 2008, totaling 5,796 meters in 33 holes across an area approximately 1,800 by 300 meters where a large zone of mineralization has been delineated to a maximum depth of 200 meters below surface. In 18 of the holes, mineralized intervals of more than 50 meters in length averaged 133.5 meters with mean grades of 0.35 grams per tonne (gpt) gold and 24.6 gpt silver. A table describing the complete drilling results will be available on the Company's website at www.minesmanagement.com/LaEstrellaDrillholes.php.
Preparations for exploration have included selection of contractors to conduct drilling, oversee logistics and personnel, construction of camp infrastructure, renewal of community surface access agreements, health and safety, and program administration. Extensive discussions and agreements have been held between the Company and the local community. The Company believes that previous exploration programs on the project were conducted in a responsible manner, and the community is supportive of the planned exploration activities. The Company has agreed to utilize certain services provided by local community members and businesses, including road building, excavation and reclamation of drill sites over the course of the program.
As described in the Company's April 10th announcement, Mines Management, Inc. recently finalized agreements with Estrella Gold Corporation under which the Company can earn 75% of the La Estrella project by conducting exploration activities on the property and making periodic payments.
Michael G. Rasmussen, PhD, Vice President of Exploration for Mines Management, Inc., is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and has approved the technical information contained in this news release.
About Mines Management
Mines Management, Inc. is engaged in the business of acquiring and exploring, and if exploration is successful, developing mineral properties containing precious and base metals. The Company's primary focus is on the advancement of the Montanore silver-copper project located in northwestern Montana. The Montanore is an advanced stage exploration project containing a Canadian NI 43-101 compliant measured resource of 4.03 million tons of material grading 1.85 ounces per ton ("opt") silver and 0.74% copper, an indicated resource of 77.5 million tons grading 2.05 opt silver and 0.75% copper, and an inferred resource of 35.1 million tons grading 1.85 opt silver and 0.71% copper, and is currently undergoing the process to obtain permitting approval. Additional information is available at Mines Management's website: www.minesmanagement.com.
Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Mineral Resources:
This press release uses the terms "Measured Mineral Resource", "Indicated Mineral Resource", and "Inferred Mineral Resource." We advise U.S. investors that while those terms are recognized and required by Canadian National Instrument 43-101, the Securities and Exchange Commission does not recognize them. U.S. 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. Inferred Mineral Resources have a greater amount of uncertainty as to their existence and as to their economic and legal feasibility. In accordance with Canadian rules, estimates of Inferred Mineral Resources cannot form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that part or all of the Inferred Mineral Resources exists, or is economically or legally mineable. Disclosure of "contained ounces" in a Mineral Resource is permitted under Canadian regulations, however, the SEC normally only permits issuers to report mineralization that does not constitute 'reserves' by SEC standards as "in place" tonnage and grade without reference to unit measures. Accordingly, the information contained in this press release may not be comparable to similar information made public by U.S. companies that are not subject to NI 43-101.
Statements Regarding Forward-Looking Information: Some statements contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable U.S. and Canadian securities laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially, including planned exploration activities and geologic studies at the La Estrella exploration property in Peru and planned use of local businesses for certain activities. Actual results may differ materially from those presented. Factors that could cause results to differ materially include delays in commencing or problems with exploration at La Estrella, unsatisfactory exploration results, changes in geologic interpretations, political unrest or delays in obtaining community agreements or permitting in Peru in connection with planned exploration activities, world economic conditions or fluctuations in silver and copper prices. Mines Management, Inc. assumes no obligation to update this information. There can be no assurance that future developments affecting Mines Management, Inc. will be those anticipated by management. Please refer to the discussion of risk factors in the Company's Form 10-K for the year ended December 31, 2011, as amended.
FOR MORE INFORMATION:
Mines Management, Inc.
Douglas Dobbs, Vice President of Corporate Development
905 W. Riverside Avenue - Suite 311
Spokane, Washington 99201
Phone: 509 838 6050
Fax: 509 838 0486
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