MINES MANAGEMENT FINALIZES EARN-IN AGREEMENT FOR LA ESTRELLA GOLD-SILVER PROJECT
(Thomson Reuters ONE) -
MINES MANAGEMENT FINALIZES EARN-IN AGREEMENT FOR LA ESTRELLA GOLD-SILVER PROJECT
RELEASE 12-03
Spokane, Washington - April 10, 2012 - Mines Management, Inc. (NYSE-Amex: "MGN",
TSX: "MGT") (the "Company") is pleased to announce it has executed an agreement
(the "Agreement") with Estrella Gold Corp. ("EGC") pursuant to which the Company
can earn 75% of the La Estrella Project (the "Project") in central Peru. The La
Estrella is an advanced stage exploration project on which a large gold and
silver mineralized zone has been identified through previous surface exploration
and drilling. Under a current exploration permit, the Company intends to
initiate a drilling program with the objective of identifying potential higher
grade extensions to the mineralization, and to conduct additional surface
mapping, and geophysical analysis.
The La Estrella property encompasses approximately 2,500 hectares of land within
the Central Peru polymetallic belt, located approximately 130 kilometers south
of Huancayo in the Department of Huancavelica, a region with a history of silver
mining dating to the 1500's. The Project is in an area of established
infrastructure, with roads and electric power, and lies within 30 kilometers of
Minera Buenaventura's historic Julcani Silver Mine which opened in 1955 and
operates today. EGC has established and maintained constructive community
agreements with all stakeholder communities, and the property is fully permitted
for additional drilling.
Mr. Glenn M. Dobbs, the Company's President and CEO, stated, "La Estrella
represents Mines Management's step into one of the most prolific silver and gold
regions in the world. The Project is in a favorable mining district, and
possesses a number of positive attributes including previous exploration
success, and a permitted drilling program which affords us the ability to move
forward expeditiously. We look forward to working with EGC, and are excited to
see what the upcoming drilling and exploration program may uncover."
Previous exploration on the property included extensive surface sampling and
geophysics, and 22 diamond drill holes and 11 reverse circulation drill holes
where all but two holes encountered significant gold and silver mineralization.
Of the 33 drillholes completed, twenty contain mineralized intervals greater
than 30 meters in length with mineral grades of 0.4 grams per tonne (gpt) gold-
equivalent, or greater. Of these twenty drillholes, the average mineralized
interval was 123.8 meters (m) in length, with average grades of 23.6 gpt silver
(Ag) and 0.34 gpt gold (Au). Highlights of the previous drilling include DDH-E18
which had 317 m containing 34.6 gpt Ag and 0.30 gpt Au from 4.5 meters depth and
DDH-E12 which had 70.5 m at 71.8 gpt Ag and 0.84 gpt Au from 144 meters depth.
By conducting additional diamond drilling on the property, the Company seeks to
identify higher grade zones of mineralization and potential extensions to the
existing known mineralization. Further, MMI has identified additional
exploration targets on the property by a reinterpretation of existing
geophysical data. A table including all drill results will be made available for
review on the Company's website at the following location:
www.minesmanagement.com/LaEstrellaDrillholes.com
La Estrella mineralization consists of a volcanic-hosted, epithermal, Au-Ag
bearing zone of breccias, stockworks, and veins over an area approximately
1,800 by 300 meters. The volcanic rocks are part of a mid-Tertiary complex of
variably altered (quartz-sericite-pyrite) intermediate to felsic flows, ash-fall
tuffs, dikes, with textures ranging from aphyric to porphyritic and fragmental.
A stratabound zone of sulfidic mineralization 50-150 meters thick occurs at the
base of the volcanic package above a west-dipping unconformable contact with
underlying Permo-Triassic gypsum-rich hematitic sandstones. The stratabound
mineralization is cut and upgraded by a set of north to northeast-striking
extensional faults and remains open to the north, south, and west.
Under the terms of the Agreement, the Company and its wholly owned subsidiary,
Minera Montanore Peru, SAC, may earn 75% of the La Estrella Project by making
periodic option payments and expending $5 million on exploration related
activities.
Options payments include:
· $50,000 initial option payment - completed upon execution of the Agreement,
· $100,000 upon the first anniversary of such signing, and
· $200,000 annually thereafter until completion of the earn-in.
Work expenditures and activities include:
· Minimum $500,000 in the first year (of which $350,000 is mandatory), including
2,500 meters of drilling,
· Minimum $500,000 in the second year, including 2,500 meters of drilling,
· Completion of a Canadian National Instrument 43-101 compliant Preliminary
Economic Assessment on a defined resource on the property.
If the Company elects to exercise the option by completing all payments and
expenditures, EGC would retain a 25% interest carried to production.
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 Estrella Gold Corporation (TSX-V: EST)
Estrella is a Canadian exploration company focused on gold exploration and
resource definition in Latin America. EGC has extensive experience in Peru, with
thirty-six exploration properties, including their flagship Colpayoc Project,
with twenty-eight held in venture agreements, most in a strategic exploration
alliance with Cliffs Natural Resources Exploration Inc. (NYSE: CLF). Further
information is available at Estrella Gold's website: www.estrellagold.com.
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 NI43-
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 and Inferred
Mineral Resources:
This press release uses the terms "Measured Mineral Resources", "Indicated
Mineral Resource" and "Inferred Mineral Resources." We advise U.S. investors
that while those terms are recognized and required by Canadian NI 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 comments regarding
the planned and potential drilling and other exploration activities and
expenditures on the La Estrella gold property and timing of the same;
anticipated focus of exploration including efforts to identify higher grade
zones of mineralization and potential extensions to the existing known
mineralization. Actual results may differ materially from those presented.
Factors that could cause results to differ materially include unfavorable
results of the Company's exploration efforts and the preliminary economic
assessment at La Estrella, changes in the interpretation of exploration results
and geologic information; potential changes in the Company's priorities, that
could lead to a decision to terminate its agreements regarding the La Estrella
property; insufficient funding to complete earn-in expenditures; community or
political unrest, or changes in law in Peru; and 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.
FOR MORE INFORMATION:
Douglas Dobbs, Vice President of Corporate Development & Investor Relations
Mines Management, Inc.
905 West Riverside - Suite 311
Spokane, Washington 99201
Phone: 509-838-6050
Email: info(at)minesmanagement.com
Web: www.minesmanagement.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Mines Management Inc. via Thomson Reuters ONE
[HUG#1600987]
Unternehmensinformation / Kurzprofil:
Datum: 10.04.2012 - 15:01 Uhr
Sprache: Deutsch
News-ID 133446
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contact information:
Town:
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