Mines Management Signs Letter of Intent to Acquire La Estrella Gold-Silver Property In Peru
(Thomson Reuters ONE) -
RELEASE #12-01
Spokane, Washington - January 10(th), 2012 - Mines Management, Inc. (NYSE-Amex:
"MGN", TSX: "MGT") (the "Company") is pleased to announce it has signed a letter
of intent ("LOI") with Estrella Gold Corp. ("EGC") for an option to acquire up
to 75% of the La Estrella gold and silver project ("Project") located in central
Peru approximately 230 km southeast of Lima.
The La Estrella property ("La Estrella") contains approximately 2,500 hectares
of land within the Central Peru polymetallic belt, located 130 km 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 electricity, and lies within 30 km of Minera
Buenaventura's historic Julcani Silver Mine which began operation in 1955. EGC
has established and maintained constructive community agreements with all
stakeholder communities, and the property is already fully permitted for
additional drilling.
Mr. Glenn M. Dobbs, the Company's President and CEO, stated, "The La Estrella
exploration project represents Mines Management's step into one of the most
prolific silver and gold regions in the world. The Project is in a favorable
district, and possesses a number of very positive attributes including previous
exploration success, and a permitted drilling program which may afford us the
ability to move forward expeditiously. We look forward with enthusiasm to the
prospect of working with EGC on the project."
The terms of the LOI allow MGN through its subsidiary, Minera Montanore Peru,
SAC, to earn 75% of the La Estrella project by expending $5 million over four
years on exploration activities. Option payments would include $50,000 due upon
signing of the definitive agreements, which will supersede the LOI, $100,000
upon the first anniversary of such signing, and $200,000 annually thereafter
until completion of the earn-in. Work expenditures would include $500,000 in
the first year, including 2,500 meters of drilling, $500,000 in the second year,
including 2,500 meters of drilling, and completion of a preliminary economic
assessment on a defined resource on the property. Mines Management, Inc.'s
minimum outlay includes $50,000 due upon signing, and $350,000 of the first
year's work commitment, for a total of $400,000. If MGN elects to exercise the
option by completing all option payments and expenditures, EGC would retain a
25% interest carried to production. The LOI allows MGN to conduct a period of
additional exclusive due diligence until March 1, 2012, during which time
definitive agreements are expected to be negotiated and executed.
La Estrella is an advanced exploration stage project which contains an
epithermal, volcanic-hosted gold-silver system with associated base-metal
mineralization extending over a strike length of at least 1,200 m. Previous
exploration on the property included surface sampling, 22 diamond drill holes
and 11 reverse circulation drill holes, where all but two holes encountered gold
and silver mineralization.
Two different styles of mineralization are present within a 1,200 meter north-
south by 200 meter east-west zone, which remains open for expansion. The
largest area of mineralization occurs as a north-south trending, west dipping,
irregular, stratabound zone measuring 50-150 meters in thickness, where gold and
silver mineralization of low to moderate grade has been intersected along strike
for 600 meters, remaining open to the north, south, and west (down dip). The
second type of gold and silver mineralization occurs in north and northeast
trending, sub-vertical fault zones which cross-cut the stratabound zone with
mineralization of higher grade.
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 prepared, reviewed and verified 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 forty-one exploration properties, including their flagship Colpayoc
Project, with thirty-four 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, 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 Resources," "Indicated
Mineral Resources" 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 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 anticipated entering into of
definitive agreements with Estrella Gold Corp. regarding the La Estrella gold
project, planned and potential exploration activities and expenditures on the La
Estrella gold property. Actual results may differ materially from those
presented. Factors that could cause results to differ materially include the
inability to complete the negotiation of definitive agreements with Estrella
Gold Corp., the results of exploration and the preliminary economic assessment
at La Estrella, the interpretation of previous drilling results; insufficient
funding to complete earn-in expenditures, community or political unrest 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, 2010, as amended.
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
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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#1576238]
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Datum: 10.01.2012 - 15:01 Uhr
Sprache: Deutsch
News-ID 102761
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