DGAP-News: United Mining Group Increases its Contiguous Exploration Holdings by 265%
(firmenpresse) - United Mining Group / Key word(s): Letter of Intent
12.10.2010 15:12
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Vancouver, British Columbia: United Mining Group, Inc. (the 'Company'),
(TSX: UMG; Frankfurt: UM8) announces that it has signed a letter of intent
(LOI) that will increase its contiguous exploration land holdings by 265%
from approximately 143 hectares (353 acres) to a total of 379 hectares (937
acres) at the Crescent Mine project. The Company has 30 days to complete
its due diligence and has already commenced its environmental evaluation.
Acquisition Highlights:
- The new claims lie adjacent to the west of the Company's Crescent Mine
property.
- These claims more than double the potential, silver-hosting area
available to the Company.
- The major silver-hosting structures, Alhambra and South fault zones,
strike westerly onto the acquisition.
- Historic exploration on the claims include:
o Approximately 15,000 feet (4.5 km) of cross cuts and development
drifts on structures which identified mineralized structures at surface and
projected from underground workings
o Mining of at least four small stopes along the Alhambra fault
o A 200 ton mill test of ore from one of these adits.
Agreement terms:
o $US 100,000 was paid to the seller upon acceptance of the LOI
o $US 400,000 payable upon closing of definitive agreement
o $US 750,000 payable within 6 and 12 months of the definitive
agreement
o 1% net smelter royalty is payable and subject to a UMG buy back
option for $1,000,000
'This acquisition, along with our recent securing of initial milling
capacity, will certainly open up immediate growth opportunities for the
Company. The significance of these claims being along the structural
strike of known ore zones and host to the Sunshine Mine and the Bunker Hill
Mine, cannot be underestimated and significantly increase the UMG inventory
of immediate and near term exploration property', commented Charles
Pitcher, CEO of the Company.
This agreement is subject to approval by the Toronto Stock Exchange.
About United Mining Group
United Mining Group is a profitable, vertically integrated mining company
with operations in Idaho, USA. The Company offers a full suite of mining
services including contract mining to silver miners in the district. The
Company owns its own custom welding and fabrication shop allowing it to
repair/rebuild equipment for its own use and for outside mining companies.
The Company is currently earning, through development and operations, an
80% interest in the Crescent Silver Mine adjacent to the Sunshine Silver
Mine in the Silver Valley. The Crescent Mine has historically produced 25
million ounces of silver at an average grade of 27.3 opt (SRK Consulting
43-101 report, March 1, 2010). UMG currently has an indicated resource of
6.1 million ounces silver (324,000 tons grading 18.7 opt silver) and
additional inferred resources of 4.1 million ounces silver (211,000 tons
grading 19.5 opt silver).
UMG is committed to building a senior silver-producing mining company based
on aggressive exploration and development of the highly-prospective current
land position at Crescent and through the acquisition of additional silver
interests.
For more information about the Company, please visit:
www.unitedmininggroup.com
In compliance with NI 43 101, Lawrence Dick, Ph.D., P.Geo., is the
Qualified Person responsible for the accuracy of this news release.
'Charles Pitcher'
Charles Pitcher
Chief Executive Officer
FORWARD LOOKING STATEMENTS: This press release contains forward-looking
statements, which address future events and conditions, which are subject
to various risks and uncertainties. Forward looking statements in this
press include that we will earn an interest in the Crescent Silver Mine,
and that we can build a senior silver-producing mining company based on
aggressive exploration and development of the highly-prospective current
land position at Crescent and through the acquisition of additional silver
interests. The Company's actual results and financial position could differ
materially from those anticipated in such forward-looking statements as a
result of numerous factors, some of which may be beyond the Company's
control. These factors include: results of exploration activities and
development of mineral properties, fluctuations in the marketplace for the
sale of minerals, the inability to implement corporate strategies, the
inability to obtain financing, currency fluctuations, general market and
industry conditions and other risks disclosed in the Company's filings with
Canadian Securities Regulators.
Forward-looking statements are based on the expectations and opinions of
the Company's management on the date the statements are made. The
assumptions used in the preparation of such statements, although considered
reasonable at the time of preparation, may prove to be imprecise and, as
such, undue reliance should not be placed on forward-looking statements.
The Company expressly disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise.
The TSX Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of the content of this news release.
FOR MORE INFORMATION, PLEASE CONTACT:
Greg Stewart
President&Chief Operating Officer
Tel: +1 208.682.9018
Email: gstewart(at)unitedmininggroup.com
12.10.2010 15:12 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Datum: 12.10.2010 - 15:12 Uhr
Sprache: Deutsch
News-ID 32341
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
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