DGAP-News: United Mining Group Completes Milling Agreement for its Crescent Silver Mine
(firmenpresse) - DGAP-News: United Mining Group / Key word(s): Miscellaneous
United Mining Group Completes Milling Agreement for its Crescent
Silver Mine
13.01.2011 / 08:30
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Vancouver, British Columbia: United Mining Group, Inc. (the 'Company'),
(TSX:UMG; Frankfurt:UM8; OTCQX:UMGZF) announces that it has completed its
agreement, announced on October 7, 2010, with the New Jersey Mining Company
(NJMC) to secure near term milling capacity for the Company.
The agreement calls for UMG to provide the necessary funding to expand the
mineral processing plant to 360 tonnes per day estimated to be $US 2.3
million and gives UMG a one third equity ownership after completion of the
expansion. NJMC will continue to be the Operator. NJMC will conduct a
metallurgical test on bulk samples from both the Alhambra and South veins
before plant expansion work starts. The samples will be extracted through
the Countess decline which to date has been advanced approximately 1500
feet from the portal and is expected to be completed by the end of the
first quarter.
Initial metallurgical bench testing has been completed from drill core from
these veins and the bulk sample will be used to verify the recovery,
concentrate characteristics, flotation equipment design and ultimate
milling capacity obtained through previous milling operations for the mine.
Charles Pitcher, Chief Executive Officer comments, 'we are very pleased to
have a relationship with Fred Brackebusch, a well experienced local
engineer and President of NJMC. We have already initiated discussions for
growing the facility to eventually accommodate the treatment of the
Crescent Silver Mines' ultimate annual production target of 4 million
ounces of silver.'
Fred Brackebusch, Chief Executive Officer of NJMC, commented: 'The New
Jersey Mill Joint Venture will be beneficial for both NJMC and UMG by
reducing operating and capital costs for processing ores from both
companies' mines.'
About United Mining Group
United Mining Group is a 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 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
precious metals interests.
For more information about the Company, please visit:
www.unitedmininggroup.com
'Charles Pitcher'
Chief Executive Officer
FOR MORE INFORMATION, PLEASE CONTACT:
Greg Stewart (President)
Tel: +1 208.682.9018
Email: gstewart(at)unitedmininggroup.com
FORWARD LOOKING STATEMENTS: This press release contains forward-looking
statements, which address future events and conditions, which are subject
to various risks and uncertainties. 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.
End of Corporate News
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13.01.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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108828 13.01.2011
Datum: 13.01.2011 - 08:30 Uhr
Sprache: Deutsch
News-ID 32990
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
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