SPOKANE, Wash., March 30, 2015 (GLOBE NEWSWIRE) -- Mines Management, Inc. (NYSE-Market:MGN) (TSX:MGT) (the "Company") is pleased to announce that on March 26, 2015, the United States Forest Service (USFS) announced completion and issuance of the Final Environmental Impact Statement (EIS) for the Montanore Project. Based on the agency's analyses of issues considered throughout the review process, the USFS is also issuing a Draft Record of Decision (ROD) indicating its intent to authorize the Project. Completion of the Final EIS and Draft ROD signal commencement of the final phase of the permitting process for the Montanore Silver-Copper Project located in northwestern Montana.
Glenn M. Dobbs, Chairman and CEO, commented, "The publication of the Final EIS is the culmination of ten years of technical and environmental analysis, including the completion and distribution of two Draft EIS's, and significant public input, all of which has been incorporated into the project plan. In light of the Montanore Project's original approvals in 1993, we are gratified the project is nearing conclusion of a prolonged process in which significant improvements have been made to the project's environmental footprint including mitigation to protect important water resources, wildlife and habitat. Development and operation of the Montanore Mine will result in enhancements to habitat and wetlands which otherwise would be impossible in the absence of the project and which will contribute to, and protect, the recovery of local threatened and endangered species which have struggled to gain a foothold for decades.
Mr. Dobbs stated further, "Of great importance to the region, the build out of the Montanore Project would employ up to 500 people and result in a permanent production workforce of more than 300 people bringing a large annual payroll to Lincoln County which currently has an unemployment rate of 13%, the highest in the state and more than double the national average. The positive effects of the Montanore Mine on Libby and Lincoln County's roads, schools, hospitals and health care, businesses and other infrastructure are incalculable. We are thrilled to have reached this point and are thankful for the unwavering support by members of the community, City and County Commissioners, members of the Legislature, the state's Congressional delegation, as well as the significant work by some individuals within the State and Federal agencies overseeing the process. We are confident the remaining step in the permitting process will remain on track and conclude within the time allotted."
NEXT STEPS
With publication of the Final EIS and Draft ROD, the project enters the final phase of agency authorization. Upon issuance of the Final ROD by the USFS and Montana Department of Environmental Quality (MDEQ), the Company will be authorized to commence activities for the project and, subject to meeting permit requirements and obtaining additional external financing, looks forward to resuming rehabilitation of the Libby Adit preparatory to underground evaluation and a bankable feasibility study required for financing the capital construction of the mine.
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, which deposit contains mineralized material of approximately 81.5 million tons with average grades of 2.04 ounces silver per ton and 0.74% copper.
In 2011, in accordance with Canadian National Instrument (NI) 43-101, the Company completed a 3rd party Preliminary Economic Assessment (PEA) which indicated robust potential economics. The mineral resource is considered to contain the following:
| Tons | Silver Grade (oz. per ton) | Copper Grade | |
| Measured | 4,026,000 | 1.85 | 0.74% |
| Indicated | 77,480,000 | 2.05 | 0.75% |
| Inferred | 35,080,000 | 1.85 | 0.71% |
When full approval of the project is achieved, the Company plans to initiate work to complete construction of an evaluation decline, conduct delineation drilling, detailed engineering and, if results of these activities are positive, a final feasibility study as it advances toward development. These efforts, and continuation of the Company's business, will be dependent on obtaining external financing. Additional information is available on the Company's website at 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 Resource", "Indicated Mineral Resource", and "Inferred Mineral Resource." 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. 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 anticipated issuance of the final Record of Decision and Environmental Impact Statement and planned activities following completion of issuance including construction of the evaluation decline, delineation drilling, detailed engineering and completion of a feasibility study, anticipated completion of permitting for the Montanore project and the timing thereof, anticipated drilling and engineering activities and geologic and feasibility studies; mineral resources; and required external financing. Actual results may differ materially from those presented. Factors that could cause results to differ materially include delays in and increases in the cost of completing work related to the Record of Decision and final Environmental Impact Statement, whether external financing for the Company's business can be obtained on acceptable terms or at all; continued disputes regarding claim ownership and rights in the Montanore Project area, changes in interpretation of geological information, whether additional permitting may be required at Montanore in the future; the results of delineation drilling and feasibility studies; continued decreases and future fluctuations in silver, gold and copper prices; and world economic conditions. 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, 2013, as amended.