Gold, Silver Futures Retreat, U.S. Dollar Steady

Thursday, October 13, 2011, 4:08pm EDT Written by GoldAlert Staff.

Gold and silver futures moved lower Thursday as the U.S. dollar held steady against most of the world’s leading currencies.

COMEX gold futures, per the December 2011 contract, settled with a loss of $14.10, or 0.8%, at $1,668.50 per ounce.

Silver futures for December 2011 delivery on the COMEX fared worse, finishing lower by $1.12, or 3.4%, at $31.67 per ounce.

The sell-off in precious metals coincided this morning with strength in the U.S. Dollar Index (DXY), which climbed to as high as 77.43 this morning. Although the greenback relinquished the large majority of its gains this afternoon, gold and silver were unable to recover much of their earlier losses.

Gold and silver equities were pressured by the weakness in precious metals, as the Philadelphia Gold & Silver Index (XAU) closed down 1.9% at 191.45. Notable decliners included Agnico-Eagle Mines (AEM), Gold Fields (GFI), and Silver Standard Resources (SSRI) – which fell 1.5%, 2.1%, and 3.1%, respectively.

Mines Management Reaches Permitting Milestone at Montanore

Mines Management (MGN) announced that a Supplemental Draft Environmental Impact Statement (SDEIS) has been completed by the U.S. Forest Service for the Montanore Project. The Company’s flagship Montanore silver-copper project is located in northwestern Montana is one of the ten largest undeveloped silver resources in the world. The Project contains in-situ mineralization estimated at more than 230 million silver ounces and nearly 2 billion copper pounds.

If and when Montanore is fully permitted, Mines Management intends to complete rehabilitation and construction of its 14,000 ft. evaluation adit, followed by an underground drilling program. Data obtained from the drilling program will be used to support detailed engineering and development of a feasibility study. Full Mines Manegement Press Release.

HIGHLIGHTS:

Remaining steps of the permitting process include public review of the SDEIS and comments
Biological Consultation with the U.S. Dept. of Fish and Wildlife, concluding with a Biological Opinion
Final Environmental Impact Study, followed by a Record of Decision from the U.S. Forest Service

Glenn Dobbs, President and CEO:

"Completion of the SDEIS is a major step forward in the final phase of the permitting process. It signals a move toward completion of the process we began in 2005, since which time we have developed extensive documentation demonstrating the benign nature of this underground mining project, and the protections to the environment provided in the plan of operations."

Roth Capital:

Recently initiated coverage of MGN with a Buy rating and $5.00 price target.

Mines Management Interactive News:

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Gold, Silver Futures Retreat, U.S. Dollar Steady

Mines Management Reaches Permitting Milestone at Montanore