Gold, Silver Futures Turn Higher as U.S. Dolllar Retreats

Wednesday, October 5, 2011, 2:03pm EDT Written by GoldAlert Staff.

Gold and silver futures turned sharply higher Wednesday afternoon amid a broad-based rally in the commodities complex.

COMEX gold futures, per the December contract, advanced $25.80, or 1.6%, to $1,641.80 per ounce. The yellow metal had hovered near $1,620 for most of the morning, but headed north as the U.S. dollar extended its losses against a basket of foreign currencies.

Silver futures for December delivery on the COMEX rose $0.49, or 1.7%, to $30.33 per ounce this afternoon, after trading as low as $28.435 early this morning.

Gold and silver stocks extended their gains this afternoon, as the Philadelphia Gold & Silver Index (XAU) rallied 4.0% to 185.86. Among gold producers, Randgold Resources (GOLD) and Yamana Gold (AUY) climbed 4.0% and 5.9%, respectively. As for silver miners, Pan American Silver (PAAS) added 3.9% and Silver Standard Resources surged 7.3%.

Cyclical commodities posted gains as well, with copper up 0.7% at $3.12 per pound and crude oil higher by 4.6% at $79.11 per barrel.

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 Turn Higher as U.S. Dolllar Retreats

Mines Management Reaches Permitting Milestone at Montanore