Mines Management (MGN) announced its financial and operating results for the fiscal year ended December 31, 2011. Over the past year the U.S.-based silver company has made significant progress in advancing its flagship Montanore silver-copper project.
Montanore is located in northwestern Montana and is one of the ten largest undeveloped silver resources in the world. The project has already undergone extensive engineering and is designed with an initial production capacity of approximately 12,500 tons per day. Montanore contains in-situ mineralization estimated at more than 230 million silver ounces and nearly 2 billion pounds of copper.
* Last year Mines Management raised $15.2 million through a public offering of common stock, the proceeds of which are intended for the advancement of the permitting process for its Montanore Project
* The proceeds will also be used for the start of the Company’s planned delineation drilling program and for general corporate purposes, including possible acquisition and exploration of new mining properties
* The U.S. Forest Service and the Montana Department of Environmental Quality continued their environmental review of the Montanore Project and the responses to comments received from the public and from the Environmental Protection Agency and issued the Supplemental Draft EIS in late September 2011
* In early 2012, the Company signed a letter of intent and has completed agreements with Estrella Gold Corp. for an option to acquire 75% of the La Estrella gold and silver exploration project located in central Peru
“In 2012, we plan to continue to focus on planning for our exploration and delineation drilling program at the Montanore Project pending the final permitting approvals. The completion of the 2011 financings should provide sufficient cash to complete the permitting process and initiate the adit rehabilitation and drill station development.”
Initiated coverage of MGN with a Buy rating and $5.00 price target.