Resource World Magazine

A P R I L / M A Y 2 0 1 6 www.resourceworld.com 33 mines management reCeives major montanore approval Mines Management Inc. [MGT-TSX; MGN-NYSE MKT] recently received some good news regarding its 100%-owned, advanced-stage, Montanore silver-cop- per project in northwest Montana. The company has now received a Records of Decision (ROD) approving development of the project from the US Forest Service (USFS) and the Montana Department of Environmental Quality (MDEQ). The agen- cies' decisions approve the project defined in the preferred alternative as outlined in the Joint Final Environmental Impact Statement (EIS) previously announced on December 21, 2015, and provide a path forward for development of the project. "We have crossed the goal line. The Record of Decision is the major approval to complete the final evaluation and devel- opment of the project contingent upon compliance with its conditions. We are excited to have completed the eleven year permitting process that included two draft Environmental Impact Statements and at least three rounds of public comment," said Glenn Dobbs, Chairman and CEO. Discovered in the 1980s and explored by previous operators who spent over $100 million, work ceased in the 1990s due to low metal prices. Since acquisition of the Montanore in 2002, Mines Management has spent over $75 million on dewatering and partial rehabilitation of the 14,000- foot decline (sloping tunnel), construction of site infrastructure, revised and updated resource estimates and a Preliminary Economic Assessment (PEA), as well as re- permitting the entire project. Mineralized material within two zones is estimated at 81.5 million tons grad- ing 2.04 oz silver/ton and 0.75% copper with mineralization open in several direc- tions. A third zone of mineralization has been identified, all of which manage- ment believes have potential to expand the resource. An independent 2011 PEA envisaged an underground bulk mining operation that would utilize conventional crushing and flotation processes to pro- duce a high quality concentrate for sale to smelters at low underground mining and processing costs. Initial throughput of 12,500 tons/day is projected to produce more than 6 million ounces of silver and 50 million pounds of copper annually. There is potential for expansion up to a permit- ted capacity of 20,000 tons/day. The Montanore Project, as currently permitted, includes more environmental pro- tections than what was originally approved in 1993, therefore, extra measures will be taken to protect wildlife and water resources. Other individual permits and authoriza- tions will be issued following the RODs. These would include the US Army Corps of Engineers' permit for the tailings and issu- ance of water rights. Mitigation is a major element of all permits required to protect the environment and critical habitat for wildlife and threatened and endangered species. Mines Management plans to pursue var- ious avenues of financing, and/or strategic business combinations, to advance the project through evaluation and feasibility, and development. n MININg

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