Mines Management (MGN) announced preparation measures, through its subsidiary Minera Montanore Peru SAC, for the upcoming exploration program at its La Estrella gold-silver project in central Peru. The emerging silver company noted that the goals of the initial 2500-meter program are to confirm continuity of mineralization on the southwest side of the deposit, to better define the extent of high grade mineralization at depth in that area, and to test a recently-identified geophysical target.
The La Estrella project has undergone three previous drilling programs in 2003, 2007, and 2008, comprising 5,796 meters in 33 holes across an area approximately 1,800 by 300 meters where a large zone of mineralization has been delineated to a maximum depth of 200 meters below surface. In 18 of the holes, mineralized intervals of greater than 50 meters in length averaged 133.5 meters with mean grades of 0.35 grams per tonne (g/t) gold and 24.6 g/t silver.
* Last month, Mines Management signed an agreement with Estrella Gold Corp whereby it can earn a 75% interest in the La Estrella Project by making periodic option payments and expending $5 million on exploration related activities
* The Project is in an area of established infrastructure, with roads and electric power, and lies within 30 kilometers of Minera Buenaventura`s historic Julcani Silver Mine which opened in 1955 and operates today
* Surface exploration, including soil geochemistry, is also planned for selected areas adjacent to the principal area of mineralization
* Drilling is scheduled to begin before the end of May
Glenn M. Dobbs, President and CEO of Mines Management:
“La Estrella represents Mines Management`s step into one of the most prolific silver and gold regions in the world. The Project is in a favorable mining district, and possesses a number of positive attributes including previous exploration success, and a permitted drilling program which affords us the ability to move forward expeditiously.”
Initiated coverage of MGN with a Buy rating and $5.00 price target.
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