Mines Management Extends Gold, Silver Mineralization At La Estrella
Mines Management (MGN) announced results from initial drilling activities at the La Estrella gold-silver project in central Peru, in which the Company can earn a 75% interest from Estrella Gold Corp. The emerging silver company reported that eight new holes, totaling approximately 2,700 meters, were completed in August in a program designed to test the south-western extent of a large gold and silver mineralized zone, which remains open to the north, south, and west. Seven of the eight holes intersected gold and silver mineralization exceeding 100 meters in thickness.
Mines Management noted that prior drilling by predecessors on the property, totaling approximately 5,800 meters among 33 holes, intersected mineralization approximately 1,800 meters in length north to south by 300 meters wide east to west. La Estrella is in an area of established infrastructure, with roads and electric power. The Project lies within 30 kilometers of Minera Buenaventura`s historic Julcani Silver Mine, which opened in 1955 and operates today.
* The 2012 drilling program has extended the known mineralized zone by approximately 300 meters to the west over an extent of approximately 500 meters north to south
* The Company performed sufficient activities and expenditures to complete its earn-in obligations for the year and noted that it is pleased that results warrant additional exploration
*Based upon results of the drilling, the Company intends to plan an expansion of exploration activities
* The exploration will primarily seek to delineate the extent of La Estrella mineralization, define the orientation and extent of high grade silver veins and structures, and define a resource through additional drilling, metallurgical and geophysical studies
Glenn M. Dobbs, President and CEO of Mines Management:
“We are very encouraged by the initial drill results to see the potential for a large precious metals deposit at La Estrella. The combination of substantial zone thicknesses along with zones of higher grade mineralization make this deposit potentially very attractive, and warrant additional exploration.”
Buy rating and $5.00 price target on MGN