Mines Management Inc (MGN)

[chmcnfunds]

Should be getting an update soon on the drilling by Mines Management of the Estrella Gold property in Peru:

http://www.minesmanagement.com/LaEstrellaDrillholes.php

MGN/CSRFF

[Montanore]

$1.50 was long term support. Definitely broken now.

http://stockcharts.com/h-sc/ui?s=MGN&p=D&yr=3&mn=0&dy=0&id=p27199042851

[Montanore]

It might be worth picking up a few shares if this gets under a buck.

[man alive]

Ok, next month is the Shareholders meeting. Does anyone have a suggestion about voting for or against stuff on the ballot?

[Montanore]

The $1.50 support area now looks like it might become resistance.

Can this go below a buck? Sure it can--if silver goes back to $25.

[dillermcg]

Wow, you called it on the $1.50...

[dillermcg]

That moment is rapidly approaching.... Might hold off for a new low

[Montanore]

I may be a buyer around $1.50.

Needless to say, most of the NIA people who bought on the pump are probably gone.

[Montanore]

Maybe so--they can't keep things going at the Montanore Belt without continuous share dilution--they do have a tremendous amount of copper and silver in the ground up there...but getting it out is very problematic. It is probably a lot more cost-effective to mine in Peru (which is also very rich in minerals).

[dillermcg]

Maybe the Peru venture is to produce capital to keep the Montana operation going? Guessing. Interesting, I will keep an eye on this. Thanks for your input.

[Montanore]

They have a lot of silver and copper in the rough, that's for sure. But there are, of course, a legion of problems involved in getting it out. It's in a very bucolic, pristine area here in Montana. There are still plenty of environmental hurdles and protests. There is always the money hurdle. It will cost a lot of money to build a mine. Drilling is expensive too and they've done plenty of that, but to pay for it they've been diluting and also selling shares to pay salaries. I don't know where they got the millions for the Peru thing. The company philosophy has been to keep debt levels low. Maybe that's changed now.

There was a pump here by the NIA a few months back. That explains the pop (along with silver bouncing up), but without continued or rising silver and copper prices, I expect this to go sideways at best.

[dillermcg]

Dang, Whats the scoop here Mont? Sure seems like a diamond in the rough...'


Expanding operations too

http://www.minesmanagement.com/news-releases/mmi_pr_1201.html

[Montanore]

Silver up $1.40 and MGN can't break $2. Sad.

[Montanore]

I haven't heard about the litigation. They do face obstacles to mining--and not just environmental objections and red tape. They face a lack of money. So far they have little debt, but that's because they've been diluting to pay salaries and expenses.

HOWEVER: They do have an estimated 230 million ounces of silver and nearly 2 billion pounds of copper in the ground. If they were mining today it would be ranked in the top 20 silver mines as far as production. And they already have the Noranda adit/tunnel and have done extensive drilling. The resources are there.

That amount of silver and the depressed economy could help press the issue to open a mine there. A lot of people in nearby Libby could use the work.

I've been there and it's in very beautiful, wild country. There cost per ounce would undoubtedly be higher than anywhere else because they'd have to work harder to keep it pristine.

[bearnbull]

Beware: Years Away From Breaking Ground...If Ever

The upbeat predictions this company puts out have little if any basis in reality. They face formidable obstacles about which they simply won't be honest. Environmental groups will challenge in court and that could well mean a ten year delay. They have kept a similar mine in the same area from breaking ground for longer than that. There is ongoing litigation with another company which accuses Mines Management of claim jumping. At issue is their access to the ore. The company is woefully undercapitalized. Mines Management is essentially a maze of hedge funds. MMI has never managed a mine. Three thumbs down!

[Montanore]

I don't see any news--Ihub always confuses MGN with other stocks.

[lightbeam]

News....

[Montanore]

MGN wants to see $2 again...JMHO.

[Montanore]

Buy under $2 again soon. JMHO...

[bigone]

Thank you.

[Montanore]

They won't be in production until they get fully permitted and funded. One of those years you listed seems reasonable, but production won't occur any time soon. On the plus side, they have massive amounts of silver and copper in the ground and more drilling is bound to show even more resources.

They may face a lot of environmental protests because the property is in a very beautiful, pristine area. On the other hand, there are a lot of people who would love to see it developed so more people can be put back to work. There are a lot of miners in Libby who would love to work there.

They also have little debt, but there's a reason for that. They've sold a lot of shares to pay the bills and salaries. Hence the seemingly 'low' share price today. It's almost doubled since the NIA has touted it and it remains very volatile.

[bigone]

We owned MGN a few years ago and are considering buying back in.
Does anyone know when the company estimates that they may be in actual production? 2013?, 2014?, 2015?

[Montanore]

So much for that....40 cents from the high.

Not like we haven't seen this before...

[Montanore]

Racing back down to Earth now...MGN usually sells off after every pop.

[Montanore]

Expect a violent up move in silver soon.

http://etfdailynews.com/2011/12/05/james-turk-expect-a-violent-move-higher-in-precious-metals-especially-silver-slv-gld-pslv-agq-zsl/

[Montanore]

It's an impressive move today...I'm surprised.

[Drainville]

http://www.barchart.com/opinions/stocks/MGN

plus NIA's pump

[Montanore]

Can't find any breaking news, but something must be up besides the share price.

[stlogic]

Nice $3.09

[Montanore]

It's going up nicely now--something must be up for it to be up this much on a down day for silver.

[User-65225]

Lookin great here for higher levels... with increasing volume supporting the trend

[stlogic]

Room to run back to $4.00 .. 2012 should be the break out year IMO.

[stlogic]

nice break out low float should run

[Montanore]

Yes...combined with the volatile price of silver too, of course.

Copper had a nice pop lately, too.

[KING RABBIT]

Is this stock so volatile because of NIA involvement? This seems like the logical reason.

[$King]

MGN @ 2.27

[Montanore]

Looks like I was right about this one...unfortunately. A lot of the NIA crowd probably got stopped out. MGN has a lot of silver and copper in the ground, but great hurdles remain before they can get it out of the ground.

Meanwhile, the management has a habit of selling shares to keep out of debt and pay salaries.

That said, I do see this as a buyout possibility by some major...sometime in 2012.

[Montanore]

Look for $2 soon.

Almost there.

[Montanore]

Looks like the NIA folks need to get stopped out of MGN before it can start up again.

Look for $2 soon.

[Montanore]

NIA profit takers should move in sometime this week. Get ready for the inevitable dip.

[Montanore]

"MGN is sitting on $21.98 million in cash and has no debt..."

And how did they get all this cash? Selling shares...dilution for cash position and salaries. They aren't mining, so they mine shares. Could it be a takeover candidate? Sure, but this mine is in a pristine location and there is a lot of opposition.

Here's a photo I took a while back...

[Montanore]

NIA reasons for picking MGN

NIA is pleased to announce its latest brand new stock suggestion Mines Management Inc. trading on the AMEX under the symbol MGN.

MGN is a U.S. based mineral company focused on the acquisition and exploration of silver dominant mineral deposits. MGN's primary focus is on the advancement of the Montanore silver-copper project located in northwestern Montana, with a goal to ultimately become a new mid-tier producer of precious and base metals.

MGN has 28.74 million shares outstanding and a market cap at $1.92 of $55.18 million. MGN is sitting on $21.98 million in cash and has no debt. After subtracting MGN's cash position from its market cap, MGN's actual business and property is being valued at only $33.2 million.

MGN's Montanore silver-copper project located in Montana has a resource estimate of about 230 million ounces of silver and approximately 2 billion pounds of copper. Based on MGN's enterprise value of only $33.2 million, MGN's silver resource base is currently being valued at less than $0.15 per ounce! To the best of our knowledge, MGN's silver resource base has the lowest valuation per ounce in the entire industry.

Silver prices have been starting to rally big once again over these past couple of days. Silver is now back above $35 per ounce and for MGN's estimated resource to be valued at less than $0.15 per ounce indicates to us that MGN has enormous upside potential.

If MGN is successful at eventually building a mine at the project, MGN expects the project to process 12,500 tons of ore per day and produce 8 million ounces of silver and 60 million pounds of copper annually!

MGN's project has excellent nearby infrastructure including a highway, railway, low cost power, and a large available supply of labor. It is located in one of the most prolific silver regions in the world, at the northern end of a trend extending south to the Coeur d'Alene Silver District, which has historically produced more than 1 billion ounces of silver.

Earlier this year, MGN raised $15.2 million in a private placement at $2.96875 per share. MGN is currently trading at a discount of 35% from where the company raised $15.2 million by offering 5,120,000 shares of its stock to the public.

NIA's suggestion of MGN is completely unbiased. NIA does NOT own a stake in MGN. NIA is NOT being compensated in any way for its suggestion of MGN.

NIA is not an investment advisor. This report is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This report is meant for informational and educational purposes only and does not provide investment advice.

[Montanore]

Did they list any reasons for the pick?

To be sure, MGN has plenty of silver and copper in the ground, but they still face stiff hurdles before they can extract it.

[stlogic]

Tight float could fly back to 4.00

RBY breaking out also

[User-65225]

NIA made MGN their new uncompensated stock pick 10 minutes before close... Possible gap and run Monday after the word spreads over the weekend...

Their email followers have been turning quiet mining plays into huge runners... and i bet many did not even have a chance to read the email within the last 10 minutes... hence my prediction that we'll see continuation Monday, as the next wave of buyers try to squeeze in.

Enjoy your weekend everyone

[stlogic]

Anyone home? This keeps hitting its's head in the channel. Break out above 1.90 and it could run back to the high. Production to begin in 2012?

[Montanore]

They don't have enough cash to develop the mind.

I meant MINE!

LOL

[Montanore]

Yeah, but management has had a habit of diluting in order to keep things running and keep their paychecks flowing. They don't have enough cash to develop the mind. It will require a buyout or private placement. And they will still face very strong environmental headwinds...a lot of people are adamantly against developing a mine in that pristine area.

[lightbeam]

Interesting share structure. Lots of good buys on mining stocks that are dirt cheap in this market. IMO

http://www.minesmanagement.com/stock-info.php

[Montanore]

Good buying opportunity yesterday--but then again...so many silver and gold stocks were oversold.

Mines Management Achieves Permitting Milestone for the Montanore Silver-Copper Project