-- Posted Tuesday, 14 December 2010 | Digg This Article
| | Source: GoldSeek.com
Vancouver, B.C., December 14, 2010: United Mining Group, Inc. (TSX:UMG; Frankfurt:UM8; OTCQX:UMGZF, the "Company") is pleased to announce that it has completed its claims purchase agreement that increases its contiguous exploration land holdings by approximately 265%, from approximately 143 hectares (353 acres) to a new total of 379 hectares (973 acres) at the Company's Crescent Mine project in Idaho's prolific Silver Belt. UMG's land holdings are bounded on the east by the Sunshine Mine property and to the west by the Bunker Hill deposit. The land agreement and terms were originally announced on October 12, 2010.
The famous "Silver Valley", which is located in northern Idaho, is the second largest silver-producing district in the world, with recorded production in excess of 1 billion ounces of silver, the majority of which was mined from the Sunshine and Bunker Hill mines, which border UMG's significantly enhanced land position. With the increase in the price of precious metals, the district is undergoing renewed activity, and the exploration and discovery opportunities which still remain are now coming to be understood.
With this acquisition, UMG is now able to begin exploring what management considers the highest-potential yet amongst the most under-explored exploration ground in the district. A large and comprehensive exploration program is planned to augment the underground exploration now underway.
Despite their strategic location, and geological potential, relatively little historic exploration has been carried out on the newly-acquired lands. Approximately 4.5 kilometers of cross cuts and development drifts were historically constructed to follow silver mineralization which was discovered at surface. The degree of historic mining is not recorded although a 200 ton per day mill was constructed at one of the adits. The Company plans, in addition to a rigorous surface drilling program, to rehabilitate a portion of these adits to allow for underground drilling to depth during the coming year.
Dr. Lawrence Dick, Ph.D., P.Geo., company Director and head of UMG's Geological Advisory Committee, states: "with the acquisition of this strategic exploration landholding, UMG now controls what Management considers to be the most prospective exploration ground in the most historically-productive part of the famous Idaho Silver Belt, that is, the Bunker Hill-Crescent-Sunshine segment, where more than half of the 1 billion ounces of silver produced in the belt were mined. UMG has a very active exploration period ahead, with a large portion of the next year's budget targeted towards underground exploration at the past-producing Crescent mine where vast parts of the potential have never been drill tested. We also intend to explore the newly-acquired claims which are an extension of the Sunshine-Crescent geology, particularly the presence of the silver-hosting Alhambra and South fault zones, which cross the property, yet have been poorly explored historically".
For a visual depiction of UMG's current land holdings in the Silver Valley, the location of the Crescent Mine, and the relationship to the bounding, world-class deposits, please click on http://unitedmininggroup.com/graphics/LandClaims_Map_lg.jpg or go to the Company's web site at www.unitedmininggroup.com.
About United Mining Group
United Mining Group is a profitable, vertically integrated mining company with operations in Idaho, USA. The Company offers a full suite of mining services including contract mining to silver miners in the district. The Company owns its own custom welding and fabrication shop allowing it to repair/rebuild equipment for its own use and for outside mining companies.
The Company is currently earning, through development and operations, an 80% interest in the Crescent Silver Mine adjacent to the Sunshine Silver Mine in the Silver Valley. The Crescent Mine has historically produced 25 million ounces of silver at an average grade of 27.3 opt (SRK Consulting 43-101 report, March 1, 2010). UMG currently has an indicated resource of 6.1 million ounces silver (324,000 tons grading 18.7 opt silver) and additional inferred resources of 4.1 million ounces silver (211,000 tons grading 19.5 opt silver).
UMG is committed to building a senior silver-producing mining company based on aggressive exploration and development of the highly-prospective current land position at Crescent and through the acquisition of additional silver interests.
For more information about the Company, please visit: www.unitedmininggroup.com
In compliance with NI 43 101, Lawrence Dick, Ph.D., P.Geo., is the Qualified Person responsible for the accuracy of this news release.
"Charles Pitcher"
Charles Pitcher
Chief Executive Officer
FOR MORE INFORMATION, PLEASE CONTACT:
Greg Stewart
President & Chief Operating Officer
Tel: 208.682.9018
gstewart@unitedmininggroup.com
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. Forward looking statements in this press include that our property has the highest potential and is most productive amongst the unexplored areas in the region, that we will undertake a comprehensive exploration program, that we will rehabilitate adits to drill underground to depth, that , and that we can build a senior silver-producing mining company based on aggressive exploration and development of the highly-prospective current land position at Crescent and through the acquisition of additional silver interests. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: results of exploration activities and development of mineral properties, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the inability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
-- Posted Tuesday, 14 December 2010 | Digg This Article | Source: GoldSeek.com
