Vancouver, British Columbia -- (Marketwire - July 14, 2010) - United Mining Group, Inc. (the "Company" or "UMG"), (CNSX: UMG) announces that it is completing a new portal into the upper country of the Crescent Silver Mine and rehabilitating sections of the Hooper tunnel. The Crescent Mine has an NI 43-101 indicated silver resource of 6.1 million ounces silver (324,000 tons grading 18.7 opt silver) and additional inferred silver resources of 4.1 million ounces silver (211,000 tons grading 19.5 opt silver).
Portal Construction
To facilitate portal construction, the Company has purchased a 10.01 acre parcel of land upon which part of the Countess claim is located. UMG has secured a land disturbance permit from Shoshone County and has built the access road into the site, is excavating the overburden and stabilizing the hillside.
Equipment for the underground construction of the ramp is now mobilized to the site. The completed ramp is expected to provide access to the Alhambra Vein and the South Vein resource in the upper country of the Crescent property that was identified through an earlier drill program performed by SNS Silver.
The portal is expected to ramp through the upper country 800 feet to the Alhambra Vein, then turn and drive another 1400 feet to the South Vein. Projected completion time is approximately 4 months.
Exploration Drilling
The Company has also been rehabilitating sections of the Hooper tunnel with plans to extend the Hooper track drift an additional 1,100 feet to perform further exploratory drilling on the South Vein from the Hooper level. A second rehabilitation crew has been added to expedite the progress on rehabilitation of the Hooper Tunnel.
For a complete diagram of the Crescent Mine, please click:
www.unitedmininggroup.com
About United Mining Group
United Mining Group is a vertically integrated mining company with operations in Idaho, USA, combining both mining services and a significant interest in the Crescent Silver Mine earning $15.7 million revenue in 2009.
The Company has an option to acquire an 80% interest in the Crescent Silver Mine, located in the Silver Valley, Idaho, the second largest silver district in the world. The Crescent Mine has a NI 43-101 indicated silver resource of 6.1 million ounces silver (324,000 tons grading 18.7 opt silver) and additional inferred silver resources of 4.1 million ounces silver (211,000 tons grading 19.5 opt silver).
The Crescent Silver 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). The Company offers a full suite of mining services including contract mining, contracting/construction (including mine remediation), and fabrication and machine services. The Company owns its own custom welding and fabrication shop, allowing it to repair/rebuild its own equipment and supply outside customers. In 2009, Mining Services generated $15.7 million revenue and $3 million operating income.
UMG is committed to building a senior silver producing mining company based on aggressive exploration and development of the highly-prospective Crescent Mine and through additional acquisitions in the Silver Valley and other silver districts.
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.
On behalf of the Board of Directors of United Mining Group, Inc.
Greg Stewart
President, CEO and Director
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 may include, but not limited to, statements with respect to the Company's expectation to be in production within 12 months, future remediation contracts, the timing of activities and the estimated revenues and profitability generated from the existing remediation contracts. 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, among others, risks related to actual results of exploration activities and development of mineral properties, actual results of remediation activities regarding lower than expected revenues and profitability and potential early termination of existing remediation contracts, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, loss of key personnel, mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration or development activities or the completion of feasibility studies, risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, the ability to obtain financing when required, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's public 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 Canadian National Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
For more information, please contact
United Mining Group, Inc.
Jason Birmingham
778.331.2022
jason.birmingham@barongroupintl.com
or
United Mining Group, Inc.
Greg Stewart
208.682.9018
gstewart@unitedmininggroup.com
www.unitedmininggroup.com
