VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/24/11 -- United Mining Group, Inc. (the 'Company') (TSX: UMG)(OTCQX: UMGZF)(FRANKFURT: UM8) announces that the Company's Mine Services Division has extended its agreement with U.S. Silver Corporation ('the Agreement'), to provide contract underground mining services at the Galena Mine located in Silver Valley Idaho, in the Coeur d'Alene Mining District. The total value of the contract is estimated at approximately US$ 6.0 million and extends the original contract by 18 months, through to August 2012.
The Agreement calls for UMG to provide the necessary manpower and oversight to perform contract mining for U.S. Silver Corporation, primarily at their Galena Mine, with a focus on expanding production from existing operations. The Galena mine ranks as the second largest primary silver mine in U.S. history, with 2010 production of approximately 2.3 million ounces of silver, 5.6 million pounds of lead and 1 million pounds of copper. As part of the normal course of business under its Mine Services Division, UMG actively pursues new opportunities to provide contract mining services on an ongoing basis.
ABOUT UNITED MINING GROUP
United Mining Group is a vertically integrated mining company with operations in Idaho, USA. The Company is currently earning, through development and operations, an 80% interest in the Crescent Silver Mine project in Idaho's prolific Silver Belt - directly between two of the world's historically largest silver producing properties, the Sunshine and Bunker Hill mines. 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). The Company also offers a full suite of mining services including contract mining and mine machine repair and fabrication services to silver miners in the district. 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 the Crescent Silver Mine project and through the acquisition of additional precious metals interests. The Company trades on the Toronto Stock Exchange under the symbol 'UMG'. For more information about the Company, please visit: www.unitedmininggroup.com.
ON BEHALF OF UNITED MINING GROUP, INC.
Charles Pitcher, Chief Executive Officer
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 release include that the contact with U.S. Silver is worth $6 million over the next 18 months, that we may obtain new mining service contracts, that we are building a senior silver-producing mining company, that we will have aggressive exploration and development of our current land position at Crescent, that our land is the highly-prospective for mining and that we will make acquisitions 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, our competitors providing cheaper or better mine services, 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.
Contacts:
United Mining Group, Inc.
Greg Stewart
Chief Operating Officer
208.682.9018
gstewart@unitedmininggroup.com
www.unitedmininggroup.com
