United Mining Group Inc TSX:UMG announced a $9 million mine development program for its Crescent Silver Mine in Idaho to hasten pre-production from the original estimates. Rather than proceed with the construction of the original shaft raise—at a cost of $7 million—UMG has decided to construct a secondary ramp, called the Wilkie Incline, at a cost of $5.9 million, which is expected to be completed by December 2011.
CEO Charles Pitcher commented, “As the company moves toward its goal of bringing the Crescent Silver Mine back into production it is also building its engineering, geological, mining and safety support teams. Our aggressive 2011 exploration program along with the construction of the Wilkie Incline will provide significant operational advantages both in terms of costs and scheduling. By shortening our pre-production mine development program by 3-5 months, the Wilkie Incline is expected to allow the company to commence initial production at the Crescent Silver Mine in the first quarter of 2012, at least one quarter earlier than originally anticipated.”
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by Ted Niles