Mines Management Reports Operating Results
In the second quarter of 2009, the Company: Completed the EIS public comment period June 29, 2009, with agencies currently compiling the data. Approved and adopted the Shareholders Rights Plan at the June 18, 2009 Annual Meeting of shareholders. Demobilized Small Mine Development, the adit rehabilitation contractor, on April 30, 2009 after installation and testing of the sumps for the water treatment system at the Montanore adit site. Maintained a strong cash and investment position at June 30, 2009, with $15.5 million of unrestricted cash, availability under its line of credit, and unrestricted certificates of deposit.
The net cash expenditures for the six months ended June 30, 2009 were $0.1 million for the purchase of equipment and completion of the water treatment plant and other site infrastructure and $4.4 million for operating activities. The Company believes that it has sufficient working capital to complete the rehabilitation of the Libby adit and commencement of delineation drilling. Given the current available funds of approximately $15.5 million on June 30, 2009, we will require approximately $10.0 million of external financing in 2010 to fund the final phases of the advanced exploration program and delineation drilling program and completion of a bankable feasibility study. The Company continues to investigate financing opportunities and the potential for equity or debt financing during the current year.
Libby operations in the second quarter of 2009 included continued operations on the Montanore site water treatment system and dewatering of the decline. After completion of the 7200 foot level sump and decanting system, Small Mine Development, the adit rehabilitation contractor, was demobilized April 30, 2009 as an expenditure conservation measure pending completion of the permitting process. To date, infrastructure placed in the decline includes a refuge chamber, mine power center and temporary pump station along with the previously installed sumps and pumping system at the 700 ft. location. The decline is now in a standby mode pending notification from the relevant governmental agencies regarding approval of the draft Environmental Impact Statement (EIS) and issuance of a Record of Decision.
Engineering for the nitrate removal addition to the water treatment system is complete with construction on hold pending receipt of the EIS and Record of Decision. Construction of the nitrate system is scheduled to start and be completed prior to beginning to drive the final section of the adit to reach the ore body and install drill stations. The current schedule is to begin construction of the concrete chambers in the early fall of 2009 or late April/early May of 2010 based on timing of receipt of the Record of Decision following completion of the final EIS.