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Tuesday, January 30, 2007


"This is behaving like an underground river"

As we mentioned in November, some readers had questions about a water source for Metalline Mining (MMG) after an October press release indicated that, as part of the feasibility study, they needed to find sufficient water to supply the mine and concentrator operation. This was the biggest issue for those investors who thought it may be the only obstacle that could prevent the project from being economically feasible.

Today, Metalline Mining announced test results on the first hole they completed. This testing suggests they have hit a large source of water. They experienced little drawdown from the first pump after 24 hours of continuous pumping at the maximum rate possible, so they put in a bigger pump to pump water at a 55% higher rate and still had little drawdown and an almost instantaneous recovery of the water level to the static level when the pump was turned off. With the static water level around 350-500 feet below the surface and the wells going as much as 1200 feet deep, we believe there is ample water there for their operations. Previous testing on the water indicated that the "water is ideal for use in mining applications." The consulting hydrologist stated "this is behaving like an underground river." They also have several other borings nearby that have very good production potential if needed.

Despite the fears of many, it appears securing a water source will not be an issue for MMG's mining and concentrator operation, and continued water testing should confirm that conclusion.

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