10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2013

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER 001-32074

MINES MANAGEMENT, INC.

(Exact Name of Registrant as Specified in its Charter)

IDAHO	91-0538859
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

905 W. Riverside Avenue, Suite 311 Spokane, Washington	99201
(Address Of Principal Executive Offices)	(Zip Code)

(509) 838-6050

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  x Yes o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o No x

At November 14, 2013, 28,999,752 common shares, par value $0.001 per share, were issued and outstanding.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Information contained in or incorporated by reference into this Quarterly Report on Form 10-Q may contain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995.  The use of any of the words “development”, “anticipate”, “continues”, “estimate”, “expect”, “may”, “project”, “should”, “believe”, or similar expressions are intended to identify such statements.  Forward-looking statements included in this report relate to, among other things, comments regarding further exploration and evaluation of the Montanore Project, including drilling activities, feasibility determinations, , engineering and environmental studies, environmental, reclamation and permitting requirements and the process and timing and the costs associated with the foregoing; the process and timing associated with the Montanore Project permitting process, including the issuance of biological opinions, a final environmental impact statement and a record of decision; financing needs, including the financing required by mid 2014 to continue our business and to fund the final phases of the Montanore Project advanced exploration and delineation drilling program and a bankable feasibility study; planned expenditures and cash requirements for 2013 and 2014; planned exploration and evaluation of the Estrella property in Peru; efforts to reduce costs, including reducing manpower; and the search for potential exploration and development opportunities in the mining industry.; We believe the expectations reflected in those forward-looking statements are reasonable.  However, we cannot assure that the expectations will prove to be correct.  Certain cautionary statements are also included elsewhere in this report, including, without limitation, in conjunction with the forward-looking statements.  All forward-looking statements speak only as of the date made.  All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements.  Except as required by law, we undertake no obligation to update any forward-looking statements.  Factors that could cause actual results to differ materially from our expectations include, among others, those factors referenced in the “Risk Factors” section of this report and our Annual Report on Form 10-K for the year ended December 31, 2012 and such things as:

·the availability of experienced employees;

·uncertainties associated with developing new mines or mining operations;

·the absence of any history of production;

·the history of losses, which we expect to continue for the foreseeable future;

·uncertainties associated with acquiring new mining properties, including uncertainties regarding the availability of properties or companies to be acquired, the ability to negotiate acquisitions on acceptable terms or to otherwise accomplish such acquisitions, the ability to finance such acquisitions on acceptable terms, and the ability to manage acquired assets or to achieve the goals of the acquisition;

·the absence of proven or probable reserves, and uncertainty regarding whether reserves will be established at our Montanore Project;

·the speculative nature of exploration for mineral resources, including variations in ore grade and other characteristics affecting mining and mineral recoveries, which involves substantial expenditures and is frequently non-productive;

·financial market conditions and the availability of financing, or its availability on terms acceptable to us to continue our business, complete the underground evaluation program,  to develop the Montanore Project and to conduct additional exploration at the Estrella project in Peru;

·the availability, terms, conditions, costs, timing of, or delays in receiving required governmental permits and approvals;

·the competitive nature of the mining industry;

·risks inherent in the mining process, including geological, technical, permitting, mining and processing problems;

·changes in geological information and the interpretation thereof;

·worldwide economic and political events affecting the supply of and demand for silver and copper and volatility in the market price for silver and copper;

·ongoing reclamation obligations on the Montanore Project properties;

·significant government regulation of mining activities;

·uncertainty regarding changes in mining or environmental laws that could increase costs and impair our ability to develop our properties;

·environmental risks;

·uncertainty regarding title to some of our properties;

·the potential for a business combination transaction pursuant to which a third party may attempt to acquire us, which may divert management attention and Company resources;

·the volatility of the market price of our common stock;

·the potential depressive effect on the market price of our common stock upon issuances of additional common stock;

·future dilution of shareholders by the exercise of options, and the depressive effect on the stock price of the existence of a significant number of outstanding options;

·obligations under a long-term contract to sell our silver production; and

·other factors, many of which are beyond our control.

MINES MANAGEMENT, INC.

FORM 10-Q

QUARTER ENDED September 30, 2013

INDEX

		Page
PART I — FINANCIAL INFORMATION
ITEM 1.	Financial Statements (unaudited)	i
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	12
ITEM 4.	Controls and Procedures	12
PART II — OTHER INFORMATION
ITEM 1.	Legal Proceedings	13
ITEM 1A.	Risk Factors	13
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	13
ITEM 3.	Defaults Upon Senior Securities	13
ITEM 4.	Mine Safety Disclosures	13
ITEM 5.	Other Information	13
ITEM 6.	Exhibits	14
SIGNATURES		15

PART I— FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS

Contents

	Page
FINANCIAL STATEMENTS (unaudited):
Condensed consolidated balance sheets	1
Condensed consolidated statements of operations	2
Condensed consolidated statements of comprehensive loss	3
Condensed consolidated statements of cash flows	4
Notes to condensed consolidated financial statements	5-9

i

Mines Management, Inc. and Subsidiaries

(An Exploration Stage Company)

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	September 30,2013			December 31,2012
Assets
CURRENT ASSETS:
Cash and cash equivalents	$	5,438,013		$	10,246,073
Interest receivable	4,310			7,815
Prepaid expenses and deposits	281,064			250,892
Certificates of deposit	1,559,361			1,559,361
Total current assets	7,282,748			12,064,141
PROPERTY AND EQUIPMENT:
Buildings and leasehold improvements	836,454			836,454
Equipment	6,450,089			6,450,089
Office equipment	344,939			344,939
	7,631,482			7,631,482
Less accumulated depreciation	6,093,078			5,392,684
	1,538,404			2,238,798
OTHER ASSETS:
Available-for-sale securities	17,715			19,633
Reclamation deposits	1,191,182			1,184,966
	1,208,897			1,204,599
	$	10,030,049		$	15,507,538
Liabilities and Stockholders’ Equity
CURRENT LIABILITIES:
Accounts payable	$	438,122		$	495,326
Payroll and payroll taxes payable	22,605			17,874
Total current liabilities	460,727			513,200
LONG-TERM LIABILITIES:
Asset retirement obligation	473,672			456,823
Total liabilities	934,399			970,023
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Preferred shares — no par value, 10,000,000 shares authorized; -0- shares issued and outstanding	—			—
Common shares — $0.001 par value, 100,000,000 shares authorized; 28,999,752 shares issued and outstanding	29,000			29,000
Additional paid-in capital	87,132,799			86,805,769
Accumulated deficit	(1,117,306		)	(1,117,306		)
Deficit accumulated during the exploration stage	(76,955,393		)	(71,188,416		)
Accumulated other comprehensive income	6,550			8,468
Total stockholders’ equity	9,095,650			14,537,515
	$	10,030,049		$	15,507,538

See accompanying notes to condensed consolidated financial statements.

1

Mines Management, Inc. and Subsidiaries
(An Exploration Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,						From Inception of Exploration Stage August 12, 2002 ThroughSeptember 30,
	2013			2012			2013			2012			2013
REVENUE:
Royalties	$	9,049		$	6,527		$	24,294		$	27,108		$	175,598
OPERATING EXPENSES:
General and administrative	561,647			839,656			2,295,501			2,577,430			35,236,758
Technical services and exploration	616,415			1,384,087			2,037,329			3,005,134			32,841,814
Depreciation	232,746			242,469			700,394			733,857			6,125,131
Legal, accounting, and consulting	259,540			130,507			565,425			352,908			5,229,964
Fees, filing, and licenses	128,552			122,390			211,794			176,306			2,957,123
Impairment of mineral properties	—			—			—			—			504,492
Total operating expenses	1,798,900			2,719,109			5,810,443			6,845,635			82,895,282
LOSS FROM OPERATIONS	(1,789,851		)	(2,712,582		)	(5,786,149		)	(6,818,527		)	(82,719,684		)
OTHER INCOME:
Gain from warrant derivatives	—			—			—			357,977			476,381
Gain on sale of available-for-sale securities	—			—			—			—			2,005,904
Interest income, net	5,495			13,127			19,172			47,741			3,282,006
	5,495			13,127			19,172			405,718			5,764,291
NET LOSS	$	(1,784,356	)	$	(2,699,455	)	$	(5,766,977	)	$	(6,412,809	)	$	(76,955,393	)
NET LOSS PER SHARE (basic and diluted)	$	(0.06	)	$	(0.09	)	$	(0.20	)	$	(0.22	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (basic and diluted)	28,999,752			28,995,839			28,999,752			28,928,315

See accompanying notes to condensed consolidated financial statements.

2

Mines Management, Inc. and Subsidiaries

(An Exploration Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,						From Inception of Exploration StageAugust 12, 2002Through
	2013			2012			2013			2012			September 30, 2013
Net Loss	$	(1,784,356	)	$	(2,699,455	)	$	(5,766,977	)	$	(6,412,809	)	$	(76,955,393	)
Unrealized holding gains (losses) arising during the period	(3,703		)	8,081			(1,918		)	9,986			2,012,454
Less reclassification adjustment for realized gains included in net income, net of income tax of $0	—			—			—			—			(2,005,904		)
COMPREHENSIVE LOSS	$	(1,788,059	)	$	(2,691,374	)	$	(5,768,895	)	$	(6,402,823	)	$	(76,948,843	)

See accompanying notes to condensed consolidated financial statements.

3

 Mines Management, Inc. and Subsidiaries

(An Exploration Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months EndedSeptember 30,						From Inception of Exploration Stage August 12, 2002 Through September 30,
	2013			2012			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(5,766,977	)	$	(6,412,809	)	$	(76,955,393	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	327,030			306,230			11,232,929
Stock received for services	—			—			(11,165		)
Depreciation	700,394			733,857			6,125,131
Initial measurement of asset retirement obligation	—			—			344,187
Accretion of asset retirement obligation	16,849			16,110			129,485
Gain on sale of available-for-sale securities	—			—			(2,005,904		)
Gain from warrant derivatives	—			(357,977		)	(476,381		)
Impairment of mineral properties	—			—			504,492
Changes in assets and liabilities:
Interest receivable	3,505			8,625			(4,310		)
Prepaid expenses and deposits	(30,172		)	(68,188		)	(341,475		)
Accounts payable	(57,204		)	127,721			437,958
Payroll and payroll taxes payable	4,731			22,426			19,425
Net cash used in operating activities	(4,801,844		)	(5,624,005		)	(61,001,021		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	—			(32,853		)	(7,697,121		)
Proceeds from disposition of property and equipment	—			—			35,423
Proceeds (purchase) of certificates of deposit	(6,216		)	51,880			(2,689,631		)
Net proceeds from sale of available-for-sale securities	—			—			2,005,904
Increase in mineral properties	—			—			(144,312		)
Net cash provided by (used in) investing activities	(6,216		)	19,027			(8,489,737		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from sale of common stock	—			275,400			74,881,436
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(4,808,060		)	(5,329,578		)	5,390,678
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	10,246,073			17,121,800			47,335
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	5,438,013		$	11,792,222		$	5,438,013
SUPPLEMENTAL INFORMATION:
Interest paid	$	—		$	—		$	65,768
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES:
Unrealized gains on available-for-sale securities	$	1,918		$	9,986		$	6,550

See accompanying notes to condensed consolidated financial statements.

4

NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Organization:

Mines Management, Inc. (the Company) is an Idaho corporation incorporated in 1947.  The Company acquires, explores, and develops mineral properties in North and South America.

Summary of Significant Accounting Policies:

These unaudited interim financial statements have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, as well as the instructions to Form 10-Q.  Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting solely of normal recurring adjustments) considered necessary for a fair presentation of the interim financial statements have been included.

The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s condensed consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company’s consolidated financial position and results of operations. Operating results for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2013.

For further information, refer to the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

(a)Exploration Stage Enterprise

Since the Company is in the exploration stage of operation, the Company’s financial statements are prepared in accordance with the provisions of Accounting Standards Codification (“ASC”) 915, Development Stage Enterprises, as it devotes substantially all of its efforts to acquiring and exploring mining interests that management believes should eventually provide sufficient net profits to sustain the Company’s existence.  Until such interests are engaged in commercial production, the Company will continue to prepare its consolidated financial statements and related disclosures in accordance with this standard.

(b)Mining properties, exploration and development costs

All exploration expenditures are expensed as incurred.  Significant property acquisition payments for active exploration properties are capitalized, including payments to acquire mineral rights.  Once a feasibility study has been completed, approved by management, and a decision is made to put the ore body into production, expenditures to develop new mines, to define further mineralization in existing ore bodies, and to expand the capacity of operating mines are capitalized and amortized on the units of production basis over proven and probable reserves.  The Company charges to operations the allocable portion of capitalized costs attributable to properties sold.  Capitalized costs are allocated to properties sold based on the proportion of claims sold to the claims remaining within the project area.

(c)Fair value measurements

The Company discloses the inputs used to develop the fair value measurements for the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as well as the level within the fair value hierarchy in which the fair value measurements in their entirety fall.  The three levels of the fair value hierarchy are as follows:

Level 1:  Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.

Level 2:  Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in active markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data.

5

Level 3:  Unobservable inputs due to the fact that there is little or no market activity.

(d)Stock compensation

The Company measures and records the costs of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award, recognized over the period during which an employee is required to provide services in exchange for such award.  Compensation cost is recognized for awards granted and for awards modified, repurchased or cancelled.

(e)Net loss per share

Basic earnings or loss per share is computed on the basis of the weighted average number of shares outstanding during the period.  Diluted earnings or loss per share is calculated on the basis of the weighted average number of shares outstanding during the period plus the effect of potential dilutive shares during the period.  Potential dilutive shares include outstanding stock options and warrants.  For periods in which a net loss is reported, potential dilutive shares are excluded because they are antidilutive.  Therefore, basic loss per share is the same as diluted loss per share for the periods ended September 30, 2013 and 2012.

(f)Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board issued guidance related to items reclassified from accumulated other comprehensive income. The new standard requires either in a single note or parenthetically on the face of the financial statements: (i) the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its sources and (ii) the income statement line items affected by the reclassification. The Company adopted the provisions of this guidance effective January 1, 2013. This guidance did not have a significant impact on the Company’s consolidated financial position, results of operations or cash flows.

(g)Subsequent events

The Company evaluated events and transactions subsequent to the balance sheet date of September 30, 2013 for potential recognition or disclosure in the condensed consolidated financial statements.

NOTE 2 — CERTIFICATES OF DEPOSIT:

The Company owns two certificates of deposit for a total of $1,559,361.  These investments mature in February 2014 and bear interest at the rate of 0.35%.

The Company also has a certificate of deposit pledged as security for a Letter of Credit to the Montana Department of Environmental Quality as a reclamation guarantee for the Montanore expansion evaluation program.  This certificate matures on January 3, 2014, bears interest at the rate of 0.45% and renews automatically each year.  This certificate of deposit ($1,130,271 and $1,124,055 as of September 30, 2013 and December 31, 2012, respectively) is included with reclamation deposits on the Condensed Consolidated Balance Sheets.

NOTE 3 — AVAILABLE-FOR-SALE SECURITIES:

Available-for-sale securities are comprised of common stocks which have been valued using quoted market prices in active markets.  The following table summarizes the Company’s available-for-sale securities:

	September 30,2013		December 31, 2012
Cost	$	11,165	$	11,165
Unrealized Gains	6,550		8,468
Fair Market Value	$	17,715	$	19,633

6

NOTE 4 — FAIR VALUE MEASUREMENTS:

The following table summarizes the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013, and the fair value calculation input hierarchy level determined to apply to each asset and liability category. Quoted market prices were used to determine the fair value of available-for-sale securities. See note 5 for further discussion on the fair value measurement technique used to value the warrant derivatives. The Company has no financial assets or liabilities that are measured at fair value on a nonrecurring basis.

	September 30,2013		December 31, 2012		Input HierarchyLevel
Assets:
Available-for-sale securities	$	17,715	$	19,633	Level 1
Liabilities:
Asset retirement obligation	$	473,672	$	456,823	Level 3

The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value during the nine months ended September 30, 2013 and 2012:

	Asset Retirement Obligation
	2013		2012
Balance January 1	$	456,823	$	435,171
Accretion expense	5,488		5,286
Balance March 31	462,311		440,457
Accretion expense	5,615		5,350
Balance June 30	467,926		445,807
Accretion expense	5,746		5,474
Balance September 30	$	473,672	$	451,281

NOTE 5 — WARRANT DERIVATIVES:

The Company had common share purchase warrants with exercise price reset features which qualified for treatment as a derivative liability.  These warrants expired on April 20, 2012.  The warrants did not qualify for hedge accounting and, as such, all changes in the fair value of the warrants were recognized in earnings until they expired.  The Company reported no gains or losses from the change in fair value of these warrants in the Condensed Consolidated Statements of Operations for the three months ended September 30, 2013 and 2012.  Gains of $-0- and $357,977 were recorded for the nine months ended September 30, 2013 and 2012, respectively.

NOTE 6 — CONCENTRATION OF CREDIT RISK:

The Company maintains most of its cash and cash equivalents in one financial institution.  Balances are insured by the Federal Deposit Insurance Corporation up to $250,000.  The Company’s total uninsured bank deposit balance totaled approximately $7,950,000 as of September 30, 2013.  To date, the Company has not experienced a material loss or lack of access to its invested cash or cash equivalents; however, no assurance can be provided that access to the Company’s invested cash and cash equivalents will not be impacted by adverse conditions in the financial markets.

7

NOTE 7 — STOCKHOLDERS’ EQUITY:

Common Shares:

For a description of the public offerings that occurred in 2011 and 2007 and the sales of common stock during 2007 and 2005, refer to the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  The warrants associated with the public offering completed in April 2007 expired on April 20, 2012.  No warrants related to this offering were exercised before they expired.  The warrants associated with the sale of stock in October 2005 also expired on April 20, 2012.  Cumulative warrants exercised relating to this issue were 269,620 for each of the periods ended September 30, 2013 and December 31, 2012.  No warrants were exercised during the nine months ended September 30, 2013 and 2012.

Preferred Shares:

The Company has authorized 10,000,000 preferred shares, no par value.  Through September 30, 2013, the Company had not issued any preferred shares.

NOTE 8 — STOCK OPTIONS:

There has been no change to the Company’s 2003 and 2007 Stock Option Plans during 2013, other than the items summarized below.  For a description of these Stock Option Plans, refer to the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The Board of Directors authorized the Company to establish the 2012 Equity Incentive Plan (“2012 Plan”) which was approved by the shareholders in June 2012.  The Company may grant options to purchase up to 3,000,000 common shares under the 2012 Plan.  The common shares subject to the 2012 Plan may be either authorized and unissued shares or reacquired shares, bought on the market or otherwise, at the discretion of the Board.  The 2012 Plan provides for the issuance of incentive stock options to employees and nonqualified stock options to directors, employees and consultants of the Company.  No participant is eligible to be granted more than 200,000 common shares during any calendar year.  The option exercise price may not be less than 100% of fair market value per share on the date of grant and the options are exercisable within ten years from the date of grant of the option.  The vesting schedule of the options is at the discretion of the Board of Directors.

A summary of the option activity under the Company’s Stock Option Plans as of September 30, 2013, and changes during the period then ended, is presented below:

	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2013	3,622,000		$	1.81
Issued	520,000		$	1.05
Outstanding at March 31, 2013	4,142,000		$	1.71
Expired	(200,000	)	$	0.99
Outstanding at June 30, 2013	3,942,000		$	1.75
Issued	910,000		$	0.57
Expired	(110,000	)	$	1.36
Outstanding at September 30, 2013	4,742,000		$	1.53	3.08	—
Exercisable at September 30, 2013	3,832,000		$	1.76	2.62	—

The fair value for each option award is estimated at the date of grant using the Black-Scholes option-pricing model using the assumptions noted in the following table. Volatility for the periods presented is based on the historical volatility of the Company’s common shares over the expected life of the option. The risk-free rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The Company does not foresee the payment of dividends in the near term.

8

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2013			2012			2013			2012
Weighted average risk-free interest rate	0.59		%	0.30		%	0.54		%	0.30		%
Weighted average volatility	71.52		%	72.33		%	70.56		%	72.33		%
Expected dividend yield	—			—			—			—
Weighted average expected life (in years)	3.0			3.0			3.0			3.0
Weighted average grant-date fair value	$	0.27		$	0.56		$	0.38		$	0.56

During the nine months ended September 30, 2013 there were no stock options exercised.  During the three months ended September 30, 2012, there were 60,000 stock options exercised with a weighted average price of $1.29 and a total intrinsic value of $2,400.  During the nine months ended September 30, 2012, there were 265,000 stock options exercised with a weighted average exercise price of $1.06 and a total intrinsic value of $212,522.

A summary of the status of the Company’s nonvested options as of September 30, 2013, and changes during the period then ended, is presented below:

	Number of Options	Weighted- Average Grant-Date Fair Value
Nonvested at January 1, March 31, and June 30, 2013	—	—
Granted	910,000	$	0.27
Nonvested at September 30, 2013	910,000	$	0.27

As of September 30, 2013, there was $168,270 of unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plans.  The cost is expected to be recognized over a weighted-average period of less than one year.

Total compensation costs recognized for stock-based employee compensation awards was $77,430 and $255,360 for the three months ended September 30, 2013 and 2012.  Total compensation costs recognized for stock-based employee compensation awards was $327,030 and $306,230 for the nine months ended September 30, 2013 and 2012, respectively.  These costs were included in general and administrative expenses and technical services on the Condensed Consolidated Statements of Operations.  Cash received from options exercised under all share-based payment arrangements during the nine months ended September 30, 2013 and 2012 was $-0- and $275,400, respectively.

NOTE 9 — COMMITMENTS:

The Company entered into an Exploration Earn-In Agreement with Estrella Gold Corp. on April 5, 2012, pursuant to which the Company could acquire 75% of the Estrella gold and silver exploration property located in central Peru by expending $5,000,000 on exploration activities.  Under the terms of the agreement, the Company is required to make annual cash payments to Estrella of $100,000 prior to the end of the first agreement year ending on February 28, 2013, and $200,000 prior to the end of each subsequent agreement year until the earn-in has been completed.  The Company is also required to expend a minimum of $500,000 in exploration and development expenditures in each of the first and second agreement years.  The Company may terminate this agreement at any time during the earn-in period; however, a minimum of $350,000 in exploration and development expenses was required during the first year of the agreement regardless of whether or not the agreement was terminated.  The Company met the first year’s exploration and development expenditure requirements during 2012.  During February 2013, the Company made the required $100,000 cash payment prior to the end of the first agreement year and continued the Exploration Earn-In Agreement into the second year.

9

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2012, as well as with the financial statements and related notes and the other information appearing elsewhere in this report.  As used in this report, unless the context otherwise indicates, references to “we,” “our,” the “Company” and “us” refer to Mines Management, Inc. and its subsidiaries collectively.

We are an exploration stage company with a large silver-copper project, the Montanore Project, located in northwestern Montana.  The Montanore Project continues to be the Company’s main focus.  During 2013, the Company has continued to plan for the advanced exploration and delineation drilling program at the Montanore Project, principally through the pursuit of federal and state agency permitting approvals.

Overview Third Quarter 2013

·The Biological Consultation between the U.S. Fish and Wildlife Service (“USFWS”) and the U.S. Forest Service (“USFS”) continued during the third quarter and resulted in the completion of an internal working draft of the Biological Opinion (“BO”) for aquatics and terrestrial species.

·The 404 Permit to be issued by the U.S. Army Corps of Engineers (“USACE”) advanced with a detailed mitigation plan sent to the U.S. Environmental Protection Agency “EPA”, USFS, and Montana Dept. of Environmental Quality (“MDEQ”) for review.  Comments on the mitigation plan were received during the third quarter and supplemental information and design details are being prepared to address the comments.

·The Final Environmental Impact Statement (“EIS”) is advancing with numerous sections already complete in draft form.  The agency contractor responsible for writing the Final EIS, has provided the agencies with a draft and comments are being incorporated into the final version.

Current Activities

Montanore Project:

Montanore Permitting.  Approval by regulatory agencies will be required before the Montanore Project can proceed with further exploration and project development.  The agencies that are involved with the major permits include the USFS, MDEQ, and USACE.  The permitting process requires completion of the Final EIS before a Record of Decision can be issued by the USFS and MDEQ.  The Final EIS describes various elements of the project, provides analysis of impacts, includes public input, and discloses aspects of the proposed project that were considered by the agencies.  Progress continues on the Final EIS by the agencies.  The EIS contractor has provided a completeness update on the various sections and chapters of the Final EIS.  Their assessment shows the document is nearing completion including agency review and edits as required.

Part of the review requires consultation between the USFS and the USFWS under the Endangered Species Act.  The process required the USFS to prepare and submit biological assessments (“BA”) for terrestrial and aquatic wildlife to the USFWS, who in turn, through a consultation process, review the documents and develop a BO which includes mitigation requirements designed to offset the project’s impact to wildlife.  The USFWS has completed internal working drafts of the Biological Opinions.  The next step in the process is for the Solicitor’s Office and the USFS to review the draft Biological Opinion.  Once this is completed, the USFWS will issue a final Biological Opinion.

10

Another required permit is the 404 permit issued by the USACE under the Clean Water Act.  This permit is required when waters of the U.S. are impacted by a proposed action, in this case by the project tailings impoundment.  In 2012, the USACE issued a preliminary jurisdictional determination which is a critical step towards a decision to issue a 404 permit.  The Company submitted a detailed wetlands mitigation plan in the second quarter 2013.  The USACE sent the plan to the EPA, USFS, and MDEQ for review and issued comments on the plan during the third quarter of 2013.  Supplemental information and design details are being prepared to address these comments.  The 404 permitting process is operating concurrently with the Final EIS process, but is not dependent on it.

MDEQ is working on the final language for the Non-Degradation review required for new projects.  This process will be completed concurrently with the Final EIS.

The Company continues to work on related environmental regulatory processes.  In 2012, the Company initiated certain monitoring and data collection requirements that were included in the Supplemental Draft EIS and must be completed prior to initiating certain exploration and development activities.  The Company continued to collect environmental baseline data during the second and third quarters 2013 as part of the pre-mining activity monitoring requirements.

Montanore Operations.  During the third quarter of 2013, the Company continued to maintain the Libby adit site on a care and maintenance basis in preparation for evaluation activities and adit rehabilitation expected to resume when the Record of Decision is received.  Activities include filtration of water discharged from the adit through the water treatment facility and maintenance of the water level inside the adit.  Technical support and assistance were provided by Company personnel for ongoing permitting and environmental efforts. Gathering of environmental data and reporting to state and federal agencies as part of the permitting process is ongoing.

La Estrella Project:

Permitting. The Company completed replies and explanations in response to two sets of comments and questions from the Environmental Office of the Peruvian Ministry of Energy and Mines.  A Favorable Technical Opinion is currently pending, and is expected to be provided to the Company be during the fourth quarter 2013.  This Favorable Technical Opinion in conjunction with the Water Use Permit obtained by the Company in the second quarter would be the basis for continued exploration efforts to advance the Estrella Gold Project.

Community Relations.  During the third quarter, representatives of the Company visited communities involved in the Estrella Gold Project and completed certain funding obligations under the Formal Community Agreements.  The Company continues to support community activities and relations with the community remain welcoming.

Exploration.  No geological or analytical work was performed on the Estrella concessions during the third quarter.  The Company continued to review other properties in the vicinity of the Estrella project during the third quarter.

Financial and Operating Results

The Company continues to expense all of its expenditures when incurred, with the exception of equipment and buildings which are capitalized.  The Company has no revenues from mining operations.  Financial results of operations include primarily general and administrative expenses, permitting, project advancement and engineering expenses.

Quarter Ended September 30, 2013

The Company reported a net loss of $1.8 million for the quarter ended September 30, 2013 compared to a net loss of $2.7 million for the quarter ended September 30, 2012.  The decrease in the net loss is primarily attributable to the following items:  (1) a $0.3 million decrease in general and administrative expenses including a $0.1 million decrease in compensation costs due to fewer employees in 2013 than 2012, and a $0.2 million reduction in stock-based compensation during the third quarter 2013, (2) a $0.8 million decrease in technical services which consists of a $0.7 million reduction of costs associated with the exploration of the Estrella Project, and a $0.1 million reduction in technical expenditures associated with the Montanore project resulting from repairs and rental expenditures

11

during 2012 which did not occur during 2013, and (3) a $0.1 million increase in legal, accounting, and consulting fees primarily associated with a litigation matter.  See Part II, Item 1.

Nine Months Ended September 30, 2013

The Company reported a net loss of $5.8 million for the nine months ended September 30, 2013 compared to a net loss of $6.4 million for the nine months ended September 30, 2012.  The $0.6 million decrease in net loss includes the following items:  (1) a $0.3 million decrease in general and administrative expenses including $0.1 million decrease in compensation costs as a result of having fewer employees than in 2012, and a $0.2 million reduction in promotional and consulting costs (2) a $0.9 million reduction in technical services which consists of a $0.8 million decrease in Estrella Project exploration costs, and a $0.1 million decrease in costs associated with permitting and maintenance of the Montanore project, (3) an increase of $0.2 million in legal, accounting, and consulting fees primarily associated with a litigation matter as described in Part II, Item 1,and (4) a decrease of $0.4 million in the net gain on fair market value of warrant derivatives which expired in April of 2012.

Liquidity

During the nine months ended September 30, 2013, the net cash used for operating activities was approximately $4.8 million, which is $0.8 million less than the same period during the prior year.  This reduced our cash and cash equivalents and certificates of deposit from $11.8 million at December 31, 2012 to approximately $7.0 million at September 30, 2013.  We have continued to limit activity levels, including capital expenditures, until the timing for the receipt of the Record of Decision for the Montanore Project becomes clearer.

We anticipate expenditures of approximately $1.5 million for the final three months of 2013, which we expect to consist of general and administrative expenses, permitting, engineering, and geologic studies for the permitting of the Montanore Project.  We expect to fund these expenditures from cash on hand.  Anticipated expenditures for 2014 are not expected to vary significantly from 2013 unless the Company decides to continue exploration at the La Estrella Project in 2014.  We expect to require external financing before mid 2014 in order to continue our business. We expect that the timing and amount of additional external financing will be affected by the anticipated timing of the Record of Decision, the planned drilling program for Montanore and by exploration results and additional exploration plans, if any, for the La Estrella project.  There can be no assurance that external financing will be available on acceptable terms or at all.

Off-Balance Sheet Arrangements

As of September 30, 2013, we had no existing off-balance sheet arrangements (as defined under SEC rules) that have, or are reasonably likely to have, a material current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The majority of our cash balances are held in U.S. dollars and our long term investment certificates of deposit are denominated in U.S. dollars in local and national banking institutions.  We manage the timing of cash required for review of the permitting and engineering of the Montanore Project and for general corporate purposes utilizing our money market account, and we invest funds not immediately required in certificates of deposit with varying maturities and fixed early retirement costs of three months interest.  Our policy is to invest only in government securities rated “investment grade” or better.

The market prices of base and precious metals such as silver and copper fluctuate widely and are affected by numerous factors beyond the control of any mining company.  These factors include expectations with regard to the rate of inflation, the exchange rates of the U.S. dollar and other currencies, interest rates, global or regional political, economic or banking crises, and a number of other factors.  If the market price of silver or copper should decrease, the value of the Company’s Montanore Project could decline and the Company might not be able to recover its investment in that project.  Any determination to develop or construct a mine would be made long before the first revenues from production would be received.  Price fluctuations between the time that such decisions are made and the commencement of production could affect the economics of the mine.

ITEM 4.CONTROLS AND PROCEDURES

Our management, with the participation of the Company’s Chief Executive Officer and the Company’s Controller and Principal Financial Officer, has evaluated the Company’s disclosure controls and procedures as of September 30, 2013.  Based upon this evaluation, the Chief Executive Officer and Principal Financial Officer concluded that the Company’s disclosure controls and procedures are designed and were effective as of September 30, 2013 to give reasonable assurances that the information required to be disclosed in the reports that the Company’s files or submits under the Securities Exchange Act of 1934, as amended, is recorded,

12

processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is also accumulated and communicated to the Company’s management, including its Chief Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There has been no change in our internal control over financial reporting during the quarter ended September 30, 2013 that has materially affected, or that is reasonably likely to materially affect, our internal control over financial reporting.

PART II— OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

In September 2007, the Company filed a declaratory judgment action, Mines Management, Inc., Newhi, Inc. and Montanore Minerals Corp. v. Tracie Fus et al., Cause No. DV 07-248 in Montana Nineteenth Judicial District Court, Lincoln County.  In this action we sought a Court judgment that the unpatented mining claims of certain defendants allegedly located above portions of our adit and overlapping certain of our patented mining claims are invalid.  The defendants asserted trespass claims against us relating to our use of certain of our mining claims and the adit.  The parties participated in a mediation in 2009 which resulted in a settlement with all but one of the ten defendants.  Subsequently, however, two of the nine defendants that were part of the settlement claimed that a settlement had not been reached.  In mid-March 2013 the Court issued an order on pending motions (i) confirming the settlement with seven of the ten defendants, (ii) stating that one of the defendants is entitled to an injunction from trespassing on certain mining claims; and (iii) stating that the mining claims of another defendant are valid and superior.  The mining claim that the Court determined was valid overlaps portions of the adit, which could affect our ability to use the adit.  The claims with respect to which injunctive relief from trespass applies appear not to overlap the adit.

We have appealed to the Montana Supreme Court, Case No DA 13-0240, certain portions of the order.  The appeal remains pending.  We also filed on June 28, 2013 a condemnation action, Montanore Minerals Corp. v. Easements and Rights of Way under through and across those certain unpatented lode mining claims et al., Cause No. CV-00133-DLC, in the United States District Court for the District of Montana, Missoula Division.  In this action we seek to acquire necessary easements and rights of way for the Montanore Project including for use of the adit and the construction and use of other underground tunnels and related equipment that are contemplated by the draft environment impact statement for the Montanore Project and other draft permits.  The defendants include the defendant in the case referenced in the preceding paragraph whose claim was determined to be valid and overlaps the existing tunnel.  A response to the condemnation action has been filed; which remains pending.

ITEM 1A.RISK FACTORS

None.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.MINE SAFETY DISCLOSURES

None.

ITEM 5.OTHER INFORMATION

None.

13

ITEM 6.EXHIBITS

Exhibit No.	Title of Exhibit
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act
31.2	Certification of Controller and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C., 1350 (Section 906 of the Sarbanes-Oxley Act)
32.2	Certification of Controller and Principal Financial Officer pursuant to 18 U.S.C., 1350 (Section 906 of the Sarbanes-Oxley Act)
101	The following financial information from Mines Management Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at September 30, 2013 and December 31, 2012, (ii) Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2013 and September 30, 2012, and from Inception of Exploration Stage through September 30, 2013, (iii) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2013 and September 30, 2012, and from Inception of Exploration Stage through September 30, 2013 and (iv) the Notes to Condensed Consolidated Financial Statements. Pursuant to rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 are deemed not filed or part of any registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

14

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	MINES MANAGEMENT, INC.
Date: November 14, 2013	By:	/s/ Glenn M. Dobbs
		Glenn M. Dobbs
		Chief Executive Officer
Date: November 14, 2013	By:	/s/ Nicole Altenburg
		Nicole Altenburg
		Controller and Principal Financial Officer

15

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Glenn M. Dobbs, certify that:

1.       I have reviewed this quarterly report on Form 10-Q of Mines Management, Inc.;

2.       Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.       Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.       The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.        Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.         Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.         Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.         Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.       The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors:

a.        All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.        Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2013
	/s/ Glenn M. Dobbs
	Glenn M. Dobbs
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Nicole Altenburg, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Mines Management, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.         Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.         Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.         Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.         Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors:

a.         All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.         Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2013
	/s/ Nicole Altenburg
	Nicole Altenburg
	Controller and Principal Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Mines Management, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Glenn M. Dobbs

Glenn M. Dobbs

Chief Executive Officer

November 14, 2013

A signed original of this written statement required by Section 906 has been provided to Mines Management, Inc. and will be retained by Mines Management, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Mines Management, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Nicole Altenburg

Nicole Altenburg

Controller and Principal Financial Officer

November 14, 2013

A signed original of this written statement required by Section 906 has been provided to Mines Management, Inc. and will be retained by Mines Management, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Policies)

9 Months Ended

Sep. 30, 2013

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Exploration Stage Enterprise

(a) Exploration Stage Enterprise

Since the Company is in the exploration stage of operation, the Company’s financial statements are prepared in accordance with the provisions of Accounting Standards Codification (“ASC”) 915, Development Stage Enterprises, as it devotes substantially all of its efforts to acquiring and exploring mining interests that management believes should eventually provide sufficient net profits to sustain the Company’s existence.  Until such interests are engaged in commercial production, the Company will continue to prepare its consolidated financial statements and related disclosures in accordance with this standard.

Mining properties, exploration and development costs

(b) Mining properties, exploration and development costs

All exploration expenditures are expensed as incurred.  Significant property acquisition payments for active exploration properties are capitalized, including payments to acquire mineral rights.  Once a feasibility study has been completed, approved by management, and a decision is made to put the ore body into production, expenditures to develop new mines, to define further mineralization in existing ore bodies, and to expand the capacity of operating mines are capitalized and amortized on the units of production basis over proven and probable reserves.  The Company charges to operations the allocable portion of capitalized costs attributable to properties sold.  Capitalized costs are allocated to properties sold based on the proportion of claims sold to the claims remaining within the project area.

Fair value measurements

(c) Fair value measurements

The Company discloses the inputs used to develop the fair value measurements for the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as well as the level within the fair value hierarchy in which the fair value measurements in their entirety fall.  The three levels of the fair value hierarchy are as follows:

Level 1:  Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.

Level 2:  Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in active markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data.

Level 3:  Unobservable inputs due to the fact that there is little or no market activity.

Stock compensation

(d) Stock compensation

The Company measures and records the costs of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award, recognized over the period during which an employee is required to provide services in exchange for such award.  Compensation cost is recognized for awards granted and for awards modified, repurchased or cancelled.

Net loss per share

(e) Net loss per share

Basic earnings or loss per share is computed on the basis of the weighted average number of shares outstanding during the period.  Diluted earnings or loss per share is calculated on the basis of the weighted average number of shares outstanding during the period plus the effect of potential dilutive shares during the period.  Potential dilutive shares include outstanding stock options and warrants.  For periods in which a net loss is reported, potential dilutive shares are excluded because they are antidilutive.  Therefore, basic loss per share is the same as diluted loss per share for the periods ended September 30, 2013 and 2012.

Recent Accounting Pronouncements

(f) Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board issued guidance related to items reclassified from accumulated other comprehensive income. The new standard requires either in a single note or parenthetically on the face of the financial statements: (i) the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its sources and (ii) the income statement line items affected by the reclassification. The Company adopted the provisions of this guidance effective January 1, 2013. This guidance did not have a significant impact on the Company’s consolidated financial position, results of operations or cash flows.

Subsequent events

(g) Subsequent events

The Company evaluated events and transactions subsequent to the balance sheet date of September 30, 2013 for potential recognition or disclosure in the condensed consolidated financial statements.

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended		134 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
REVENUE:
Royalties	$ 9,049	$ 6,527	$ 24,294	$ 27,108	$ 175,598
OPERATING EXPENSES:
General and administrative	561,647	839,656	2,295,501	2,577,430	35,236,758
Technical services and exploration	616,415	1,384,087	2,037,329	3,005,134	32,841,814
Depreciation	232,746	242,469	700,394	733,857	6,125,131
Legal, accounting, and consulting	259,540	130,507	565,425	352,908	5,229,964
Fees, filing, and licenses	128,552	122,390	211,794	176,306	2,957,123
Impairment of mineral properties					504,492
Total operating expenses	1,798,900	2,719,109	5,810,443	6,845,635	82,895,282
LOSS FROM OPERATIONS	(1,789,851)	(2,712,582)	(5,786,149)	(6,818,527)	(82,719,684)
OTHER INCOME:
Gain from warrant derivatives	0	0		357,977	476,381
Gain on sale of available-for-sale securities					2,005,904
Interest income, net	5,495	13,127	19,172	47,741	3,282,006
Total other income	5,495	13,127	19,172	405,718	5,764,291
NET LOSS	$ (1,784,356)	$ (2,699,455)	$ (5,766,977)	$ (6,412,809)	$ (76,955,393)
NET LOSS PER SHARE (basic and diluted) (in dollars per share)	$ (0.06)	$ (0.09)	$ (0.20)	$ (0.22)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (basic and diluted)	28,999,752	28,995,839	28,999,752	28,928,315

XML

AVAILABLE-FOR-SALE SECURITIES:

9 Months Ended

Sep. 30, 2013

AVAILABLE-FOR-SALE SECURITIES:

AVAILABLE-FOR-SALE SECURITIES:

NOTE 3 — AVAILABLE-FOR-SALE SECURITIES:

Available-for-sale securities are comprised of common stocks which have been valued using quoted market prices in active markets.  The following table summarizes the Company’s available-for-sale securities:

	September 30,2013		December 31, 2012
Cost	$	11,165	$	11,165
Unrealized Gains	6,550		8,468
Fair Market Value	$	17,715	$	19,633

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FAIR VALUE MEASUREMENTS: (Details 2) (Asset Retirement Obligation, USD $)	3 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012
Asset Retirement Obligation
Fair value reconciliation of level 3 liabilities measured at fair value
Balance at the beginning of the period	$ 467,926	$ 462,311	$ 456,823	$ 445,807	$ 440,457	$ 435,171
Accretion expense	5,746	5,615	5,488	5,474	5,350	5,286
Balance at the end of the period	$ 473,672	$ 467,926	$ 462,311	$ 451,281	$ 445,807	$ 440,457

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AVAILABLE-FOR-SALE SECURITIES: (Tables)

9 Months Ended

Sep. 30, 2013

AVAILABLE-FOR-SALE SECURITIES:

Schedule of the Company's available-for-sale securities

	September 30,2013		December 31, 2012
Cost	$	11,165	$	11,165
Unrealized Gains	6,550		8,468
Fair Market Value	$	17,715	$	19,633

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STOCKHOLDERS' EQUITY: (Details) (USD $)			61 Months Ended	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Apr. 20, 2012 Public offering 2007 transaction	Sep. 30, 2013 The 2005 transaction	Sep. 30, 2012 The 2005 transaction	Dec. 31, 2012 The 2005 transaction
Common Shares:
Warrants exercised (in shares)			0
Cumulative warrants exercised (in shares)				269,620		269,620
Warrants exercised (in shares)				0	0
Preferred Shares:
Authorized preferred shares	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.00	$ 0.00
Preferred stock, shares issued	0	0

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CONCENTRATION OF CREDIT RISK: (Details) (Cash and cash equivalents, Concentration of credit risk, USD $)	9 Months Ended
	Sep. 30, 2013 item
Cash and cash equivalents | Concentration of credit risk
CONCENTRATION OF CREDIT RISK:
Number of financial institutions	1
Maximum balances insured by Federal Deposit Insurance Corporation	$ 250,000
Uninsured bank deposit balance	$ 7,950,000

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WARRANT DERIVATIVES: (Details) (USD $)	3 Months Ended		9 Months Ended	134 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2013
WARRANT DERIVATIVES:
Gain (loss) from warrant derivatives	$ 0	$ 0	$ 357,977	$ 476,381

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) (USD $)	134 Months Ended
	Sep. 30, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Reclassification adjustment for realized gains included in net income, tax	$ 0

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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

9 Months Ended

Sep. 30, 2013

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Organization:

Mines Management, Inc. (the Company) is an Idaho corporation incorporated in 1947.  The Company acquires, explores, and develops mineral properties in North and South America.

Summary of Significant Accounting Policies:

These unaudited interim financial statements have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, as well as the instructions to Form 10-Q.  Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting solely of normal recurring adjustments) considered necessary for a fair presentation of the interim financial statements have been included.

The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s condensed consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company’s consolidated financial position and results of operations. Operating results for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2013.

For further information, refer to the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

(a) Exploration Stage Enterprise

Since the Company is in the exploration stage of operation, the Company’s financial statements are prepared in accordance with the provisions of Accounting Standards Codification (“ASC”) 915, Development Stage Enterprises, as it devotes substantially all of its efforts to acquiring and exploring mining interests that management believes should eventually provide sufficient net profits to sustain the Company’s existence.  Until such interests are engaged in commercial production, the Company will continue to prepare its consolidated financial statements and related disclosures in accordance with this standard.

(b) Mining properties, exploration and development costs

All exploration expenditures are expensed as incurred.  Significant property acquisition payments for active exploration properties are capitalized, including payments to acquire mineral rights.  Once a feasibility study has been completed, approved by management, and a decision is made to put the ore body into production, expenditures to develop new mines, to define further mineralization in existing ore bodies, and to expand the capacity of operating mines are capitalized and amortized on the units of production basis over proven and probable reserves.  The Company charges to operations the allocable portion of capitalized costs attributable to properties sold.  Capitalized costs are allocated to properties sold based on the proportion of claims sold to the claims remaining within the project area.

(c) Fair value measurements

The Company discloses the inputs used to develop the fair value measurements for the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as well as the level within the fair value hierarchy in which the fair value measurements in their entirety fall.  The three levels of the fair value hierarchy are as follows:

Level 1:  Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.

Level 2:  Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in active markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data.

Level 3:  Unobservable inputs due to the fact that there is little or no market activity.

(d) Stock compensation

The Company measures and records the costs of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award, recognized over the period during which an employee is required to provide services in exchange for such award.  Compensation cost is recognized for awards granted and for awards modified, repurchased or cancelled.

(e) Net loss per share

Basic earnings or loss per share is computed on the basis of the weighted average number of shares outstanding during the period.  Diluted earnings or loss per share is calculated on the basis of the weighted average number of shares outstanding during the period plus the effect of potential dilutive shares during the period.  Potential dilutive shares include outstanding stock options and warrants.  For periods in which a net loss is reported, potential dilutive shares are excluded because they are antidilutive.  Therefore, basic loss per share is the same as diluted loss per share for the periods ended September 30, 2013 and 2012.

(f) Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board issued guidance related to items reclassified from accumulated other comprehensive income. The new standard requires either in a single note or parenthetically on the face of the financial statements: (i) the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its sources and (ii) the income statement line items affected by the reclassification. The Company adopted the provisions of this guidance effective January 1, 2013. This guidance did not have a significant impact on the Company’s consolidated financial position, results of operations or cash flows.

(g) Subsequent events

The Company evaluated events and transactions subsequent to the balance sheet date of September 30, 2013 for potential recognition or disclosure in the condensed consolidated financial statements.

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FAIR VALUE MEASUREMENTS:

9 Months Ended

Sep. 30, 2013

FAIR VALUE MEASUREMENTS:

FAIR VALUE MEASUREMENTS:

NOTE 4 — FAIR VALUE MEASUREMENTS:

The following table summarizes the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013, and the fair value calculation input hierarchy level determined to apply to each asset and liability category. Quoted market prices were used to determine the fair value of available-for-sale securities. See note 5 for further discussion on the fair value measurement technique used to value the warrant derivatives. The Company has no financial assets or liabilities that are measured at fair value on a nonrecurring basis.

	September 30,2013		December 31, 2012		Input HierarchyLevel
Assets:
Available-for-sale securities	$	17,715	$	19,633	Level 1
Liabilities:
Asset retirement obligation	$	473,672	$	456,823	Level 3

The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value during the nine months ended September 30, 2013 and 2012:

	Asset Retirement Obligation
	2013		2012
Balance January 1	$	456,823	$	435,171
Accretion expense	5,488		5,286
Balance March 31	462,311		440,457
Accretion expense	5,615		5,350
Balance June 30	467,926		445,807
Accretion expense	5,746		5,474
Balance September 30	$	473,672	$	451,281

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CERTIFICATES OF DEPOSIT:

9 Months Ended

Sep. 30, 2013

CERTIFICATES OF DEPOSIT:

CERTIFICATES OF DEPOSIT:

NOTE 2 — CERTIFICATES OF DEPOSIT:

The Company owns two certificates of deposit for a total of $1,559,361.  These investments mature in February 2014 and bear interest at the rate of 0.35%.

The Company also has a certificate of deposit pledged as security for a Letter of Credit to the Montana Department of Environmental Quality as a reclamation guarantee for the Montanore expansion evaluation program.  This certificate matures on January 3, 2014, bears interest at the rate of 0.45% and renews automatically each year.  This certificate of deposit ($1,130,271 and $1,124,055 as of September 30, 2013 and December 31, 2012, respectively) is included with reclamation deposits on the Condensed Consolidated Balance Sheets.

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STOCK OPTIONS: (Details) (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Number of Options
Outstanding at the beginning of the period (in shares)	3,942,000	4,142,000	3,622,000		3,622,000
Issued (in shares)	910,000		520,000
Expired (in shares)	(110,000)	(200,000)
Outstanding at the end of the period (in shares)	4,742,000	3,942,000	4,142,000		4,742,000
Exercisable at the end of the period (in shares)	3,832,000				3,832,000
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 1.75	$ 1.71	$ 1.81		$ 1.81
Issued (in dollars per share)	$ 0.57		$ 1.05
Expired (in dollars per share)	$ 1.36	$ 0.99
Outstanding at the end of the period (in dollars per share)	$ 1.53	$ 1.75	$ 1.71		$ 1.53
Exercisable at the end of the period (in dollars per share)	$ 1.76				$ 1.76
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period	3 years 29 days
Exercisable at the end of the period	2 years 7 months 13 days
Assumptions used to estimate the fair value of stock options
Weighted average risk-free interest rate (as a percent)	0.59%			0.30%	0.54%	0.30%
Weighted average volatility (as a percent)	71.52%			72.33%	70.56%	72.33%
Weighted average expected life	3 years			3 years	3 years	3 years
Weighted-average grant-date fair value (in dollars per share)	$ 0.27			$ 0.56	$ 0.38	$ 0.56
Exercised (in shares)				60,000	0	265,000
Exercised (in dollars per share)				$ 1.29		$ 1.06
Additional disclosure for stock options
Intrinsic value of awards exercised				$ 2,400		$ 212,522
Number of Options
Granted (in shares)					910,000
Nonvested at the end of the period (in shares)	910,000				910,000
Weighted-Average Grant-Date Fair Value
Granted (in dollars per share)					$ 0.27
Nonvested at the end of the period (in dollars per share)	$ 0.27				$ 0.27
Disclosures for share-based compensation cost
Unrecognized compensation expense related to nonvested share-based compensation arrangements	168,270				168,270
Total compensation costs recognized for stock-based employee compensation awards	77,430			255,360	327,030	306,230
Cash received from options exercised					$ 0	$ 275,400
Maximum
Disclosures for share-based compensation cost
Expected weighted-average period of recognition of unrecognized compensation cost related to nonvested share-based compensation arrangements					1 year
2012 Plan
Stock options
Number of participants eligible to be granted more than 200,000 common shares during any calendar year					0
2012 Plan | Maximum
Stock options
Shares authorized for grant under the plans	3,000,000				3,000,000
Maximum number of shares to grant a participant in a calendar year					200,000
2012 Plan | Minimum
Stock options
Contractual term					10 years
2003 Stock Option Plan
Stock options
Option exercise price as percentage of fair market value per share on the date of grant					100.00%

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.00	$ 0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	28,999,752	28,999,752
Common stock, shares outstanding	28,999,752	28,999,752

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STOCKHOLDERS' EQUITY:

9 Months Ended

Sep. 30, 2013

STOCKHOLDERS' EQUITY:

STOCKHOLDERS' EQUITY:

NOTE 7 — STOCKHOLDERS’ EQUITY:

Common Shares:

For a description of the public offerings that occurred in 2011 and 2007 and the sales of common stock during 2007 and 2005, refer to the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  The warrants associated with the public offering completed in April 2007 expired on April 20, 2012.  No warrants related to this offering were exercised before they expired.  The warrants associated with the sale of stock in October 2005 also expired on April 20, 2012.  Cumulative warrants exercised relating to this issue were 269,620 for each of the periods ended September 30, 2013 and December 31, 2012.  No warrants were exercised during the nine months ended September 30, 2013 and 2012.

Preferred Shares:

The Company has authorized 10,000,000 preferred shares, no par value.  Through September 30, 2013, the Company had not issued any preferred shares.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended		9 Months Ended		134 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net Loss	$ (1,784,356)	$ (2,699,455)	$ (5,766,977)	$ (6,412,809)	$ (76,955,393)
Unrealized holding gains (losses) arising during the period	(3,703)	8,081	(1,918)	9,986	2,012,454
Less reclassification adjustment for realized gains included in net income, net of income tax of $0					(2,005,904)
COMPREHENSIVE LOSS	$ (1,788,059)	$ (2,691,374)	$ (5,768,895)	$ (6,402,823)	$ (76,948,843)

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS:
Cash and cash equivalents	$ 5,438,013	$ 10,246,073
Interest receivable	4,310	7,815
Prepaid expenses and deposits	281,064	250,892
Certificates of deposit	1,559,361	1,559,361
Total current assets	7,282,748	12,064,141
PROPERTY AND EQUIPMENT:
Buildings and leasehold improvements	836,454	836,454
Equipment	6,450,089	6,450,089
Office equipment	344,939	344,939
Total property and equipment, gross	7,631,482	7,631,482
Less accumulated depreciation	6,093,078	5,392,684
Total property and equipment, net	1,538,404	2,238,798
OTHER ASSETS:
Available-for-sale securities	17,715	19,633
Reclamation deposits	1,191,182	1,184,966
Total other assets	1,208,897	1,204,599
Total assets	10,030,049	15,507,538
CURRENT LIABILITIES:
Accounts payable	438,122	495,326
Payroll and payroll taxes payable	22,605	17,874
Total current liabilities	460,727	513,200
LONG-TERM LIABILITIES:
Asset retirement obligation	473,672	456,823
Total liabilities	934,399	970,023
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred shares - no par value, 10,000,000 shares authorized; -0- shares issued and outstanding
Common shares - $0.001 par value, 100,000,000 shares authorized; 28,999,752 shares issued and outstanding	29,000	29,000
Additional paid-in capital	87,132,799	86,805,769
Accumulated deficit	(1,117,306)	(1,117,306)
Deficit accumulated during the exploration stage	(76,955,393)	(71,188,416)
Accumulated other comprehensive income	6,550	8,468
Total stockholders' equity	9,095,650	14,537,515
Total liabilities and stockholders' equity	$ 10,030,049	$ 15,507,538

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COMMITMENTS: (Details) (Estrella Gold Corp., USD $)	1 Months Ended	9 Months Ended					0 Months Ended
	Feb. 28, 2013 First agreement year	Sep. 30, 2013 First agreement year	Sep. 30, 2013 First agreement year Minimum	Sep. 30, 2013 First agreement year Exploration activities Minimum	Sep. 30, 2013 Second agreement year Minimum	Sep. 30, 2013 Subsequent agreement year	Apr. 05, 2012 Exploration activities
COMMITMENTS:
Percentage of Estrella exploration property located in central Peru that could be acquired by the company							75.00%
Exploration activities commitment							$ 5,000,000
Annual cash payments required to be made to Estrella		100,000				200,000
Annual cash payments made to Estrella	100,000
Exploration and development expenditures			$ 500,000	$ 350,000	$ 500,000

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FAIR VALUE MEASUREMENTS: (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
FAIR VALUE MEASUREMENTS:
Financial assets that are measured at fair value on a nonrecurring basis	$ 0
Financial liabilities that are measured at fair value on a nonrecurring basis	0
Assets:
Available-for-sale securities	17,715	19,633
Liabilities:
Asset retirement obligation	473,672	456,823
Recurring basis | Level 1
Assets:
Available-for-sale securities	17,715	19,633
Recurring basis | Level 3
Liabilities:
Asset retirement obligation	$ 473,672	$ 456,823

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CONCENTRATION OF CREDIT RISK:

9 Months Ended

Sep. 30, 2013

CONCENTRATION OF CREDIT RISK:

CONCENTRATION OF CREDIT RISK:

NOTE 6 — CONCENTRATION OF CREDIT RISK:

The Company maintains most of its cash and cash equivalents in one financial institution.  Balances are insured by the Federal Deposit Insurance Corporation up to $250,000.  The Company’s total uninsured bank deposit balance totaled approximately $7,950,000 as of September 30, 2013.  To date, the Company has not experienced a material loss or lack of access to its invested cash or cash equivalents; however, no assurance can be provided that access to the Company’s invested cash and cash equivalents will not be impacted by adverse conditions in the financial markets.

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COMMITMENTS:

9 Months Ended

Sep. 30, 2013

COMMITMENTS:

COMMITMENTS:

NOTE 9 — COMMITMENTS:

The Company entered into an Exploration Earn-In Agreement with Estrella Gold Corp. on April 5, 2012, pursuant to which the Company could acquire 75% of the Estrella gold and silver exploration property located in central Peru by expending $5,000,000 on exploration activities.  Under the terms of the agreement, the Company is required to make annual cash payments to Estrella of $100,000 prior to the end of the first agreement year ending on February 28, 2013, and $200,000 prior to the end of each subsequent agreement year until the earn-in has been completed.  The Company is also required to expend a minimum of $500,000 in exploration and development expenditures in each of the first and second agreement years.  The Company may terminate this agreement at any time during the earn-in period; however, a minimum of $350,000 in exploration and development expenses was required during the first year of the agreement regardless of whether or not the agreement was terminated.  The Company met the first year’s exploration and development expenditure requirements during 2012.  During February 2013, the Company made the required $100,000 cash payment prior to the end of the first agreement year and continued the Exploration Earn-In Agreement into the second year.

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WARRANT DERIVATIVES:

9 Months Ended

Sep. 30, 2013

WARRANT DERIVATIVES:

WARRANT DERIVATIVES:

NOTE 5 — WARRANT DERIVATIVES:

The Company had common share purchase warrants with exercise price reset features which qualified for treatment as a derivative liability.  These warrants expired on April 20, 2012.  The warrants did not qualify for hedge accounting and, as such, all changes in the fair value of the warrants were recognized in earnings until they expired.  The Company reported no gains or losses from the change in fair value of these warrants in the Condensed Consolidated Statements of Operations for the three months ended September 30, 2013 and 2012.  Gains of $-0- and $357,977 were recorded for the nine months ended September 30, 2013 and 2012, respectively.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended		134 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (5,766,977)	$ (6,412,809)	$ (76,955,393)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	327,030	306,230	11,232,929
Stock received for services			(11,165)
Depreciation	700,394	733,857	6,125,131
Initial measurement of asset retirement obligation			344,187
Accretion of asset retirement obligation	16,849	16,110	129,485
Gain on sale of available-for-sale securities			(2,005,904)
Gain from warrant derivatives		(357,977)	(476,381)
Impairment of mineral properties			504,492
Changes in assets and liabilities:
Interest receivable	3,505	8,625	(4,310)
Prepaid expenses and deposits	(30,172)	(68,188)	(341,475)
Accounts payable	(57,204)	127,721	437,958
Payroll and payroll taxes payable	4,731	22,426	19,425
Net cash used in operating activities	(4,801,844)	(5,624,005)	(61,001,021)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(32,853)	(7,697,121)
Proceeds from disposition of property and equipment			35,423
Proceeds (purchase) of certificates of deposit	(6,216)	51,880	(2,689,631)
Net proceeds from sale of available-for-sale securities			2,005,904
Increase in mineral properties			(144,312)
Net cash provided by (used in) investing activities	(6,216)	19,027	(8,489,737)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from sale of common stock		275,400	74,881,436
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(4,808,060)	(5,329,578)	5,390,678
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	10,246,073	17,121,800	47,335
CASH AND CASH EQUIVALENTS, END OF PERIOD	5,438,013	11,792,222	5,438,013
SUPPLEMENTAL INFORMATION:
Interest paid			65,768
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES:
Unrealized gains on available-for-sale securities	$ 1,918	$ 9,986	$ 6,550

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FAIR VALUE MEASUREMENTS: (Tables)

9 Months Ended

Sep. 30, 2013

FAIR VALUE MEASUREMENTS:

Schedule of financial assets and liabilities accounted for at fair value on a recurring basis

	September 30,2013		December 31, 2012		Input HierarchyLevel
Assets:
Available-for-sale securities	$	17,715	$	19,633	Level 1
Liabilities:
Asset retirement obligation	$	473,672	$	456,823	Level 3

Schedule of fair value reconciliation of level 3 liabilities measured at fair value

	Asset Retirement Obligation
	2013		2012
Balance January 1	$	456,823	$	435,171
Accretion expense	5,488		5,286
Balance March 31	462,311		440,457
Accretion expense	5,615		5,350
Balance June 30	467,926		445,807
Accretion expense	5,746		5,474
Balance September 30	$	473,672	$	451,281

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STOCK OPTIONS:

9 Months Ended

Sep. 30, 2013

STOCK OPTIONS:

STOCK OPTIONS:

NOTE 8 — STOCK OPTIONS:

There has been no change to the Company’s 2003 and 2007 Stock Option Plans during 2013, other than the items summarized below.  For a description of these Stock Option Plans, refer to the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The Board of Directors authorized the Company to establish the 2012 Equity Incentive Plan (“2012 Plan”) which was approved by the shareholders in June 2012.  The Company may grant options to purchase up to 3,000,000 common shares under the 2012 Plan.  The common shares subject to the 2012 Plan may be either authorized and unissued shares or reacquired shares, bought on the market or otherwise, at the discretion of the Board.  The 2012 Plan provides for the issuance of incentive stock options to employees and nonqualified stock options to directors, employees and consultants of the Company.  No participant is eligible to be granted more than 200,000 common shares during any calendar year.  The option exercise price may not be less than 100% of fair market value per share on the date of grant and the options are exercisable within ten years from the date of grant of the option.  The vesting schedule of the options is at the discretion of the Board of Directors.

A summary of the option activity under the Company’s Stock Option Plans as of September 30, 2013, and changes during the period then ended, is presented below:

	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2013	3,622,000		$	1.81
Issued	520,000		$	1.05
Outstanding at March 31, 2013	4,142,000		$	1.71
Expired	(200,000	)	$	0.99
Outstanding at June 30, 2013	3,942,000		$	1.75
Issued	910,000		$	0.57
Expired	(110,000	)	$	1.36
Outstanding at September 30, 2013	4,742,000		$	1.53	3.08	—
Exercisable at September 30, 2013	3,832,000		$	1.76	2.62	—

The fair value for each option award is estimated at the date of grant using the Black-Scholes option-pricing model using the assumptions noted in the following table. Volatility for the periods presented is based on the historical volatility of the Company’s common shares over the expected life of the option. The risk-free rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The Company does not foresee the payment of dividends in the near term.

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2013			2012			2013			2012
Weighted average risk-free interest rate	0.59		%	0.30		%	0.54		%	0.30		%
Weighted average volatility	71.52		%	72.33		%	70.56		%	72.33		%
Expected dividend yield	—			—			—			—
Weighted average expected life (in years)	3.0			3.0			3.0			3.0
Weighted average grant-date fair value	$	0.27		$	0.56		$	0.38		$	0.56

During the nine months ended September 30, 2013 there were no stock options exercised.  During the three months ended September 30, 2012, there were 60,000 stock options exercised with a weighted average price of $1.29 and a total intrinsic value of $2,400.  During the nine months ended September 30, 2012, there were 265,000 stock options exercised with a weighted average exercise price of $1.06 and a total intrinsic value of $212,522.

A summary of the status of the Company’s nonvested options as of September 30, 2013, and changes during the period then ended, is presented below:

	Number of Options	Weighted- Average Grant-Date Fair Value
Nonvested at January 1, March 31, and June 30, 2013	—	—
Granted	910,000	$	0.27
Nonvested at September 30, 2013	910,000	$	0.27

As of September 30, 2013, there was $168,270 of unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plans.  The cost is expected to be recognized over a weighted-average period of less than one year.

Total compensation costs recognized for stock-based employee compensation awards was $77,430 and $255,360 for the three months ended September 30, 2013 and 2012.  Total compensation costs recognized for stock-based employee compensation awards was $327,030 and $306,230 for the nine months ended September 30, 2013 and 2012, respectively.  These costs were included in general and administrative expenses and technical services on the Condensed Consolidated Statements of Operations.  Cash received from options exercised under all share-based payment arrangements during the nine months ended September 30, 2013 and 2012 was $-0- and $275,400, respectively.

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AVAILABLE-FOR-SALE SECURITIES: (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
AVAILABLE-FOR-SALE SECURITIES:
Cost	$ 11,165	$ 11,165
Unrealized Gains	6,550	8,468
Fair Market Value	$ 17,715	$ 19,633

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STOCK OPTIONS: (Tables)

9 Months Ended

Sep. 30, 2013

STOCK OPTIONS:

Summary of stock option activity

	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2013	3,622,000		$	1.81
Issued	520,000		$	1.05
Outstanding at March 31, 2013	4,142,000		$	1.71
Expired	(200,000	)	$	0.99
Outstanding at June 30, 2013	3,942,000		$	1.75
Issued	910,000		$	0.57
Expired	(110,000	)	$	1.36
Outstanding at September 30, 2013	4,742,000		$	1.53	3.08	—
Exercisable at September 30, 2013	3,832,000		$	1.76	2.62	—

Schedule of assumptions used to estimate the fair value of stock options

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2013			2012			2013			2012
Weighted average risk-free interest rate	0.59		%	0.30		%	0.54		%	0.30		%
Weighted average volatility	71.52		%	72.33		%	70.56		%	72.33		%
Expected dividend yield	—			—			—			—
Weighted average expected life (in years)	3.0			3.0			3.0			3.0
Weighted average grant-date fair value	$	0.27		$	0.56		$	0.38		$	0.56

Summary of nonvested options

	Number of Options	Weighted- Average Grant-Date Fair Value
Nonvested at January 1, March 31, and June 30, 2013	—	—
Granted	910,000	$	0.27
Nonvested at September 30, 2013	910,000	$	0.27

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Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 14, 2013
Document and Entity Information
Entity Registrant Name	MINES MANAGEMENT INC
Entity Central Index Key	0000066649
Document Type	10-Q
Document Period End Date	Sep. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		28,999,752
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3

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CERTIFICATES OF DEPOSIT: (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
CERTIFICATES OF DEPOSIT:
Number of certificates of deposit owned	2
Certificate of deposit value	$ 1,559,361	$ 1,559,361
Reclamation deposits	1,191,182	1,184,966
Certificates of deposit maturing in February 2014
CERTIFICATES OF DEPOSIT:
Certificate of deposit value	1,559,361
Interest rate (as a percent)	0.35%
Certificates of deposit renewed and maturing on January 3, 2014
CERTIFICATES OF DEPOSIT:
Reclamation deposits	$ 1,130,271	$ 1,124,055
Interest rate (as a percent)	0.45%