Spokane-based Mines Management Inc., which is involved in the acquisition, exploration, and development of precious- and base-mineral properties, has reported a net loss of $2.7 million for the third quarter, compared with a net loss of $2.8 million for the year-earlier quarter.

The company said its operating expenses fell by $900,000 in the area of stock compensation in the latest quarter, compared with a year ago, but that was mostly offset by a $700,000 increase in technical services costs from exploration of the La Estrella Project, a gold-silver project in Peru.

In August, Mines Management signed a letter of intent with Estrella Gold Corp. for an option to acquire up to 75 percent of the Peruvian project.

For the first nine months of this year, the company reported a total net loss of $6.4 million, compared with a loss of $3.1 million in the year-earlier period.

Mines Management also has the Montanore Project, in northwestern Montana, which is awaiting federal approval for an exploratory mining permit that could lead to a large silver and copper mine 18 miles southwest of Libby, Mont. That project would run beneath the Cabinet Mountains Wilderness, just east of the proposed Rock Creek Mine of Spokane Valley-based Revett Minerals Inc. Revett's project has drawn opposition from environmental groups that say the mining activity could potentially harm grizzly bear and bull trout habitat.

"Significant progress has been made on the permitting process for the Montanore over the past quarter, and while the timing is always a significant variable, there are very few steps remaining in the permitting process," says Glenn Dobbs, the company's president and CEO.

The company says it expects expenses of about $2 million for the final quarter of this year. The projected spending includes $1 million in general and administrative expenses, $500,000 for engineering and geological studies for the Montanore Project permitting, and $500,000 on exploration support expenses, including permit renewals at La Estrella.

The company expects to limit its additional capital expenditures until the timing for receiving a decision for the Montanore Project becomes clearer, the company's press release says.

"Additional external financing would be required following receipt of the record of decision to complete the evaluation drilling program and a bankable feasibility study at the Montanore Project and to fund increased exploration efforts at the La Estrella property in 2013," the press release says.

At La Estrella, Dobbs says initial drilling results are encouraging. The drilling program showed results that extends the known gold and silver mineralized zone substantially, he says.