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Tuesday, April 10, 2007

Sterling mining update

"Sterling Mining Co., headquartered in Wallace, Idaho, controls the Sunshine Mine, currently forecasted to begin production in December 2007. Sterling Mining Co. also owns the producing Barones Tailings Project in the Zacatecas Silver District of Mexico and 4,500 acres in Montana.

Boasting over 100 years of historic production, the Sunshine Mine is one of the largest silver mines in the world. The mine produced over 365 million ounces of silver from 1884 to its closure in 2001 when it went bankrupt as a result of its debt burden and low silver prices. By moving quickly, Sterling Mining Co. management snapped up the Sunshine Mine at a bargain basement price. Sterling Mining currently controls over 19,153 acres in the Silver Valley, which includes the Sunshine's 6,127 acres. The potential for the mine is staggering if one compares the old cap structure of the Sunshine mine to Sterling Mining Co. In 1993, the Sunshine Mining Company had 200 million shares outstanding and $100 million in debt. With silver prices between $3.70 and $5.30 an ounce it had a market cap of $500 million dollars. Compare those numbers with today's 28.8 million shares outstanding, no long term debt, silver prices in the $10.00 to $15.00 range, and a market-cap under $120 million. Current replacement cost estimates of the existing infrastructure are well in excess of $100 million. The Sunshine Mine has produced more than 365 million ounces of silver, but only 15% of the land package has been explored by modern techniques.
Sterling Mining Co. has put together an experienced technical team to ensure that the mine infrastructure operates efficiently and meets high safety standards. As a result, Sunshine Mine won the coveted 2005 Sentinels of Safety Award granted by the U.S. Department of Labor Mine Safety and Health Administration. A multi-phase program is under way to return the past-producing mine to long-term sustainable production. Now in Phase III, Phase I included exploration for mineral potential in some of the top-producing areas of the past and some of the unexplored ``upper country'' target zones. The number of employees is now over 40 and management has installed new transformers and re-established 13,200-volt power, while upgrading the lighting, ventilation, and fire suppression systems. Sterling Mining Co. also recently announced it has hired a Mill Manager and Chief Metallurgist who spent 16 years with Sunshine Mining as Superintendent of the Silver Refinery and Antimony Plant."

http://www.otcstockreview.com/Files/SRLM/SRLM_Review.pdf

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