Companies in the mining business
are frequently exploring new avenues to make the jump from an exploration stage
company up to a sought after company with revenue production. Much like a
caterpillar has a relatively dull, uneventful life until it reaches the cocoon
stage and emerges as a beautiful butterfly with wings to explore and display
its magnificence for the entire world to enjoy, Star Mountain Resources, Inc.
(OTC: SMRS) has been in the dull exploration stage searching for a reliable
property to call home before it can reap the benefits of mining operations and
revenue production. Well, with the recent announcement of its acquisition of
the Balmat Zinc Mine in New York, Star Mountain has emerged from its cocoon, so
to speak, and should have a much more eventful life moving forward.
The Balmat mining complex –
including a 4,000-foot-deep mine, a 5,000-ton-per day flotation mill, an office
building and necessary infrastructure for mine operation – was originally
shuttered as a result of declining zinc prices, but forecasts for the coming
months are promising. According to Mark Osterberg, president and chief
operating officer of Star Mountain, zinc prices are set to increase beginning
next year following the closure of several zinc mines with depleted reserves.
Demand is the driving force behind
most operational business decisions. Basically, if the demand for zinc
increases, the price will go up, and companies with proven reserves and
production will be very happy – along with their shareholders. This acquisition
and the company’s announcement to begin the hiring process for the Balmat Mine
may have given Star Mountain the jolt it needed to attract the attention of new
investors and analysts. One thing is for sure: once a company starts producing
revenue, more people are going to realize that it has started to walk the walk
instead of just talking the talk. Making good on your plans and promises is
essential for establishing and maintaining your reputation, which, in the small
and micro cap space, is worth its weight in gold, or zinc in this case.
For more information, visit
www.starmountainresources.com
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