Earlier today, Star Mountain
Resources, Inc. (OTC: SMRS) announced the reception of an Industry Guide 7
(IG7) Mineral Reserve Report for its recently acquired Balmat mine property in
St. Lawrence County, New York. The report supports Star Mountain’s initial
reserve estimates regarding the property, reflecting roughly 585,000 tons of
proven and probable reserves with a 9.2 percent grade zinc that’s expected to
generate an estimated $80.8 million in revenue over an initial 2.5-year mine
plan. The IG7 Report also highlighted additional mineralized material adjacent
to the current reserves, which are expected to be reclassified to reserve
status in the future and play a key role in the execution of a larger, 8.5-year
mine plan.
“We believe the findings in the IG7
report are very positive and reaffirm our confidence that the geological and
engineering conditions reflected in the long production history of the Balmat
mining operation can be sustained well into the future beyond the initial
2.5-year plan,” Joe Marchal, chief executive officer of Star Mountain, stated
in the news release. “We continue to evaluate the current zinc market and the
best strategy to move forward with a production plan and schedule.”
The IG7 Report also offered
information on the condition of the Balmat property’s existing infrastructure.
A key takeaway from the report was that the Balmat Mine and mill remain in good
condition, ready to be placed into production with minimal expense and time.
Upgrades to the mine’s ventilation system and modifications to the diesel
equipment fleet will be necessary in order to adhere to more stringent diesel
particulate matter regulations, which have been adopted since the mine was
placed on care and maintenance, but the mine was still described as “a low cost
fully mechanized operation,” clearing the way for recommencement of mining
operations in the months to come.
“The report recommends initiatives
we plan to pursue aimed at lowering operating expenses, increasing zinc
recovery and concentrate grades and minimizing internal mine dilution,” stated
Mark Osterberg, president and chief operating officer of Star Mountain. “We are
very encouraged by the report and look forward to developing a strategy to move
forward in a timely, cost effective and profitable manner.”
Star Mountain previously announced
the acquisition of the Balmat mining complex in November as part of its
agreement to acquire Northern Zinc and Balmat Holding Corporation, including
St. Lawrence Zinc Company, LLC. The mining complex includes a permitted and
equipped zinc mine, a 5,000 ton per day floatation mill, an office complex and
the infrastructure necessary to enable to operation of the mine. In total, the
acquisition included 2,699 acres of fee simple real estate and over 50,000
acres of mineral rights within St Lawrence County, New York, and its
neighboring counties.
For more information, visit
www.starmountainresources.com
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