Zinc prices have been exploding in recent months, up nearly
45% since the beginning of 2016 (http://nnw.fm/BlPv5), following what is seen
by many as a classic example of shrinking supply and growing demand. In a
recent article on the tightening zinc market in the UK (http://nnw.fm/h30pP),
Reuters columnist Andy Home points out that “The International Lead and Zinc
Study Group (ILZSG), for instance, estimates that mine output outside of China
contracted by 9.5 percent in the first quarter”, and “Investors have been drawn
in by a narrative of mine closures and a resulting tightening of the raw
materials supply chain.”
On the demand side, emerging economies, as well as the
associated need for cars and trucks, continue to support the need for zinc.
Zinc is the fourth most widely-consumed metal in the world, and it is an
important alloy used in the production of automobiles and related products, as
well as for zinc undercoating. A recent article on manufacturing in the Indian
state of West Bengal, for example, emphasized the increasing government focus
on growing the region’s automobile manufacturing (http://nnw.fm/4OuXX).
For Star Mountain Resources, Inc. (OTC: SMRS), a micro-cap
mining company focused on acquiring mineral properties and turning them into
producing mines, the timing couldn’t be better. The company is currently
engaged in restarting its Balmat zinc mining operation in St. Lawrence County,
New York, which it acquired from HudBay Minerals in late 2015. It’s a move
designed to propel Star Mountain from a junior explorer to an active producer,
with a revenue stream expected in the latter part of 2016.
The Balmat/St. Lawrence Zinc Mine has a long and successful
record, producing in excess of 30 million tons of ore with a grading of 8.6%
zinc. It’s also fully permitted, complying with all current Federal and State
mining regulations, and in line with Star Mountain’s stated dedication to the
health and safety of employees, as well as local communities, and associated
environmental responsibilities.
For more information, visit www.starmountainresources.com
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