The global zinc industry is currently suffering a supply
shortage, which translates to good news for Star Mountain Resources, Inc. (OTC:
SMRS). SMRS is gearing up following its recent acquisition of Balmat Holding
Corporation. The Balmat mine in upstate New York has a long history of
successful zinc production. Zinc mining companies have been shut down in China
and Australia, amounting to about 10% of the total world supply, according to
Haywood Securities. Acquiring the Balmat Zinc Mine means SMRS is positioning
itself for success. According to its Industry Guide 7 Mineral Reserve report
(IG7), the Balmat Mine will require a minimal investment to prepare for
production. At the same time, projections for the next 2.5 years and 8.5 years
show potentially large profit margins due to rising zinc prices.
The Balmat Mine is located in upstate New York in St.
Lawrence County, about 1.3 miles away from Fowler. It was initially opened in
1930 and worked for 71 years until production was ceased in 2001. Production
and mining was resumed between 2006 and 2008, when it was stopped due to
another drop in zinc metal prices. The Balmat Mine has produced more than 30
million tons of zinc since it was opened and never ceased production due to
issues with the mine itself. In addition to that, the IG7 report confirmed that
the mine is well-situated, capable of producing high-grade zinc, and can be
placed into production with minimal expense and time.
On another note, Haywood Securities has stated that zinc
price predictions have been very conservative this year, and the firm still
estimates zinc to be at a healthy $1.20 per pound in 2018. The last time zinc
inventory levels hit a critical low was in 2006, causing zinc metal prices to
spike to $2 per pound. The IG7 also shows promising results as the mineral
reserve estimate dictates the zinc produced would be high-grade zinc
concentrate suitable for sale to smelters around the globe.
However, Star Mountain Resources Inc. is not only working
toward meeting its financial goals. The company also has a clear vision to
responsibly develop great assets while maintaining a strong focus on their core
values. These include the safety of all employees and local communities, promoting
sustainable growth and maintaining high standards of respect for all the people
involved in each project. In addition to this, the company always aims to
improve the communities of which it becomes a part, as well as providing
transparency and honesty to all stakeholders, and SMRS is passionate about
improving its practices wherever it can.
For more information, visit www.starmountainresources.com
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