A Golden Opportunity
Star Mountain Resources Inc. is a micro cap mining company focused on the acquisition of mineral properties and their development into producing mines. We believe the business climate is favorable for the low cost acquisition of high value mineral properties and we intend to grow our company primarily through acquisitions.
We are currently engaged in the activities necessary to re-start our Balmat zinc mining operation in St. Lawrence County, New York, recently acquired from HudBay Minerals. The restart will transform our company from a junior explorer to an active producer with a revenue stream in the latter part of 2016.
Balmat Zinc Mine
Massive sulfide zinc mineralization was first recognized in the Balmat-Edwards district in 1838 and first production began in 1915. Since then, the district has produced in excess of 43 million tons of ore from the Balmat, Edwards, Hyatt, and Pierrepont mine complexes with average grades ranging from 8.6% Zn to 16.4% Zn. The Balmat Mine operated continuously from 1930 – 2003, when production ceased due to depressed zinc metal prices. Production resumed in 2006 to directly address a projected, short term concentrate shortfall at the parent company's smelter. The mine was closed and placed on care and maintenance in the fall of 2008 after the projected smelter need was addressed, in the face of a general economic turndown and resulting fall in zinc prices. The Balmat mine has produced a total of 30.7 million tons grading 8.6% zinc. The mine is fully permitted and in compliance with all current Federal and State mining regulations and is currently on care and maintenance status.
Geology and Mineralization
The Balmat-Edwards district zinc deposits occur in intensely folded, distorted and deformed Proterozoic metasedimentary rocks of the NW Adirondack Lowlands, subjected to high temperature and high pressure metamorphism during the Grenville Orogeny approximately 1.1 billion years ago. The zinc deposits are hosted in the Upper Marble Formation, a sequence of shallow water carbonate units characterized by siliceous, dolomitic, diopside-rich and evaporate-bearing marbles. Zinc orebodies exhibit tabular or pod-like geometries and occupy zones within the hinges and axial regions of folds and faults associated with the Sylvia Lake syncline, a major regional scale structure recognized at Balmat.
The Balmat deposits are classified as SedEx-type, commonly defined as deposits formed from precipitation of metals from brines generated by evaporation and movement of fluids through carbonate and evaporate-rich rocks in marine sedimentary basins. The fluids/brines leach metals as they migrate through the sedimentary pile along regional and local structures and ultimately reach the sea floor where the metals precipitate as lenses and sheets in favorable structural and stratigraphic settings.
Location: St. Lawrence County, New York, in the historic Balmat-Edwards Mining District
Ownership: Wholly owned by Star Mountain Resources
Permits: Fully permitted and in compliance with all current Federal and State mining regulations
Historical Production: 30.7 M tons grading 8.6% zinc
Mine Plan: 8.5-year with excellent potential to increase life of mine and mining rate
Mining Method: Modern mechanized underground mining using a combination of room and pillar and long hole stoping
Mine: 4000 tons per day hoisting capacity, rubber tired, mobile mining fleet
Mill: 5000 tons per day zinc concentrator, a tailings facility, a concentrate storage area, and rail and truck transportation infrastructure
BALMAT INVESTMENT HIGHLIGHTS
- Permitted mining operation with planned production in 9 to 12 months after securing long-term debt financing.
8.5-year mineral base with excellent potential to extend mine life
Numerous mining practice and processing improvements will lower OPEX
Northern Zinc acquisition adds unparalleled mining experience to SMRS
Long-term power agreement ensures a 40% reduction in power costs
Zinc market macro indicators are positive • Excellent local infrastructure
The Chopar project covers approximately 2000-hectares in the Star Mining district of southern Utah, near the town of Milford. These holdings comprise 116 unpatented mining claims, fee-simple, patented mining claims and mineral leases on State of Utah lands. The Star Mining District is located in the Star Range of southwestern Utah, approximately 200 miles south-southwest of Salt Lake City. The Star Range hosts tilted and faulted, early Paleozoic to middle Mesozoic carbonate and clastic sedimentary rocks with Tertiary intrusive and extrusive rocks. Base metal and silver and gold mineralization is associated with the Tertiary intrusive event and includes vein-fissure type deposits, chimney-manto replacements, skarns and silicified breccia veins and pipes. The Chopar project area and the larger Star Mining District hold significant potential for economic concentrations of skarn and sediment-hosted Au-Ag mineralization. The presence of skarn mineralization in outcrop, in historic mines and in drill core and chips is encouraging. The extent of zones affected by contact metasomatism is potentially large enough to host orebodies of size and grade of interest to junior and major mining concerns.
Southern Utah is a favorable jurisdiction for permitting and operating mines. In particular, the Star Mining District lies near rail and roads with access to national and international goods and products. The climate is mild and amenable to any mining methodology. The normal activist communities associated with Colorado, Arizona and California are substantially underrepresented. The operations of CS Mining, immediately adjacent to the project area are proof that small scale, open pit mining operations may be successfully permitted and operated in Beaver County.
Joseph Marchal - CEO
Joseph Marchal served as chief executive officer for Asia-Pacific Region of Chi-X Global Inc., a subsidiary of Instinet, LLC, from November 2008 to June 2009, where he was responsible for the Instinet platform expansion in the region. Marchal also served as president and managing director of Asia Region at Instinet, LLC, as well as president of Instinet Japan Ltd. from January 2004 to November 2008, where he had strategic responsibility for Instinet's Asian product. Marchal joined Deutsche Bank Securities from 2002 to 2004, and served as senior managing director of Deutsche Bank Securities, where he was responsible for the distribution of Japanese Equities Global Product. Marchal was also its managing director, and was in charge of sales trading, agency execution, program trading, listed futures, and options and connectivity sales. He served as head of Japanese Equity Sales Trading and Execution Services at Salomon Brothers Japan (now Nikko Citigroup) from 1996 to 2002, and previously held senior positions in Asia at Daiwa Securities International and Fidelity Investments Japan as director of trading from 1983 to 1996. Marchal began his career in 1983 at Maruso Securities as a floor trader on the Tokyo Stock Exchange and has more than 25 years of experience in the securities industry, where he was an active member of the Tokyo brokerage community and a regular participant in industry advisory groups and conference panels. Marchal holds a Bachelor of Science from Sophia University, Japan.
Mark Osterberg Ph.D - President/ COO
Mark Osterberg has worked for major gold and base metal mining companies and has over 30 years of experience in the mining business. He has provided high-level technical expertise to projects in the USA and overseas and has managed multiyear exploration and development projects as well. Osterberg has expertise and experience in porphyry copper and molybdenum systems, carlin-type gold systems, shear-zone and volcanic-hosted mesothermal gold systems, magmatic Cu-Ni-PGE and construction materials. His project related experience includes grass-roots, green-fields reconnaissance programs, brownfields exploration and development programs, mine geology and modeling. He has developed innovative mapping techniques for regional and mine scale programs, has excellent computer skills and is an expert GIS for geology practitioner.
Donna Moore - CFO
Donna Moore is a business financial professional with over 29 years of hands-on business experience and has held positions as chief financial officer, controller, and secretary/treasurer of both public and private corporations. Her experience includes general accounting, financial reporting, systems implementation and management, treasury functions, and cost accounting. From 2010 to present, Moore has served as chief financial officer for Summit Capital USA, Inc. in Tempe, Arizona. Previously, Moore served as chief financial officer of: eWellness Healthcare Corporation; Elevate, Inc. in San Clemente, California; Voice Assist, Inc. in Lake Forest, California; and Oraco Resources in Tempe, Arizona. Moore has also served as part-time controller for Skye International, Inc. in Scottsdale, Arizona, and controller for Monarch Brass & Copper Corp. in Waterbury, Connecticut. Moore specializes in executing uniform financial controls so as to improve productivity, reduce costs, and maximize profitability. She has a Bachelor of Science in Business Management, and an MBA in finance and accounting from Brigham Young University.
Thomas Bidgood, Ph.D - Consulting Geologist
Dr. Thomas Bidgood has worked for major gold and base metal mining companies and has more than 30 years of experience in both the exploration and operations side of the mining business. He has provided high level technical expertise to projects in the U.S. and overseas, and has managed multiyear exploration and development projects. Dr. Bidgood has expertise and experience in porphyry copper and molybdenum systems, volcanogenic massive sulfides, shear-zone and volcanic-hosted mesothermal gold systems and magmatic Cu-Ni-PGE systems. His project related experience includes grass-roots, green-fields reconnaissance programs, brownfields exploration and development programs and geological modeling in support of acquisitions and operations. He has developed innovative cross-training techniques for exploration and mine geologists and is an expert geophysics for geology practitioner. From 2001 to 2011 he was professor and chairman of the Natural Sciences and Math Department for Colorado Christian University in Lakewood, Colorado.
John Heinzig - Operations Manager
John Heinzig has been working in a support position with Star Mountain for the past two years as operations manager. Heinzig has a great amount of experience in managing people and operations and has a varied background in both fields. He was a strategic accounts manager in the circuit board industry for eight years, was production manager for Duraflex Products, and spent 13 years in the automotive industry as a service manager, service advisor, parts manager and sales manager. Most recently he was in the position of director of private equity funds at Summit Capital USA. Heinzig brings organization skills and the ability to follow a project to completion. He is tasked with keeping all of Star Mountain's mining claims on track and up-to-date, as well as any other mining requirements that may include procurement, transport, and will be involved at the ground level in all future and current M&A projects.