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SMRS Advances from Exploration to Production with Acquisition of Balmat Zinc Mine
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
