SMRS Encouraged Following Review of Industry Guide 7 Mineral Reserve Report on Balmat Mine
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