SMRS Primed to Capitalize on Rising Zinc Prices
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