New mine owner has big plans
Posted: Wednesday, January 12, 2011 8:35 am
By EMIL WHITIS
Staff writer | 0 comments
After buying out the Sterling Mining Co.
in a bankruptcy auction in April for a cool $24 million,
Silver Opportunity Partners LLC (SOP) has rolled up its sleeves
and is anxious to start drilling test holes in an effort to
awake the 125-year-old silver-spewing giant which is
the Sunshine Mine.
The most valuable among Sterling's assets was the lease to
the Sunshine, which was owned by Sunshine Precious Metals,
and a purchase-option which SOP immediately exercised.
* *
"There are no multiple parties or multiple leases," said
Operations Manager of the Sunshine Mine Robert Higdem.
"The Sunshine Mine is now whole."
Since its closing in 2001 the mine has been under care and
maintenance employing just 16 people: a fraction of the
hundreds of jobs provided during its heyday.
Higdem said SOP is ready to get the diamond drill turning.
"We have a very aggressive drilling program planned," said Higdem.
"The price of silver is great .... there's a lot of excitement
and energy in the group."
He said there are two major obstacles to overcome before
the company can make the jump towards becoming operational.
In January 2010 approximately 700 feet of the 3,000 foot
Silver Summit Shaft, used by Sterling as a secondary
escapeway, experienced a collapse near the bottom.
Higdem said it is a problem that will need to be remedied
before the mine can go into production.
"Because of the inherent issues with the collapse we can't just
send people down there," said Higdem.
"It's important to note that these things take time."
It is impossible to tell the extent of the damage and what measures will be demanded to shore up the shaft said Higdem. He said for that reason he could not provide a solid estimate as to how long repairs will take.
The other obstacle is locating prospective high density pockets of silver nearly a mile underground. It is a challenge that has been shouldered by SOP geologists since August when they began to pour over old records and reports collected from over a century of busting through rock at the location. Higdem said the data will be compiled in technologically advanced geo-mapping software programs which will anticipate the location of unexplored silver veins.
"We want to make sure we are not wasting any effort," said Higdem.
SOP is currently interviewing prospective diamond drillers and, according to Higdem, hopes to be probing the depths by early this year.
"We've received bids and been in communication with those contractors that we believe are a good fit with the operation," he said. "Now it's just a matter of whittling it down to the one or two we want."
Higdem said SOP expects the exploration period to last approximately one to two years.
"Once completed we can step back and say here's what we got and this is what we're seeing," he said.
SOP is a privately held company, owned by Thomas Kaplan, and based in New York as part of the Electrum Group of Companies which is an international investor in precious metal mines.
"(Kaplan) believes the Sunshine mine is not dead as many do," said Higdem. "He also believes in utilizing local labor and materials--what better group to choose from than the people who live here and know it?"
The company, while it intends to be "aggressive" during the exploratory period, will take a cautious, sustainable approach when (and if) it goes operational, he said.
"The belief we have is founded in the mine's long-term sustainable producing," said Higdem. "The best way to start that up is getting the diamond drill turning and get this thing moving toward production."
Over its 125-year existence the Sunshine Mine has produced more than 360 million ounces of silver.
More about Mine
Posted in News on Wednesday, January 12, 2011 8:35 am | Tags: Mine, Sunshine Mine, Silver Opportunity, Higdem
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