Replies to post #41 on Chester Mining (CHMN)

[sanbrunobaby]

Opinion on which issue ?

The fellows behind Sunshine Silver used the heart of the mining plan De Motte and Mclean developed, and decided to expand capacity- while getting just the right moment to go public. Since they have deep pockets they can afford to wait.SoI am not sure they would want to merge with USA Silver at these prices, unless they could get USA silver at bargain prices- or they gte tied of drain in capital keeping the Sunshine going.The USA Silver mine lower grade and tougher to operate. Keep in mind during the De Motte era at Sunshine a lot of focus was on rehabilitating the mine step by step- so Sunshine Silver guys got a property in many ways in better shape the USA Silver property considering the higher gade at the Sunshine.

Not sure CHMN would want to speculate on production timeframe at the Sunshine, but the NI43-101 report filed by Sterling on sedar had in appendix a production time table that you may wish to look at.

CHMN in the catbird seat, Sunshine Silver has to buy them out, and I believe this will happen at $10 per share plus.Sterling reported 50 + million ounce resource on Chester veins + even more important, of deep high grade targets at the mine for its future, several on Chester property.If you can find an old SterlingMining Company site or powerpoint I sem to recall there was a slide that showed this. Happy hunting !

Anoteh rissue is whether Chester has any APEX rights on its veins extending beyond property boundaries- even if they cant prove this, Sunshine Silver wont want to get tied up in litigation.

[sanbrunobaby]

Sunshine Silver or Hecla will probably eventually buy US silver, but both can afford to wait, especially Sunshine Silver.First just lok at what they have raised and spent to date- if USA silver became cheap enough they could probably find way to make cash offer but I believe Sunshine Silver will prefer to pay with paper , and paper that has a value higher after they start trading. Hecla cango after USA Silver any time, but they need tobe more aggressive to acquire it- would be great marketing plus for Hecla.

I read the posts you referred me too. Not really sure where they are coming from. For example they talk about labor relations. A bit of history- the Galena Mine always had some in the union, and Sunshine was unionized under Sunshine Mining Company.When Sterling took over, De Motte and Mclean had a very worker focused philosophy, and De Motte was very close to the workers.No union during Sterling years, and Sterling had no probem hiring the best workers from most mines.In fact De Motte even went out of his way to hire strong union types- he made famous agreement with one that if ever workers felt company didnt have their best interests at heart, he would personaly invite the union in. At the time ,USA Silver went all over Toronto trying to promote company, and explaining poor results from not being able to hire enough miners. Yet Sterling had almost zero per cent turnover, and had a waiting list of miners wanting to work there, at least until De Motte left in May 2008. Now Sunshine work force managed by your typical mine managers, competent, not sure where idea is that Galena labor-management culture would benefit current Sunshine workforce.

But the only company in Pacific Northwest Sterling couldnt hire best workers from was Hecla, which was and is considered blue chip company to work for.

So a bit odd the post indicating the Galena work force ( especially considering recent layoffs) would strengthen Sunshine Silver due to good labor-management relations.

Dont get me wrong, Galena Mine has some good potential in a rising silver market, and some synergies with the Sunshine.But it is not the easiest mine to generate a profit from or achieve sustained compound growth- something the last 20 years has shown.