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News Releases
| | October 26, 2005
Sterling Mining Advances Major Three-Stage Underground Rehabilitation Program at Sunshine Mine
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| | 13,200-Volt Substation First Step in Restoring Mine-Wide Power; Hoist Renovation A Priority
Wallace Idaho, October 26, 2005 - (BUSINESS WIRE) - Sterling Mining Company (OTC:SRLM) announced today that a key component of the Sunshine Mine's ongoing rehabilitation - re-establishing underground electrical power for lights, fans, pumps and diamond drill equipment - is now under way. This is the first of a three-stage plan to restore production at the company's flagship asset, the Sunshine Mine in Idaho.
This first stage, currently in progress, focuses on the construction of a new 13,200-volt substation in the Silver Summit Shaft hoistroom, just over a mile in from the portal, to re-establish underground power and prepare the hoist & hoistroom for the second stage. The second stage will consist of a complete hoist renovation and modernization by contractors in the first half of 2006 with commissioning later in the year. The final stage, expected to start after commissioning, will be rehabilitation of the Silver Summit Shaft.
During September and October, mine personnel inspected the mine's main production shaft, the Jewell Shaft 3100 Level and the 3000 Level on the eastern, Silver Summit side of the mine. These key levels of the Sunshine Mine escapeway and ventilation system were found to be in very good condition. Upon completion of the Silver Summit Shaft rehabilitation, minimal time and work will be required to make the entire 22,300-ft. escapeway system operational.
Sterling's Sunshine Mine Manager Mike McLean stated: "We anticipate that on completion of this three-stage program and following commissioning of the Silver Summit Shaft hoist, Sterling will be in position to initiate production on a preliminary scale likely by late 2007 or early 2008. While the contractors are at work on the Silver Summit hoist next year, our crews will be re-installing substations, pumps and fans adjacent to the Jewell Shaft so we can jump start our pre-production exploration and development next summer."
Recently, Sunshine Mine personnel and independent contractors completed several tasks necessary to move the project forward:
- the Jewell double drum and single drum (chippy) hoists were outfitted with new wire ropes
- compressed air receiver vessels were certified and the 500-Hp, Ingersoll-Rand compressor returned to service
- the 45,000-gallon mine fire and process water tank was reconditioned and lined
- 13,200-volt power was restored to the Silver Summit portal area, the main hot water heater and distribution system was returned to operation and change room facilities prepared for an increasing number of personnel
- potable water service was established, building roof repair performed and general building maintenance and painting completed
In addition to the physical infrastructure rehabilitation work, Phase III of the Mine Plan is nearing completion. This final phase focuses on a complete mineral inventory and definition of high-priority exploration targets, as-well-as a review and, where appropriate, revision of the Phase II Financial Model and critical path schedule.
Sterling initiated a three-phase mine planning process with Phase 1 in January, 2004. Phase 2, completed in late March this year, demonstrated that the Sunshine Mine would be profitable with silver prices at US 6.00 or above. The study estimated that total mining and milling costs at Sunshine would be at or under $4.50 per ounce. The mine plan projects full annualized production capability in the 5 to 6 million ounce range.
Sterling Mining Company controls the legendary Sunshine Mine, the richest silver mine in American history with more than 360 million ounces of production over the past century. The Company also holds several properties in Mexico, including the Baroness Tailings Project in the Zacatecas silver district, which began production in 2005. Sterling stock trades on the OTC Market Exchange under the symbol "SRLM". Please visit the Sterling website at www.sterlingmining.com for more information.
Certain statements contained in this press release are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on beliefs of management as well as assumptions made by and information currently available to management. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results.
For more information contact:
Sterling Mining Company
Raymond De Motte, (208) 666-4070
www.sterlingmining.com
Investors Relations Contacts:
Cavalcanti Hume Funfer Inc. (CHF Inc.)
Olav Svela, Vice President & Account Manager,
Tel: (416) 868-1079 ext: 242
olav@chfir.com
Cathy Hume, CEO
Tel: (416) 868-1079 ext.: 231
cathy@chfir.com
If you would like to receive press releases via email contact Alison Tullis at Alison@chfir.com. and specify "Sterling press releases" in the subject line. |
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