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News Releases
| | April 21, 2006
Sterling Mining Approves Option Agreement with Red Lake Resources to Explore the JE Project in Montana
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| | Wallace, Idaho - April 21, 2006 - (BUSINESS WIRE) - Sterling Mining Company (OTC: SRLM) announced today it has entered into an option agreement with Red Lake Resources (TSXV: RL) covering Sterling Mining's JE silver Project in northwestern Montana.
The JE Project consists of 35 unpatented mining claims covering approximately 700 acres in Saunders County, Montana. The project is within the Montana Copper-Sulphide Belt, a 1,600 square mile zone which hosts the Troy, Rock Creek and Montanore stratiform silver-copper deposits. The JE property is located 3 miles north of the Rock Creek Mine. Exploration conducted by U.S. Borax and Santa Fe Pacific Minerals in the 1980's outlined a large copper-silver anomaly on the property.
Under the terms of the agreement, Red Lake can earn a 75% interest in the property for cash payments totaling US $300,000, of which two US $50,000 payments will be received in 2006 and the remainder over the next three years; the issuance of 500,000 common shares of Red Lake to Sterling and US $600,000 work commitment for exploration during the next 3 years. Sterling will retain a 25% interest and a 2.5% net smelter return. After Red Lake has completed its earn-in, Sterling may maintain or increase its 25% carried interest by participating in future exploration and development.
"Sterling's current focus is increasing its silver production and developing its more advanced projects, such as the Sunshine Mine in Idaho", stated Sterling President Ray De Motte. "This agreement with Red Lake Resources allows Sterling to concentrate on these priorities while at the same time advancing exploration on the JE prospect and increasing our knowledge base for the additional 1000 acres of prospects we control in the area."
About Sterling Mining Company
Sterling Mining Company controls the historically significant Sunshine Mine, located in the Silver Valley of Idaho The Company also holds several properties in Mexico, including the Baroness Tailings Project in the Zacatecas silver district, which is in production. Sterling stock trades on the OTC Market under the symbol "SRLM".
FOR FURTHER INFORMATION, visit the Company's website at www.sterlingmining.com or contact:
Sterling Mining Company
www.SterlingMining.com
Raymond De Motte, President
Tel: (208) 666-4070
CHF Investor Relations
www.chfir.com
Nick Kohlmann, M.Sc., Vice President
Tel: (416) 868-1079
nick@chfir.com
If you would like to receive Sterling news via email, please email Alison@chfir.com and specify "SRLM news" in the subject line.
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. |
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| | You can view the Next News Releases item: Thu Jun 1, 2006, Sterling Mining Becomes the Newest Member of the Silver Institute
You can view the Previous News Releases item: Thu Feb 23, 2006, Sterling Mining Appoints Behre Dolbear to Conduct Final Feasibility Study at the Sunshine Mine in Idaho
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