The world of commodity metals mining is one that involves scale and a fairly strong stomach. Prices of commodities vary quite widely from day to day, making the entire mining management process an exercise in hypertension control. There are, however, certain commodity metals that will always have a market niche to fill. The industrial world just cannot produce without them. This reality is only a small help in the blood pressure control effort, but if an investor can keep it in check, a profit will be eked out over time.
Sterling Mining Company, a base metals exploration and development company, works to exploit and develop silver deposits in Idaho and Mexico. The company was recently acquired by Minco Silver Corporation, trading MSV.TO. The final closing of the deal is expected by the end of the year.
The melding of Minco and Sterling will ultimately yield an operation that works in two of the world’s leading silver mining regions. Sterling has recently (December 2007) reactivated the Sunshine Mine in Idaho, while Minco continues to work a leading silver producing mine located in the rich Fauwan River silver mining district – China. Combined, the two companies are expected to have an annual silver production of 10 million ounces by 2011, and access to an estimated 418 million ounces derived from the combined company’s primary and allied properties.
Although the combined company expects the majority of its efforts to be directed at its two established sites, it does expect quite a bit of work to progress at its affiliated locations. Sterling currently owns or has rights to several claims, including a tailings operation in Mexico and additional claims in Idaho. Minco Silver, in addition to gold-mining rights and being the “exclusive silver mining vehicle” in China, also holds 3 approved permits in excess of 200 kilometers of exploration activity also in China.
The combining of the two companies does appear to give the resulting operation a solid base with less exposure to volatile commodity prices. As silver is a finite resource, supplying a growing and diverse industrial base, Sterling Mining/Minco Silver will ultimately end up as a leader within a productive silver market. The world’s electronics and medical device manufacturers will continue to clamor for this versatile metal, making Sterling/Minco a valuable commodity supplier for the long-term future.
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