Sterling Mining Suspends Production at Sunshine Mine


After re-commissioning the Sunshine mine earlier this year, Sterling Mining recently suspended mining.
During mid-September, Sterling Mining Co. announced it would suspend commercial production activities at the Sunshine mine in Idaho. Since 2003, Sterling Mining staff and employees have been engaged in rehabilitating and resuming production at the Sunshine mine However, despite resuming production in late 2007, the company said it had encountered a series of unforeseen and unavoidable delays. Production through the end of August totaled approximately 354,000 oz of silver, which is substantially less than management’s expectations and less than what is required for self-sustaining operations. This, combined with volatility as it relates to precious metals stocks, ultimately prevented it from obtaining the financing required to continue operations at the current level. The workforce was to be immediately reduced by approximately 60%.

“This has been an extremely difficult decision to make and we share the disappointment of our employees and the local community, but we believe this is the only reasonable course of action at this time,” said Sterling’s Interim President, Ken Berscht. Sterling said it continues to view the Sunshine mine as a tremendous resource and will apply its limited resources to maintaining the mine, continuing to dewater the mine, and pursue a limited exploration plan. It also warned that there was no assurance as to if and when market conditions will improve and additional financing will be secured, so the company is unable to make any prediction or estimate with respect to the resumption of full operations at the mine.

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