Sterling Mining Company
OTC Bulletin Board : SRLM

Sterling Mining Company

September 28, 2007 09:36 ET

Sterling Mining Begins Processing Ore Through Sunshine Mill

WALLACE, IDAHO--(Marketwire - Sept. 28, 2007) - Sterling Mining Company (OTCBB:SRLM) (FRANKFURT:SMX) today reported that its Sunshine Mine milling and concentrating facility is operational and has commenced processing Sunshine vein ore from the Mine's Upper Country development.

Ore stockpiled from approximately 300 feet of drifting on a new portion of the Sunshine vein between historic Polaris and Sunshine Mine workings is being processed through the facility. This ore, accessed from the new Sterling Tunnel, was exposed during exploration cross-cutting in June and July. Sampling by Sterling's geologists indicates a vein grade of 33.7 ounces per ton silver over an average of 0.9 feet true vein width over the entire length of the exploration drift. A second cross-cut is being excavated to the west that will allow for drifting on an additional 400 feet of the vein structure. Drifting has also commenced in the Polaris cross-cut 1,000 feet to the east which is accessed by rail from the Silver Summit Tunnel.

The mill is currently using the # 3 ball mill to process ore while renovation of the # 1 and # 2 ball mills is being completed prior to forecasted resumption of production in December. A new conveyor system has been installed at the Jewell Shaft that allows introduction of Upper Country ores directly into the mill coarse ore bin.

"Having the mill once more operational achieves one of the key milestones in the process of returning the Sunshine mine to sustained production," said Sterling's General Manager, Mike McLean. "The mill crew has done a remarkable job in this effort. We are now able to process new upper country ore in batches of several hundred tons at a time."

The last remaining key milestone is rehabilitation of the Silver Summit shaft. So far, the shaft repair crew has completed work on and above the top shaft station and approximately 200 feet vertically down the shaft since re-commissioning the hoist on September 10th. Once rehabilitation of the Silver Summit shaft is complete to the 3000 level, the Mine's secondary escapeway, required by federal law, will be back in place. At that time, crews will restore utilities, re-establish repair shops, and move diesel-powered mining equipment underground.

Returning the Sunshine Mine to sustained production is forecasted for December with ore production from 3100 and 2700 level mining areas.

About Sterling Mining Company

Sterling Mining controls the Sunshine Mine, currently forecasted to begin production in December 2007, and related exploration lands in the prolific Silver Valley of northern Idaho. The Company also holds several silver properties in Mexico, including the Barones Tailings Project in the Zacatecas Silver District. Shares of Sterling Mining Company trade on the OTC Bulletin Board under the symbol "SRLM" and also on the Frankfurt Stock Exchange under the trading symbol "SMX".

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Cautionary Language and Forward Looking Statements

This press release may contain "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the Canadian securities authorities.

This press release does not constitute an offer to sell or a solicitation to buy securities, and contains forward-looking statements regarding the Company within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements are based on assumptions that the Company believes are reasonable but that are subject to uncertainties and business risks. Actual results relating to any and all of these subjects may differ materially from expected results. Along with additional underground rehabilitation and restoration of site facilities, the timetable for the continuing work program anticipates production beginning in December 2007. If we are able to stay on schedule with the mine work and obtain the funding, equipment, and qualified operations personnel as needed for the work program, we believe production by December is doable. Factors that could cause results to differ materially include economic and political events, the ability to raise capital in the financial markets, and other factors discussed in the Company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2006 and subsequent 10-Q and 8-K filings.

Contact Information

  • Sterling Mining Company
    Raymond De Motte
    (208) 699-6097
    Sterling Mining Company
    Monique Hayes
    (208) 699-6097
    CHF Investor Relations
    Cathy Hume
    (416) 868-1079 x231