Sterling Mining

Silver Stock Report

by Jason Hommel, Feb 10, 2006

Sterling Mining


Sterling Mining is among the most highly leveraged stocks to rising silver prices. (Comparing favorably with Avino)


SRLM.PK (STERLING MINING) (I own shares) Ray DeMotte (
208) 676-0599 -company

about 20 million shares, fully diluted as of Dec. 2005--(To get the latest number, I have to call Ray DeMotte.  Note the date.)
@ $3.60/share
$72 million Market Cap
~185 mil oz. reserves + resource, Sunshine alone
Quote from:
"The prior operator last estimated the mine reserves at 26.75 million ounces of silver, 10.36 million pounds of copper and 7.05 million pounds of lead (or approximately 28.85 million ounces of silver-equivalent), as well as an additional resource of 159.66 million ounces of silver. "
Other properties:
Baroness   15 mil -- tailing project, no further exploration potential, (construction finished, testing beginning)
Tesorito      17 mil -- + exploration potential
San Acacio    14 mil  -- + exploration potential
Total:  231 mil oz. silver
$72 million Market Cap / 231 mil oz. = $.31/oz.
$72 million Market Cap / 550 mil oz. = $.10/oz.  (exploration potential)

At $9.35/oz.,
You get "approximately" 29.9 ounces in the ground for 1 oz. silver's worth of stock.
(Exploration potential is 71.)

Additional comments:  Silver & Sterling Mining - Lou Passi and Jason Hommel -- 01 April 2005

Ray DeMotte really, really understands the silver story, and has been aggressively acquiring silver properties.   Sterling continues to consolidate its land position around the Sunshine mine, and refurbish the mine.

Sterling Mining acquired the Sunshine mine. Sunshine had "more than 360 million ounces of production over the past century" and was one of the big three: Hecla, Couer, & Sunshine. Sunshine went bankrupt. Sterling got the property a few years ago cheap, because they were quick & willing to pay cash. Other buyers wanted to do a full study before making an offer.
The best factors, I feel, are as follows:

1. The Sunshine mine is an existing mine that was mining at a profit. The company went bankrupt, not the mine. So there will be no great capital costs for start up, only minimal costs.
2. The Sunshine sits on 1/2 sq. mile, and was never fully explored. Sterling Mining owns 10 square miles of property surrounding the Sunshine, right in the heart of silver country, the location of CDE and HL, the other two big companies at the top of this list.
3. The management of Sterling mining understands the silver story. They have been acquiring many silver properties since acquiring the Sunshine mine.

4. Sterling mining is now a producer, producing from the Baroness tailings project in Mexico, and taking ½ of the profits, and bringing them home to the U.S.A.

5. Ray Demotte was recently re-elected by 92% of voting shares.

6. Ray Demotte also believes in holding silver, in preference to holding too much paper cash. And is flat out against hedging, and locking in prices for silver sales. In fact, Ray actually had an offer from a buyer to buy silver at 4% over spot, and Ray turned that offer down! What a silver bull!

7. Finally, I’ve been so busy, I’ve been hardly able to keep up with all the bullish developments occurring at Sterling Mining. To get the latest developments, you really need to contact the company, or do your own research.

(I own shares of SRLM.PK, and the company has not paid me to send out this report.)


Before you make any investment in any small silver company that clearly needs to raise capital, especially if you are a large investor, please contact the company directly before excessively bidding up the stock on the open market.


Jason Hommel