Nice. I would call it a ‘dipper’ and used for serving liquids from a larger vessel into cups or glasses. Typically for thinks like hot toddies and punches.
Definitely NOT sterling and the lions passant are just for show, with no meaning in relation to silver fineness.
The 'S' between two lions (and the initials 'G.S.') are for George B. Sharp of Philadelphia, but it’s a maker mark for silver plate, not a hallmark for silver. I can’t reliably read the patent date, which you say is ‘1862’. It looks more like ‘1868’ to me but I’m sure you can read it better than I can from a photograph. Sharp was active in the 1850s, working exclusively as shop superintendent for the firm Bailey & Co. but then opened his own workshop in 1867 (using the same mark) and went out of business in 1874.