Unico, Incorporated (OTC BB:UNCN.OB), a natural resource company in the precious metals mining sector, today updated shareholders on progress of reconstruction of the mill and processing facility at the Deer Trail Mine in Marysvale, Utah. Reconstruction of the mill and processing facility is designed to improve both efficiency and capacity in processing operations at the Deer Trail Mine as it begins processing stockpiled material currently present on the property. The facility is also expected to be utilized for material harvested from future mining programs at the Deer Trail Mine and other Unico subsidiaries.
A new photo gallery of the additional reconstruction work have been added to the Unico website in the “Media” section at www.uncn.com/news/othermedia.asp.
Included in the recent construction is completion of the fine ore hoppers, which will be placed into their concrete foundation. A thirty thousand gallon steel tank, one-half inch thick, has been purchased and moved onto site. The tank was split in two equal pieces measuring 16 feet tall and 11 feet wide. A 100-ton crane has been contracted to hoist the hoppers and the tank into place on their concrete foundations, and this work is scheduled for completion within the next week. Rubber Engineering has made their final measurements and fitted the templates, and the fabrication of the ball mill liners is near completion. The ball mill bearings have been sent in to Bonneville Machine in Salt Lake City to be machined. They are expected to be delivered next week.
The company has purchased a 2001 Caterpillar 938g loader, which will primarily be used for feeding the mill. A 2000 Case 9030B excavator has also been purchased, and is now being used for the screening operation. The ground has been cleared and leveled for installation of belt line to the ore silos. Two Helmick 36″ by 50′ conveyors with a weight tech belt scale were purchased to transport the ore from the feed bin to the fine ore bins and a feed bin manufactured by Industrial Feeder was also purchased. All leg supports have been engineered and built to support the conveyers to the fine ore bin.
Once the mill is operational, Unico’s wholly owned subsidiary Deer Trail Mining Company, LLC will begin processing the stockpiled dump material and sell the concentrates in fulfillment of the company’s five-year purchase contract with PGM, LLC, a private subsidiary of Polymet Corporation. Terms of the agreement include a monthly purchase quantity of 150 tons for the first 6-9 months and increases to 300 tons through the duration of the five-year term. Unico has estimated that the gross cash flow produced from the PGM contract could range from $125,000 up to $450,000 per month.
“We continue to be pleased at the progress on reconstruction and improvement at the mill and processing facility,” said Mark A. Lopez, chief executive officer of Unico, Inc. “With the ongoing screening of material from the first targeted Upper Dear Trail Mine area, as well as the longer-term planned mining activity at the Deer Trail Mine, there should be a steady supply of available feed for the mill for the foreseeable future.”
Unico recently announced that the Deer Trail Mining Company, has initiated screening plant operations at the upper Deer Trail Mine, and that material is being run through the screening plant and moved to the mill in preparation for further processing. In total, the company has identified approximately 80,000 tons of material from this area, which it plans to screen and process at the Deer Trail mill facility. Historically, the material mined in this area has contained economical values of both gold and silver.
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About Unico, Inc.
Unico, Inc. (OTC BB:UNCN.OB – News) is a publicly traded natural resource company in the precious metals mining sector that is focused on the exploration, development and production of gold, silver, lead, zinc, and copper concentrates at its three mine properties: the Deer Trail Mine, the Bromide Basin Mine and the Silver Bell Mine. For more information, please visit www.uncn.com.
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and such Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operation results to vary significantly from those in prior periods, and those projected in forward-looking statements. Information with respect to these factors, which could materially affect the company and its operations, are included on certain forms the company files with the Securities and Exchange Commission.
Gemini Financial Communications for Unico, Inc.
OTC Financial Network
Source: Unico, Inc.