Unico Incorporated UNCN, which focuses on the production of ores and precious metals in the U.S., today
announced that the Deer Trail Mining Company, LLC, a wholly owned Unico
subsidiary, has reached several initial milestones in the reconstruction of
the mill and processing facility at the Deer Trail Mine in Marysville,
Utah. Once the improvements are complete, current stockpiles of precious
metal bearing ore can be processed and shipped, providing what is expected
to be a six-figure monthly revenue stream for the Deer Trail Mining
Company.
In September 2005, Unico entered into a five-year purchase contract with
PGM, LLC, a private subsidiary of Polymet Corporation, for the purchase of
precious metal bearing concentrates. 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 this contract could range
from $125,000 up to $450,000 per month.
"Completion of the mill and processing facility is directly tied to
near-term revenues for the company, so each of the steps in the
reconstruction process is significant," stated Unico chief executive
officer Mark A. Lopez. "By upgrading the mill and processing facility, we
will not only gain the ability to fulfill the monthly PGM contract to sell
precious metal bearing ore from the Deer Trail facility and secure a
significant, regular revenue stream, but several of the steps will also
allow us to control costs associated with running the facility, further
improving the company's bottom line."
Included in the work that was just completed is the pouring of the final
lift of concrete for the recently purchased fine ore bins. The final
engineering and design work for the ore hoppers are also now complete. The
required hopper steel is expected to be delivered by the beginning of April
with construction scheduled to begin shortly thereafter.
Insulation has been installed throughout the interior of the mill facility,
which will dramatically reduce the heating cost to operate the facility
during colder months and reduce the overall energy demand inside the mill
site. Additional conveyor belts were purchased to upgrade the screening
plant, located in the Upper Deer Trail area of the mine, and the screening
plant is now complete and operational.
Work is underway to complete additional employee work facilities at the
mill site. This will allow a better working environment for employees as
the company prepares to hire additional workers to operate the mill. A new
permit has also been filed to install a new septic tank, leach lines, and
additional plumbing needed to accommodate some of these facilities on site.
Several additional improvements are anticipated for the coming weeks.
"Considering the highly favorable metals prices currently being paid for
gold, silver, lead, zinc and copper, completion of the Deer Trail mill and
processing facility and initiating shipments of ore from existing
stockpiles will remain a primary focus of Unico's efforts," added Mr.
Lopez.
About Unico Inc.
Unico Inc. (www.uncn.com) is a publicly traded company incorporated in
Arizona that is focused on the production of ores and precious metals such
as gold, silver, lead, and zinc at its three mine properties: the Deer
Trail Mine the Bromide Basin Mine and the Silver Bell Mine.
Forward-Looking Statements
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.
Contacts:
Gemini Financial Communications for Unico, Inc.
A. Beyer
951-587-8072
Email Contact
www.uncn.com
OTC Financial Network
Rick McCaffrey
781-444-6100, x625
Email Contact
www.otcfn.com/uncn
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