Gold, Silver PM's Rich Mines, Utah

[Hilander]

List of Work Completed:

SUMMARY
The following work is either complete or currently underway:
• The new electrical substation will supply up to 2.5 megawatts of electricity to power
mining and processing activities at the site.
• The main substation supplies the 1.5 megawatts of power required to operate the mill and processing facility
• An additional megawatt of excess power capacity is available for future upgrades to the system & future mining claims in the area.
• The secondary substation and all major electrical connections completed.
• Power is now available inside both mill buildings at the site.
• Above-ground stockpiles of material at the site is the immediate target of processing operations.
• Atlas Fausett Contracting is performing underground mine maintenance work including portal and stope rehabilitation.
• Currently strategizing additional & future planned mining operations.
• Onsite metallurgical and geological work is being done.
• Mining will be done, all underground, with the exception of the processing of the dumps from the upper Deer Trail Mine area.
The underground mining operations are to be conducted via the PTH tunnel. Ore will be brought to the surface from the PTH portal.
Ores will be transported to the mill site, approximately .75 miles east of the Deer Trail Mine, where they will be crushed and processed.
The final concentrates will be bagged and shipped to be custom smelted by outside sources.
• The State of Utah’s Division of Oil, Gas and Mining (DOGM) granted formal approval of
Unico’s amended Large-Scale Mining Plan for the Deer Trail Mine in April 2005.
• The amended Large-Scale Mining Plan allows Unico to expand its scope.
It may include surface activities & land for exploration, development or extraction of a mineral deposit including
but not limited to, surface mining, on-site transportation, concentrating, milling, evaporation and
other primary processing.
•  Installed a new heated water pumping system.
• A water transportation truck was purchased.
• 4,000 ft of new water line was installed to supply the water needed for the underground drill program and future mining activities.
• Through its operations, all water will be recycled through the concentrating process, additional water coming from the freshwater makeup pond or decanted water from the surface of the tailings pond. Water from Cottonwood Creek will be used in the milling circuit.
• The current area of disturbance filed by the company is 12.81 acres including ponds, dumps, mining and processing facilities. The company has the ability to increase this amount as the demands of the project dictate. The tailings are stored in a HDPE lined pond approved by the Division of Water Quality. The mine also has an approved Air Quality permit.
• Hired Talon Resources, Inc. to provide alternative miner rescue capabilities in connection with its mine rescue team and has recently completed its inspection of the underground mining activity in the PTH Tunnel. Talon Resources provides a wide variety of services to the industry including environmental assessments and permitting, construction inspection, surveying, engineering, instrument calibration, permit tracking, surveys for landfill and hazardous waste sites. They also provide mining and other subsurface location maps and global positioning system surveys.
• “The ability to expand the size of its mining operations will highly complement many other activities at the DT Mine, including the Phase II diamond-core drilling program currently underway inside the PTH Tunnel.
• “The Phase II underground diamond core drilling program at the DT Mine is another positive milestone that Unico has reached since it initiated work at this site last year. Through our continued progress in this phase, we expect to not only determine the best locations for future mining activity, but also ascertain the quantity and quality of ore deposits in order to establish certified reserve calculations for the Deer Trail Mine.”
• The Phase II underground diamond core drilling is targeting known mineralized horizons and is seeking to discover new horizons of mineralization in and around the main ore channel of the Deer Trail Mine. Among other zones, the Callville Formation is one area that has been identified in this phase. The program is also slated to penetrate the underlying Redwall unit, which is viewed by the Company’s geologists to be a highly favorable host for mineralization and could potentially be more significant than either the Callville or the Toroweap formations. Historically, these formations are the only two stratigraphic horizons exploited by any mining activities at the Deer Trail mine.
• Preparations are now complete to re-open the PTH Tunnel and accommodate the drilling program inside the DT Mine.
• “We will continue to comply with DOGM's requirements for permitting and posting of the
required reclamation surety as we prepare for processing operations at the mill and processing
facility and future underground mining activities at the Deer Trail Mine,” stated Mark A. Lopez,