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Unico Inc Gallery |
UNICO: Producing Gold & Silver
From Historic Utah Mines
Deer Trail Mine literally a "mountain of metals"
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UNICO, Inc. (OTC BB: UNCN) -- www.uncn.com -- spent 10 years refitting and developing the resource potential of its historic Deer Trail Mine, has fired up its new processing mill and is ready to produce and ship gold and silver concentrates.
Once the mill fully ramps up and can ship its 20-ton capacity, the company will earn $44,000 daily potentially adding up to more than $10-million annually.
"Shipments of our concentrates and revenues are imminent," says UNICO CEO Ray Brown. "The potential of the Deer Trail Mine is much larger than most people think. It's a remarkable resource a mountain of metals"
And the Deer Trail is not UNICO's only precious metals asset. The company either owns or leases (with options to buy) a number of other historic Utah mines that hold real promise for development of existing resources and further exploration.
Valuable Mining Properties
UNICO's Utah precious and base metals properties host an enormous resource potential based on both historic and recently updated estimates of gold, silver, copper, zinc and lead values. The company plans to concentrate its initial development efforts at the Deer Trail Mine to create a solid revenue stream to finance development of its other properties.
Historically, UNICO's Utah mining properties were significant precious metals producers. Idled for many years, the mines are far from played out.
This past spring, twenty-five geologists and mining professionals attending a Utah meeting of the Geological Society of America, visited the Deer Trail and took samples for study. The group concluded that many rich silver, gold, lead, copper and zinc manto deposits remain to be exploited.
The GSA team was excited by the possibility that a much larger feeder system may lie beneath Deer Trail Mountain and could be the source of many of the rich gold/silver and alunite mines in the historic Marysvale District. The Deer Trail mineralization system was likened to the deep copper/gold deposits at El Indio in Chile.
The alunite cap over the Deer Trail deposit is among the purest in the world, according to UNICO, and could indicate a major copper-porphyry system similar to the Tintic District, Kennecott's Bingham Canyon and the Ruth deposit near Ely, Nevada.
- Estimated resource*: 287,420 oz. gold, 27.8 million oz. silver, 65,220 tons lead, and 131,610 tons zinc.
The underground mine is in a halo of gold bearing and base and precious metal manto deposits. Quartz veins contain gold, silver, and minor base metals. Particularly high grades, averaging 0.18 oz/ton gold and 20 oz/ton silver, in the 3400 area of the PTH tunnel are favorable for near-term, cost-effective production. The contained mineralized resource includes a 30,000 ton proven and probable drill-indicated block confirmed by two major mining companies in the 1980s, a projected 120,000 ton block and an inferred block of more than 1 million tons.
The 8600 area of the Deer Trail has an inferred block of 496,000 tons of massive sulfides. UNICO's chief geologist Dan Proctor says other known fissures will substantially increase the mine's potential.
Resources within the original mine workings include lower grade gold and silver mineralization. Old tailings contain 186,000 tons of recoverable ore averaging 0.04 oz/ton gold, 3.6 oz/ton silver and some lead. Old dumps contain about 120,000 tons of gold, silver and lead ores that can be upgraded by screening.
- Estimated resource*: 8,100 oz. gold, 15.7 million oz. silver, 22,500 tons lead, 54,000 tons zinc and 15,350 tons copper.
The Silver Bell's potential as a high-grade silver mine was hampered historically by its high elevation. Recent exploratory work has uncovered silver-bearing ore assaying as high as 120 oz/ton. Every face in the underground mine has mineable ore. The resource is estimated to contain over 450,000 tons based on strike and dip projections, confirmed by two independent engineering firms.
"The mine is in good shape and very mineral rich, maybe the only silver mine left in the Park City district that has never been drilled or adequately explored ," says Proctor.
- Estimated resource*: 372,000 oz. gold.
The Bromide Basin includes at least four mines; the Kimble and Turner, Crescent Creek, Henrietta and the Bromide Mine an underground mine with northeasterly striking veins with breccia pipes averaging 7 oz/ton gold. The vein structure averages 2 feet in width and can be traced on surface for more than 1,800 feet with several visible, gold-enriched outcroppings.
Samples from the main Bromide vein show an average grade of 2.73 oz/ton gold, 7.86 oz/ton silver, and 21.7 percent copper. UNICO is currently mining the vein and plans to process the ore into gold concentrates at the Deer Trail Mill.
"This vein ore is very rich, approximately $1,100 a ton and will need very little prep work," says Proctor.
Proctor discovered a new high-grade gold vein at the Bromide Mine this spring. Initial assays rate the vein at 1.236 oz/ton gold and 0.75 oz/ton silver. The company is planning a drill program to establish proven tonnage prior to developing a full mining plan.
The Crescent Creek mine is adjacent to the Bromide and contains mostly oxide ore averaging over 0.25 oz/ton gold with minor copper inclusions. The underground workings are close to surface.
The Kimble and Turner Mine's underground workings are along a northeasterly striking vein with associated breccia pipes. A 4-foot wide vein extends 400+ feet and averages 2.0 oz/ton gold with some copper.
The Henrietta Mine is a mineralized exposure on surface assaying as high as 3 oz/ton gold. Although overall ore averages are lower, company officials say recoverable tonnages will be high.
*These resource estimates are not proven or probable reserves. They are based on data generated by past producers, independent exploration data and drill intercepts, geological conditions of the area, projections of known mineralized horizons and structures and in house sampling. Reserves will be announced when they have been proven up by the standards of the mining industry.
Production Mill On Stream
Proctor says UNICO focused this summer's work at the Deer Trail Mill on fine-tuning the reagents schemes to produce cleaner, higher-grade concentrates. The final touches on the mill will be completed in September with the installation of sophisticated fluid and volume metering systems. Deer Trail ore is concentrated through both gravity and flotation circuits producing a high grade Pb/Ag concentrate with appreciable gold and a clean marketable zinc concentrate. The gold ores from the Bromide Basin will produce a free milling gold product as well as a gold concentrate that will be sent to a smelting facility.
The company has arranged terms with metals brokers and smelters for the purchase of both lead/silver and gold/silver concentrates. Similar terms for zinc concentrates are pending assay results.
UNICO initially plans to deliver 20 tons of lead/silver concentrate from its Deer Trail Mine, eventually ramping up to 70+ tons a week, including 5 to 10 tons from the Bromide Basin Mines.
"Our unwavering goal has always been the profitable production of gold, silver, lead, copper and zinc concentrates in our new mill. And now we're there!" says Brown.
Investment Considerations
With its milling operation running; miners blasting in the mountain; substantial amounts of ore stockpiled; concentrates bagged pending shipment; and other promising properties poised for development, UNICO is well positioned to take advantage of a price increase in either precious or base metals.
High-level assays of current known resources are a fact. Future drilling and exploration to expand resources and prove up reserves at all UNICO mines are expected to substantially increase the company's value -- and revenues.
UNICO recently secured $550,000 in private financing through a loan from a long-term "bullish" investor. The funds will be used to supplement ore production income and accelerate ongoing development and production of its three mining properties.
"We believe we have a rare mining opportunity. We are very excited about the immediate and future prospects for all three of our mines to resume production, enhance proven reserves and explore new economic ore-bearing zones," says Brown.

UNICO Mines Steeped in Utah Mining History
It doesn't matter which of UNICO's three Utah mines you choose, each is filled with the rich and adventurous history of the early west, its explorers and its intrepid gold miners.
Gold was discovered at the Deer Trail Mine in 1878. During its mining history, apprsoximately 200,000 ounces of gold ranging from 2 to 7 oz./ton and 1.5 million ounces of silver valued at more than $30 million in today's dollars were processed. Exploration programs conducted by Phelps Dodge, Noranda and Goldfields and geologist reports in 1997 and 2002 indicate high levels of ore still remain. UNICO obtained a lease-option in 1992 (renewed in 2001).
The Silver Bell Mine, located in the Wasatch Mountains, was discovered in 1871 and produced more than 100 tons of ore graded at more than 100 oz/ton by 1881. A $250,000 feasibility study by Watts, Griffis, and McQuat commissioned in 1996 concluded the Silver Bell has "great potential". UNICO acquired 100 percent ownership of the Silver Bell in 2000.
UNICO's Bromide Basin Mines in the fabled Henry Mountains includes four major mines and a prospector's lore of a Lost Spanish Gold Mine with legendary rich deposits. The Bromide vein was discovered in 1889 or 1890, and produced about 7,500 ounces of gold in 1892. Breccia pipes assay as high as 26 oz/ton and average 7 oz/ton. UNICO leased the 400-acre mining properties in 2001 and has extracted a 2,500 ton bulk sample that will be processed and tested at the Deer Trail Mill. |
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-- DISCLAIMER --
ADVERTORIAL DISCLAIMER-- UNICO, Inc. has paid a fee to The Bull & Bear Financial Report for the advertorial and for the promotional services provided by The Bull & Bear Financial Report. The directors, employees of The Bull & Bear Financial Report do not own any of the stock of the above-mentioned company.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS -- Certain statements in this document constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: risks inherent in restrictions of foreign ownership; uncertainties relating to carrying on business in foreign countries; the Company's history of operating losses and uncertainty of future profitability, uncertainty of access to additional capital environmental liability claims and insurance; and dependence on joint venture partners. Certain forward-looking statements will be identified by a cross-reference to the Special Note. Forward-looking statements are typically identified by the words: believe, expect, anticipate, intend, estimate and similar expressions, or which by their nature refer to future events. The Company cautions investors that any forward-looking statements made by the company are not guarantees of future performance, and that the actual results may differ materially from those in the forward-looking statements as a result of various factors, including but not limited to, the Company's ability to be able to continue its substantial projected growth, or be able to fully implement its business strategies, or that management will be able to successfully integrate the operations of its various acquisitions.
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