Unico, Incorporated (OTCBB: UNCO), a natural resource company in
the precious metals mining sector, today announced that the
technical staff of its wholly-owned Deer Trail Mining Company
subsidiary has recently completed a series of new comprehensive
geologic, engineering, and economic studies(1) of the potential
tonnages that may exist on four mine and two exploration targets
(Table 1 & 2). The preceding are all located on its Deer Trail
Mine property near Marysvale, Utah.
TABLE 1 - INFERRED TONNAGE & GRADE OF MINE
TARGETS(1a,b,c,d,6,7,8, & 9)
INFERRED
MINE TARGET TONS AU AG CU PB ZN
--------- --------- --------- -------- --------- ----------
Upper Deer 70,0001c
Trail Dumps & 1d & 2 0.040 opt 1.0 opt NA NA NA
--------- --------- --------- -------- --------- ----------
2,800 oz 0.07 M oz
--------- --------- --------- -------- --------- ----------
Upper Deer
Trail Mine 400,0001c
3,300 X & d, 7,
73 X 20 8, & 9 0.100 opt 3.18 opt NA NA NA
--------- --------- --------- -------- --------- ----------
40,000 oz 1.3 M oz NA NA NA
--------- --------- --------- -------- --------- ----------
3400 Area
Lower DTM 496,0001c
4,300 X & 1d, 6,
173 X 8 7, 8, & 9 0.055 opt 8.4 opt 0.29% 1.58% 1.65%
--------- --------- --------- -------- --------- ----------
27,280 oz 4.2 M oz 2.9 M lb 15.7 M lb 16.4 M lb
--------- --------- --------- -------- ---------- ---------
8600 Area
Lower DTM 420,0001c
6,300 X & 1d, 6,
40 X 20 7, 8 & 9 0.099 opt 10.80 opt 0.21% 7.47% 12.76%
--------- --------- --------- -------- --------- ----------
41,580 oz 4.5 M oz 1.8 M lb 62.8 M lb 107.2 M lb
--------- --------- --------- -------- --------- ----------
TOTALS 1,316,000 0.12 M oz 10.1 M oz 4.7 M lb 78.5 M lb 123.6 M lb
--------- --------- --------- -------- --------- ----------
TABLE 2 - SPECULATIVE TONNAGE & GRADE OF EXPLORATION
TARGETS
EXPLORATION SPECULATIVE
TARGET TONS AU AG CU PB ZN
--------- --------- --------- -------- --------- ----------
--------- --------- --------- -------- --------- ----------
Mississippian
Redwall Ls. 4,000,000
10,100X tons 1,10,
200X 20 11,12,13 0.100 opt 15.00 opt 0.60% 5.00% 12.00%
--------- --------- --------- -------- --------- ----------
0.4 M oz 60 M oz 48 M lb 400 M lb 960 M lb
--------- --------- --------- -------- --------- ----------
EXPLORATION SPECULATIVE
TARGET TONS MO W
--------- --------- --------- -------- --------- ----------
Deer Trail
Mtn. Porphyry 40,000,000
5,000 ft diam. tons 1,
14, & 15 0.310% TBD NA NA NA
--------- --------- --------- -------- --------- ----------
248 M lb
--------- --------- --------- -------- --------- ----------
More details as well as supporting figures on the above targets
will soon be posted on Unico's website. A summary of the historical
production from the various mine targets appears below:
1) Upper (Old) Deer Trail Mine -- This oxidized Au-Ag-Pb-rich
manto was discovered in 1878 and operated intermittently until
closed in 1942 by World War II. It is hosted by the Permian
Toroweap Sandstone. Over 138,000 tons grading 1.38 opt Au, 11.49
opt Ag, and 3.26% Pb(3 & 5) was mined from over 6,000 feet of
workings during the 1918 to 1923 primary period of
production(1a,b,c,d). However, one historic report states that
147,442 tons was mined from 1916-1929 having an average of 0.43 opt
Au, 9.5 opt Ag, and 2.5% Pb(4). The historic cut-off grade is
estimated to have been 0.200 opt Au based on historic detailed
grade maps of the mined and un-mined stopes. Statements from former
miners independently confirm this figure. In-house estimated
mining, milling, and haulage costs indicate that grades as low as
0.100 opt Au can be profitably extracted at current metal prices.
Potential remains for extracting mineralized back-fill, slashing
ribs, and discovering parallel and overlying mantos.
2) 3400 Area of Lower (New) Deer Trail Mine -- This portion of
the Lower Deer Trail Mine is comprised by a Zn-Ag-Au dominant
polymetallic sulphide manto hosted by the Pennsylvanian Callville
Limestone. It was developed by over 5,000 feet of workings from
1945 to 1962(1a,b,c,d) and produced about 25,000 tons of
mineralization from three levels averaging 0.171 opt Au, 11.61 opt
Ag, 7.45% Zn, 2.96% Pb, and 0.52% Cu(6). Production ceased in order
to pursue the larger and richer 8600 Area Manto accessed by the
same 9,000 foot long adit. Potential remains open down-dip and can
be pursued through underground development or by drilling.
3) 8600 Area of Lower (New) Deer Trail Mine -- The 8600 Area
Manto of the Lower Deer Trail Mine is a Ag-Zn-Pb dominant
polymetallic manto but is hosted by the Permian Toroweap Sandstone.
It is the un-oxidized extension of the same body that was exploited
in Upper Deer Trail Mine. The 8600 Area is developed by over 10,000
feet of workings(1) and is accessed by the 3400 Area haulage drift.
Approximately 100,000 tons of mineralization from three levels was
direct-shipped to Midvale, Utah from 1964 until 1981 when
plummeting prices forced the mine's closure(1c, 1d & 6). The
grade averaged 0.100 opt Au, 15.00 opt Ag, 12.00% Zn, 5.0% Pb, and
0.60% Cu(5). The working face is 30 feet wide by 10 feet high and
is developed in massive sphalerite and argentiferous galena(1d).
Potential is open down-dip and can best be pursued by advancing the
working face and long-hole drilling. The likelihood for parallel as
well as super- and subjacent mantos in the same formation is also
high.
Much larger more speculative exploration targets exist that have
the strong likelihood of meeting a major mining company's deposit
size, DCF/ROR, and sustained cash-flow criteria. These include the
following:
1) Redwall Limestone Manto Potential -- The Mississippian strata
of the western United States is host to a plethora of small to
medium-sized polymetallic Ag-rich manto-type deposits. Some are
reasonably large. These include those mined at Leadville (40M
tons)(10) and Gilman, Colorado (10M tons)(11), Tintic and Park
City, Utah (approximately 14M tons each)(12 & 13), and
Goodsprings, Nevada. The same strata immediately underlie the
Callville Limestone at the Deer Trail Mine and conceptually may
host similar moderate to large deposits. This seems especially
likely since our property's mines are developed in the Callville
Limestone, Toroweap Sandstone, and Kaibab Limestone but the
Mississippian has historically been a more widespread and
prospective host. Pursuit of this target would require six 1,000 to
1,500 feet DDH that would seek to intersect the target formation
adjacent to favorable structures.
2) Deer Trail Mountain Porphyry System -- There is deep
potential for a large Cu-Au or Mo Porphyry System on the
property(5,9 & 15). The dominant metal within the Deer Trail
Mountain intrusive is nebulous but alteration patterns and
structural features clearly indicate the presence of a large
porphyry system. An over 2,600 foot DDH in Noranda's 1983 program
failed to reach the target. However, the metasomatic mineral
assemblages at the low angle (-26°) hole's terminus suggest that it
was within 3,000 feet of the porphyry body(9). In consequence of
the precipitous drop in molybdenum and other base metal prices in
1983, combined with resultant drastic reduction in exploration
budgets, Noranda abandoned its exploration project at the Deer
Trail Mine. Molybdenum prices following another steep decline in
2008 from historic highs have now recovered much of their value and
Mo Porphyries are projected to once again become attractive
exploration and development targets. Even a small Rico (Silver
Creek), Colorado-sized deposit (40M tons at 0.310% Mo) possesses a
gross value of $4.2 billion at current prices ($17/lb Mo)(14). A
state-of-the art induced polarization (IP) or controlled-source
audio-frequency magneto-telluric (CS-AMT) survey followed by one
3,500 to 5,000 foot DDH would be necessary to begin testing the
system.
On October 27, 2009, Deer Trail Mining Company announced that
the Utah Department of Environmental Quality and its regulatory
agency, the Division of Water Quality, had approved its application
for the construction of a new enlarged tailings pond impoundment.
The company anticipates completion of the tailings impoundment
prior to December 31, 2009. It subsequently will be utilized
immediately to dispose of waste material from one or more of the
mine targets.
"We are pleased to have the updated estimates of the potential
tonnages that may be available to us as we move forward with work
to fully document, as well as possibly expanding, them," said
Charles Madsen, executive vice president for operations of Unico,
Inc. "The new tailings impoundment will assist us with developing
the presently known Deer Trail bodies and targets as we continue to
further define them."
Cautionary Note to U.S. Investors -- The United States
Securities and Exchange Commission permits U.S. mining companies,
in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or
produce. We use certain terms on this website (or press release),
such as "measured," "indicated'" and "inferred" resources, which
the SEC guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC. U.S. Investors are urged
to consider closely the disclosure in our form 10-K which may be
secured from us, or from the SEC's website at
http://www.sec/gov/edgar.shtml.
The tonnage potential and economic study was undertaken by Deer
Trail Director of Engineering Wayne M. Ash (P. Eng.) and Chief
Geologist L. Alex Scarbrough, Jr. It incorporates both historical
and new data on the base and precious metal-bearing mantos that
have been partially mined as well as mine dumps and exploration
targets(2 thru 15). As such, the amounts should be viewed only as
in-house professional estimates of material and values that may be
present and which must be documented by ongoing exploration and
development. The data is only intended to provide an overview of
the potential for multiple targets that exists on the property. It
should also be noted that no formal mining plan is yet in place for
the more advanced mine targets. Additionally, the feasibility of
profitably extracting any mineralization present or which is
projected to exist has only been preliminarily estimated and not
yet fully established by on-site exploitation.
REFERENCED FOOTNOTES:
(1) Internal Deer Trail Mining Company Reports and Spreadsheets
(2008-2009) incorporating geologic & engineering data, grade
& tonnage information derived from historical production and
recent sampling of existing mineralized bodies, inferred reserves
based on dimensions of known and projected mineralized bodies, and
calculated mining, milling, refining, and transportation costs.
Reports include the following:
(1a) Winders, Ed, and Madsen, Charles J., 2009, Unico Investor
Funds Relations: Internal Deer Trail Mining Company Report, 30
October 2009, 16 p.
(1b) Winders, Ed, Madsen, Charles J., Ash, Wayne M., and
Scarbrough, L. Alex, 2009, Funds Utilization Analysis: Internal
Deer Trail Mining Company Report, 27 August 2009, 10 p.
(1c) Ash, Wayne M., 2009, Engineering Analysis of Base and
Precious Mineralization and Potential Reserves at the Deer Trail
Mine: Internal Deer Trail Mining Company Reports, May, June, &
July 2009, 11 Spreadsheets
(1d) Scarbrough, L. Alex and Blanco, Edgar, 2008, Synopsis of
Geology and Mineralization of the Upper (Old) and Lower (New) Deer
Trail Mines, Piute County, Utah: Internal Deer Trail Mining Company
Report, December 16, 2008, 17 p., 5 fig., 10 tbl.
(2) Andrus, J.R., 1990, Deer Trail Mines Report: Internal Energy
Fuels Inc. Memoranda (17 January 1990, 2 February 1990, 12 February
1990, 19 February 1990, 27 February 1990, 26 October 1990), 3
tbl.
(3) Callahan, Eugene, 1973, "Mineral Resource Potential of Piute
County, Utah and Adjoining Area," Utah Geologic Mineral Survey
Bulletin 102, 135 p.
(4) Young, Earl B., 1933, Deer Trail Mine (History, Geology, and
Production 1916-1929): 24 April 1933 Memorandum to E. H. Snyder in
Salt Lake City, Utah, 7 p. 2 tbl.
(5) Beaty, David W., Cunningham, Charles G., Rye, Robert O.,
Steven, Thomas A., and Gonzalez-Urien, 1986, "Geology and
Geochemistry of the Deer Trail Pb-Zn-Ag-Au-Cu Manto Deposit,
Marysvale District, West-Central Utah," Econ. Geol., vol. 81, pp.
1932-1952.
(6) Behre Dolbear & Co. (USA), Inc, 2007, "Relationship of
Stratigraphy and Mineralization at the Lower (New) Deer Trail Mine,
Piute County, Utah - Behre Dolbear Project 06-034," prepared for
Unico, Inc. and Deer Trail Mining Company June 2007, 69 p.
(7) Beaty, David W., Rohtert, William R., and McGrane, Daniel
J., 1982; "Geology and Mineralization of the 3400 Orebody, Deer
Trail Mine (Project 0715)," Internal 1981 Progress Report (May 1,
1982) - Noranda Exploration, Inc., Rocky Mountain District,
Lakewood, Colorado, 29 p., 2 fig., 7 tbl., 9 pl., 10 apx.
(8) Beaty, David W. and Stegen, Ralph J., 1983; "Deer Trail-Red
Fissure, (Project 0715) Final 1982 Report," Internal 1982 Progress
Report (March 15, 1983) - Noranda Exploration, Inc., Rocky Mountain
District, Lakewood, Colorado, 19 p., 9 fig., 3 tbl., 9 pl., 10
apx.
(9) Threlkeld, Bill, Lynch, Willy, and Cox, Greg, 1983; "Deer
Trail Progress Report (07025)," Internal 1983 Progress Report
(December 1, 1983) - Noranda Exploration, Inc., Rocky Mountain
District, Lakewood, Colorado, 14 p., 1 fig., 11 pl., 4 apx.
(10) Tweto, Ogden, 1968, Leadville District, Colorado in Ridge,
John D., ed., Ore Deposits of the United States 1933-1967 -
Graton-Sales Volume I, AIME Spec. Publ., p. 681-705.
(11) Radabaugh, R.E., Merchant, J.S., Brown, J.M., 1968, Geology
and Ore Deposits of the Gilman (Red Cliff, Battle Mountain)
District, Eagle County, Colorado, in Ridge, John D., ed., Ore
Deposits of the United States 1933-1967 - Graton-Sales Volume I,
AIME Spec. Publ., p. 641-664.
(12) Morris, Hal T., 1968, The Main Tintic Mining District, Utah
in J.D. Ridge Editor, Ore Deposits of the United States -
Graton-Sales Volume I,, AIME Spec. Publ., p. 1043-1073.
(13) Barnes, Marvin P. and Simos, John G., 1968, Ore Deposits of
the Park City District with a Contribution on the Mayflower Lake,
1967, in Ridge, John D., ed., Ore Deposits of the United States
1933-1967 - Graton-Sales Volume I, AIME Spec. Publ., p.
1102-1126.
(14) Scarbrough, L. Alex Scarbrough, 2009, Compilation of North
American High-Fluorine (Climax-type) Molybdenum Deposits: Internal
Deer Trail Mining Company Memorandum, July 23, 2009,
Spreadsheet.
(15) Bennett, Robert E., 2000, Marysvale Project, Piute County,
Utah: Internal 1999 Annual Report (1 December 2000) - Tullaree
(USA) Inc, 165 p., 59 fig., 1 tbl., 21 pl., 10 apx.
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About Unico, Inc.
Unico, Inc. (OTCBB: UNCO) 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 two mine properties: the Deer
Trail Mine and the Silver Bell Mine. Unico has also announced
agreements to acquire over 70 additional mining claims in the area
of the Deer Trail Mine including the Clyde and Crown Point mining
claims. For more information, please visit www.unicomining.com.
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.
Contact: Gemini Financial Communications, Inc. Investor
Relations 888-528-0883 Email Contact