Unico, Inc. Announces Results From Geological Work Conducted By Behre Dolbear and Company at the Deer Trail Mine
Unico, Incorporated (OTCBB: UNCO), a natural resource company in the precious metals mining sector, today announced results from the Final Summary Report submitted by Behre Dolbear and Company (USA) on geological analysis and evaluation completed at the Unico’s Deer Trail Mine in Marysvale, Utah. The report includes the results of logging and splitting work on core samples taken from the underground diamond core drilling program conducted at the Deer Trail Mine in 2005, as well as additional reports and data collected by Unico, its wholly owned Deer Trail Mining Company subsidiary and other companies which conducted work at the Deer Trail Mine since 1945.
In March 2006, Deer Trail Mining Company entered into an agreement with Behre Dolbear to conduct geological services and consulting at Unico’s Deer Trail Mine in Marysvale, Utah. A report titled “RELATIONSHIP OF STRATIGRAPHY AND MINERALIZATION AT THE LOWER (NEW) DEER TRAIL MINE, PIUTE COUNTY, UTAH (BEHRE DOLBEAR PROJECT 06-034)” was submitted by Behre Dolbear as final to the Company on September 18, 2008.
Unico engaged Behre Dolbear as of March 15, 2006 to lithologically log 7,235 feet of drill core at the Deer Trail Mine, select samples for analysis, submit those samples to a laboratory for analyses, and evaluate and interpret those logs and analyses. Deer Trail Mining Company and Behre Dolbear agreed to a revised and expanded work scope in Work Change Order No. 1 in a letter dated November 7, 2006. That Work Change Order stated that Behre Dolbear’s ongoing work must have the primary objective of adding value to the Deer Trail Mine and related project assets in the short term. The work change order included provisions for completing the logging, correlating, and summarizing the results of the logging and analyses, and correlating that data with data from past drilling and mining to locate and model, to the extent possible, potentially mineable mineralization. The work change order also included provisions for evaluating the volume, tons, and grade of a tailings deposit at the mine.
Under a contract with Deer Trail Mining, Connors Drilling, LLC drilled 7,235 feet of BQ diameter (1.433 inches) core in 13 holes (UDDH #1-13) at various inclinations and azimuths from three drill stations in the Patrick Thomas Henry (PTH) Tunnel (actually an adit) in the Lower Deer Trail Mine which concluded in October 2005. This is the core that Behre Dolbear was engaged to log, analyze, and evaluate.
The report states that Behre Dolbear’s work yielded three targets within the PTH Tunnel of the Lower Deer Trail Mine that may merit further exploration. Behre Dolbear believes that there is the possibility that with additional successful follow-up drilling, a resource base may eventually be established within the PTH Tunnel. The components of this potential resource base are composed of stratabound, multiple thin (less than 10 feet), moderate- to high-grade zones as well as lower-grade (10 to 30 foot) zones and horizons of base and precious metals mineralization. Two of these are hosted by the Callville Limestone and one occurs in the Toroweap Sandstone.
Behre Dolbear’s field work on the project took place between March 23, 2006 and March 3, 2007 and resulted in the generation of a large amount of stratigraphic and analytical data. That data were compiled and evaluated by Behre Dolbear at the Deer Trail Mine and in Denver, Colorado. This report is based on 1) on-site logging of 7,235 feet of underground core; 2) evaluation of 978 individual sample analyses and assays from 2,021.5 feet of the above core; 3) development of a detailed stratigraphic succession for the Pennsylvanian Callville Limestone and its integration with the mineralized intercepts from the core drilling; 4) review of all pertinent reports and other data related to past exploration at the mine by other companies since 1945; 5) meetings and discussions with and data from the Unico, Inc. and Deer Trail Mining personnel; and 6) a limited review of the published literature on the geology of the region, district, and the Marysvale, Utah, area.
Following logging, sample selection, and splitting of the core by sawing at the Deer Trail Mine the samples were sent to the ALS Chemex (Chemex) laboratory in North Vancouver, British Columbia, for sample preparation, analyses, and assays.
The report shows that significant mineralization in most of the holes is confined to relatively narrow intervals ranging from 1.0 feet to 10.6 feet. The thickest intercept with significant mineralization is in UDDH 12 at 55.2 feet. The intervals are uncorrected for the true widths of the intercepts and will all be thinner than stated, some possibly as much as fifty percent thinner. Overall, silver contributes the most value of the metals with zinc second and gold, copper, and lead contributing subordinate values. In some of the intervals, the silver and gold are high but the base metals are low. Copper contributes more value than zinc in some of these intervals. Only one of the intervals (UDDH 11 at 105.0 to 110.6 feet) has high values in all of the metals. The highest gold and silver values are in UDDH 1 (5.273 ppm Au=0.167oz/t Au; 366.9 ppm Ag= 10.71 oz/t Ag), and UDDH 11 (4.564 ppm Au= 0.133 oz/t Au; 585.1 ppm Ag= 17.08oz/t Ag).
In the “SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS,” the report states that Behre Dolbear’s work yielded three targets within the PTH Tunnel of the Lower Deer Trail Mine that may merit exploration. Two of these are hosted by the Callville Limestone and one occurs in the Toroweap Sandstone.
The 3400 Area is the most prospective of the three potential exploration targets. Behre Dolbear defines the 3400 Area as encompassing the 3400 East Stope, the approximately 200 horizontal feet between it and UDDH #11 and #12 and the immediate environs of the latter 2 holes. The target is the MQ/BSZ Member of the Callville Limestone, particularly the mineralized zones occurring at the MQ/BSZ’s upper and lower extremities that respectively correspond to the 3400 East Stope and Rosa de Marcos Zones. That span of mineralized strata is called the MQ/BSZ Horizon.
The potential of the 3400 Area is suggested by a number of factors, including the fact that underground workings already exist in the favorable MQ/BSZ Horizon in the 3400 Area. The favorable horizon can be drilled with relatively short holes, making the 3400 Area a more prospective exploration target than the 4400 Area.
To decide if exploration in the 3400 Area mineralization is warranted, initial attention should focus on determining if the intercepts in UDDH #11 and #12 within the Rosa de Marcos Zone, the DeBie Zone, and the 3400 East Stope Zone are economic. If they are, follow-up drilling should initially key in on those two holes, preceded by underground surveying, mapping and sampling and development of cross sections at right angles into a three-dimensional model.
The 4400 Area is the second of the potential exploration targets. The main targets are hosted by the MQ/BSZ Horizon. These targets are located approximately 200- to 300-feet below the main level of the PTH Tunnel. Specific exploration targets in the MQ/BSZ Horizon are shown by holes UDDH #1, #2, and #3. In addition to the Potentially Mineable Intercepts located here, many of the Significantly Mineralized intercepts drilled at this location may be laterally correlative with thicker intercepts, thus expanding the zones where Potentially Mineable mineralization may exist. Exploration in the 4400 Area would be contingent upon developing mineral resources and mineral reserves in the 3400 Area and successfully mining them.
If expanded work in the 4400 Area is justified, it should focus on the MQ/BSZ Horizon and entail the same surveying, mapping, sampling, and development of a three-dimensional model as recommended in the 3400 Area. In particular, the Noranda drill logs should be reinterpreted and correlated with the Callville Limestone stratigraphy defined by Behre Dolbear. Deeper mineralization in the CBA Informal Member of the Callville Limestone is another potential exploration target in the 4400 Area.
The 8600 Area is the third potential exploration target. Mineralization is hosted by the Toroweap Sandstone rather than the Callville Limestone.
More detailed information from the Final Summary Report is included in the company’s quarterly report filed on Form 10-QSB for the period ended August 31, 2008.
A tailings evaluation from the project is the subject of a separate report titled “Evaluation of the Deer Trail Tailings at the Deer Trail Mine, Piute County, Utah” and was submitted by Behre Dolbear as final to the Company on September 18, 2008. A release discussing the tailings evaluation is expected to be released in the next several days.
“We are pleased to have received the final summary report as submitted by Behre Dolbear, and look forward to fully utilizing the information contained in it to influence the direction of current and future operations at the Deer Trail Mine,” commented Mark A. Lopez, chief executive officer of Unico, Inc. “Beyond the three target areas identified in the report, we expect that as additional exploration and resource definition work is undertaken, additional mineralization targets may be identified. We intend to follow the report’s recommendations pertaining to mining and the identification of reserves in order to capture the full value of the Deer Trail Mine property.”
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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. The company has also announced agreements to acquire over 70 additional mining claims including the Clyde and Crown Point mining claims. In August 2007, Unico announced that its wholly owned Deer Trail Mining Company subsidiary had completed the purchase of the Deer Trail Mine from Crown Mines, LLC. For more information, please visit www.unicomining.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.
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SOURCE: Unico, Inc.