Unico, Inc. Announces Results of Behre Dolbear Tailings Evaluation From the Deer Trail Mine
Unico, Incorporated (OTCBB: UNCO), a natural resource company in the precious metals mining sector, today announced results from a tailings evaluation from Behre Dolbear and Company (USA) on geological analysis and evaluation completed at the Unico’s Deer Trail Mine in Marysvale, Utah. The tailings report was submitted as a separate document from the Final Summary Report submitted by Behre Dolbear, which included 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 data from the site.
The tailings evaluation, titled, “Evaluation of the Deer Trail Tailings at the Deer Trail Mine, Piute County, Utah,” was submitted by Behre Dolbear as final to the company on September 18, 2008.
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. Behre Dolbear evaluated the Upper Tailings Dump at the Deer Trail Mine for Unico and its wholly owned Deer Trail Mining Company subsidiary. The study estimates the tonnage of material and the average grades and contained ounces of gold and silver in the Upper Tailings Dump. Deer Trail personnel provided data from two different drilling programs to Behre Dolbear. The two programs covered the same area and were performed in 1990 by Energy Fuels Nuclear, Inc. and in 1993 by Ecology Mining Company. In both programs, the drill holes were spaced approximately 50 feet apart.
The 1990 Energy Fuels drilling program consisted of 64 drill holes along with assays for gold and silver at approximately 5-foot intervals down the hole. In addition to samples taken within the tailings dump, all but two of the holes penetrated the soil below the tailings. Only 39 of the sub-soil locations were assayed, and one location had no silver assay.
The 1993 program by Ecology Mining consisted of at least 51 drill holes in the Upper Tailings Dump. A memo dated February 10, 1994 contains assays for some of the drill holes through DH51. Gold and silver analyses were performed for selected intervals down the holes, but were not performed on each interval. Because of the incompleteness of the data available, Behre Dolbear made no grade estimates for the 1993 program. Tonnages of tailings material were calculated based on the 51 drill holes recorded by Ecology Mining in 1993.
Behre Dolbear’s evaluation focused only on the tonnage of the tailings dump and associated gold and silver grades.
Behre Dolbear used a tonnage factor of 1.22 tons per cubic yard for the tonnage estimates in the report.
Behre Dolbear classifies the tailings material in the Upper Tailings Dump as Mineralized Material estimated to contain approximately 92,150 tons at grades of 0.03 opt gold and 2.66 opt silver. Additional drilling and an economic analysis would be required to classify the tailings as a Reserve. To verify the data, Behre Dolbear recommends that Unico drill ten to fifteen holes distributed throughout the deposit, sample, and assay the drilled material for gold and silver, statistically analyze the data, and compare the results with the results from the 1990 and 1993 drilling programs. Behre Dolbear also recommends that Unico produce a new surface contour map of the tailings as erosion subsequent to the 1990 and 1993 contour maps may have removed and/or redistributed some of the tailings. In addition, Unico should determine a more accurate tonnage factor. All the resulting data, if sufficiently comparable with the 1990 and 1993 data, should be used to estimate tons, grades, and contained ounces of gold and silver. If not sufficiently comparable, the entire tailings deposit should be re-drilled.
An economic analysis using the estimates of tons, grades, and contained metals must be carried out to produce an SEC-compatible Reserve.
The report summarizes the results of Behre Dolbear’s evaluation of the two drilling programs performed in 1990 and 1993 and also shows the results of estimates from others based on those two drilling programs.
“The tailings evaluation provides additional analysis and information which will be taken into consideration as the company moves forward with its project at the Deer Trail Mine,” stated Mark A. Lopez, chief executive officer of Unico, Inc. “The Upper Tailings Dump is one of the areas identified at the site where mineralized material from previous mining and processing activity may be utilized to develop value from current and future operations at the Deer Trail Mine. We intend to follow the report’s recommendations regarding further drilling, sampling and analysis of the Upper Tailings Dump as part of the larger plan for exploration, identification of potential reserves, mining, and processing, at the Deer Trail Mine property.”
More detailed information from the tailings evaluation is included in the company’s recently filed quarterly report on Form 10-QSB for the period ended August 31, 2008.
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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.