Hidalgo Mining International (HMIT) Announces Plans to Build Pipeline to Lower Production Costs
Hidalgo Mining International, an innovative mining company headquartered in Port Washington, N.Y., announced plans to build a small pipeline to lower production costs.
President Mark Daniel Klok stated: “In light of the extraordinarily high fuel costs, management has been evaluating ways to effectively increase profitability with mining and production expected to begin on the Fifa Land Prospecting Permit in early 2009. There are some additional infrastructure needs which are being reviewed in order to lower the overall fuel consumption cost from the transportation of gold bearing material to be processed.”
Hidalgo is using a mechanized physical separation process for the extraction of gold from its Fifa site. The Company utilizes a combination of extractors to dig and remove the gold rich gravel which is approximately 9 meters deep. The gravel is then trucked to the Company’s processing plant where the gold separation process takes place. The processing facility is approximately three miles adjacent to the region’s main water supply, the Tinkisso River.
The proposed pipeline will transport water directly to the mining operation allowing for the gold separation process to take place on location eliminating the need of driving each load of material back and forth. The Company will be able to improve its operating margins by reducing the amount of fuel consumption, labor costs, and maintenance costs required to operate these heavy trucks.
Mr. Klok further stated, “We are very excited to start the New Year with production at our Fifa site. We have evaluated the cost benefit of building the pipeline and everyone has been extremely supportive and local government has shown nothing but goodwill. With all this in place we are one step closer to achieving our goal of becoming a junior gold producer.”
Hidalgo Mining International (Other OTC:HMIT.PK ), an innovative mining company headquartered in Port Washington, N.Y., strives to increase shareholder value while implementing aggressive plans to target and acquire near term producing mining projects on a global scale. Hidalgo’s management, directors, and advisors have a wealth of experience and knowledge in this rapidly growing industry that will ultimately result in the Company achieving its goal of becoming a medium size producer.
