Unico, Inc. Announces Deer Trail Mining Company Agreement to Acquire 70 Additional Utah Mining Claims Covering 1,500 Acresadmin
Unico, Incorporated , a natural resource company in the precious metals mining sector, today announced that wholly- owned subsidiary Deer Trail Mining Company, Inc. has signed an agreement to acquire 70 additional mining claims covering 1,500 acres in Piute County Utah for the purpose of conducting exploration, evaluation, and mining activities, including pre-production feasibility studies and underground mining of the present workings.
The mining claims acquired include the following: Golden Chalice, Silver Chalice, New Oraverde, Turquoise, La Phill, J & N, Gold King, T, Blackspot, T & S, Comeback and Johnson. One area of 50 claims is located south of the Deer Trail Mine, and another area of 20 claims is located on the south-facing slope of Beaver Creek Canyon northwest of the Deer Trail property. These claims are all located on United States Department of Agriculture (USDA) Forest Service and/or Bureau of Land Management (BLM) administered land.
Unico issued the following information on the claims:
The claims cover approximately 1,500 acres along a prevailing northwest to southeast structural and seritically altered trend. This trend includes the Annie Laurie/Sevier Mines to the north and the Deer Trail, Bully Boy, Clyde, Wedge, and Gold Hill mines in the central and southern extensions. The area is covered by Bullion Canyon Volcanics that have been fractured and filled with quartz-carbonate veins, vein quartz and adularia with minor amounts of iron and copper staining. Some areas are highly fractured forming zones of quartz stock work veins.
The area bears many similarities to the Gold Mountain area or Annie Laurie Mine mineralization, which produced over 140,000 ounces of gold from quartz-carbonate, quartz and quartz adularia veins. The origin of these veins is derived from ascending hot water springs associated with underlying intrusive masses.
The southern claims were drilled in the 1980s with a series of shallow holes by American Nickel to test the extent of several northwest striking mineralized structures at the contact of the Bullion Canyon Volcanics and the Tushar Fault. The reverse circulation drilling of 24 holes clearly established that quartz veins were highly anomalous in gold. The underlying sediments have not been tested which could contain deposits similar to the Deer Trail deposit at depth and of the Annie Laurie nearer the surface.
On the Golden Chalice claims, the workings include, but are not restricted to, a tunnel and shaft and large pit showing high-grade silver values, as well as many pits and exposures of other gold and silver prospects with some samples measuring in the hundreds of ounces per ton in silver and several ounces per ton in gold. High-grade gold showings also are known to exist on the Turquoise claims, originally named for a widespread copper-stained area in a large porphyry stock.
The north block of claims prospects yielding samples containing as high as 80 to 90 ounces per ton in silver and several ounces in gold have recently been discovered but have not been assessed in detail. Several of the claims have been noted to host significant bodies of fluorite with erratic gold and silver values, plus very significant uranium. Western Nuclear conducted appreciable exploration on these claims in the 1960s but allowed the claims to lapse when the price of uranium collapsed.
Under terms of the agreement with the leaseholders, Deer Trail Mining Company will hold the leased premises for the purpose of exploring, evaluating and mining all kinds of minerals and ores for a period of approximately three years from the September 20, 2006 effective date of the lease agreement. The Deer Trail Mining Company has the right to extend the term of the agreement for up to fifty consecutive additional one year periods by giving the lease holder written notice of the Deer Trail Mining Company’s election to extend on or before August 1st of each year.
Deer Trail Mining Company is granted the right to purchase all interests of the mining claims during the first five years for a total purchase price of $350,000. Deer Trail Mining Company may also exercise the option to purchase at any time thereafter during any extension period. After the fifth year, the purchase price will be increased by $50,000 per year for each year thereafter.
The Deer Trail Mining Company has paid seven thousand dollars to the lessor to execute the agreement, which constitutes the rental payment for the first year and has agreed to pay additional payments of $7,000 each year on the anniversary date of the agreement. If the Deer Trail elects to extend its agreement for additional terms, the rental payment will increase to $10,000 for the fourth and fifth years. For each extension beyond the fifth year, the annual payment shall increase by 10% per year over the amount of the prior year’s payment.
In consideration for the rights given under the agreement, the Deer Trail Mining Company agreed to pay the lease holder an amount equal to three percent of the gross sales proceeds from all ore, concentrates, and all other productions of mineral resources extracted from the mining claims.
“We are pleased to add these 70 additional mining claims to our subsidiary mining operations in Utah, which are clearly in an area with significant potential from both a historical and geological perspective,” stated Mark A. Lopez, chief executive officer of Unico, Inc. “As with the two previous claims we agreed to acquire in recent weeks, the proximity of these claims to the Deer Trail property expands the company’s presence in the area and allows us to utilize our resources at multiple claims without significant logistical difficulties. Unico plans to operate in this area over a long period and the upcoming completion of construction at the mill and processing facility located at the Deer Trail Mine will further solidify our position.”
“Unico will continue to target additional favorable acquisition opportunities as they present themselves, with the goal of building the company into a major natural resource and mining operation,” added Mr. Lopez.
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About Unico, Inc.
Unico, Inc. (OTCBB: UCOI), 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 three mine properties: the Deer Trail Mine, the Bromide Basin Mine and the Silver Bell Mine. 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.
Contacts: Gemini Financial Communications for Unico, Inc. A. Beyer 951-587-8072 Email Contact
OTC Financial Network Rick McCaffrey 781-444-6100, x625 Email Contact