SOURCE: Unico, Inc.

Unico, Inc.

November 05, 2009 09:00 ET

Unico, Inc. Announces Updated Tonnage Potential Calculations for Mine and Exploration Targets on the Deer Trail Mine Property

SAN DIEGO, CA--(Marketwire - November 5, 2009) - 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.


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
               --------- --------- --------- -------- --------- ----------


 TARGET           TONS      AU        AG        CU        PB        ZN
               --------- --------- --------- -------- --------- ----------

               --------- --------- --------- -------- --------- ----------
 Redwall Ls.   4,000,000
10,100’X       tons 1,10,
 200’X 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
               --------- --------- --------- -------- --------- ----------
 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.


(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

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.

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