Hondo Minerals Enters Into A Cash Purchase Agreement For $2.4 Million Of Additional Processing Equipment
CHLORIDE, AZ, May 9 /PRNewswire-FirstCall/ - Hondo Minerals Corporation (OTCBB: HMNC), announces that it has entered into an agreement to purchase $4 million dollars worth of additional processing equpment for $2.4 million. All of the equipment is virtually brand new with no prior use other than testing.
William R. Miertschin, Chairman and CEO of Hondo Minerals said, "I am pleased to report to our shareholders the acquisition of this equipment which is a near perfect fit for our operations. This will allow us the opportunity to increase our production 10 fold, lower costs, and significantly increase revenue. Because of this, the company may have the ability to reach its production and revenue targets 6 to12 months ahead of schedule."
The initial processing facility is anticipated to begin operations by May 30, 2011. Once complete, the Tennessee Mine processing facility will recover gold, silver, zinc, and other metals. It is estimated that the daily processing capabilities will commence at 10-20 tons per day and increase to 150 tons per day during late 2011 and 350 tons daily in 2012 as the newly acquired equipment becomes operational.
"Our Tennessee Mine property has approximately one million tons of tailings and dumps available for processing This acquisition of additional equipment will allow Hondo Minerals the opportunity to increase processing to hundreds of tons per day," says William R. Miertschin.Hondo's initial independent testing has indicated the Tennessee Mine tailings and dumps could produce an average of 1 oz. to 3 oz. of gold and about 30 oz. or more of silver per ton using our exclusive environmentally friendly technology. At the Tennessee Mine there are approximately a million tons of metal rich tailings and dump material.
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