July 11, 2011
/PRNewswire/ - Hondo Minerals Corporation (OTCBB: HMNC.OB) announced today that it has commenced production at its Tennessee Mine property in western Arizona. During the first half of the year, the company completed all work related to the construction of the plant structure, installed all equipment used for its innovative E-Leach extraction process, and completed all required training and regulatory approvals. The company is now processing ore from the 1 million tons of tailings present on the mine site, producing gold, silver, zinc, and lead.
Production rates are currently at pilot levels, and are expected to ramp to a commercial rate of 150 tons per day over the next six months. Based on the company's analysis of mineral content in the tailings, Hondo expects the tailings to average an approximate yield of 1-3 ounces of gold, as much as 30 ounces of silver along with hundreds of pounds of zinc, and lead per ton. These projections represent the company's best estimate of average yields based on independent study and testing; actual yield could vary materially from these projections.
As of the close of trading on
Friday, July 8
, spot gold was trading at
an ounce, and spot silver was trading at
an ounce with zinc and lead prices at
per pound, respectively.
William R. Miertschin
, Chairman and CEO of Hondo Minerals said, "We are very excited to hit this milestone in the development of Hondo Minerals. After years of preparation, planning, and expense, we are transitioning from the development stage to the operating stage. We look forward to rapid growth in production rates, revenue, and cash flow now as we ramp up the Tennessee Concentration Plant. We are also excited to see the efficacy of our environmentally friendly and cost effective E-Leach extraction technology being verified in commercial production."
About Hondo Minerals