Dallas, Texas (November 21, 2011) – StockGuru Shines its Spotlight on Hondo Minerals Corporation (OTCBB: HMNC). The Company announced Friday an updated progress report as it prepares for commercial scale production at its Old Tennessee Mine in Chloride, Arizona. The company is completing construction of its first commercial scale extraction plant that will be used to process the one million ton tailings pile present at the mine. The company intends to extract gold, silver, zinc, lead, and other metals that it believes to be present in the pile. The Company closed on November 18, 2011, at
Production Plant Status
Since the last update, the company took delivery, installed, tested, and is now operating all equipment necessary for commercial scale production of the leaching step of the extraction process. Leaching vats were modified to remove agitators and add aeration systems to improve the consistency of the leaching process. The company is now able to leach four ton batches.
The company took delivery of production scale ELeach solvent generators, and is now installing and fine-tuning them. Each generator can produce 200 liters/minute of the high pH electrolyzed water that is the key technical innovation of the ELeach process. Two machines were delivered from Innovative Designs and Technology (Japan), at a cost of over $250,000 each. The company expects the generators to be fully installed and operational in December. Until the large generators are operational, the company is using its small lab-scale solvent generators (4 liters/minute) to test and refine the leaching process step.
The company has ordered, and is awaiting delivery of, the production scale electroplating systems known as RenoCells. Electroplating is a standard process to remove metals from the pregnant solution created by the leaching process step. Electrical current is applied to a conductor, which causes the metal to precipitate on the conductor. The conductor is then burned away to leave metal.
The RenoCell is a proprietary machine which performs electroplating on a carbon mesh. The company is using the RenoCell rather than traditional electroplating systems because of the RenoCell’s ability to electroplate in a three dimensional environment, which increases efficiency. Hondo expects the RenoCell systems to be installed and operational within three weeks after delivery. Until volume RenoCells are installed, the company is extracting metal in very small batches with its lab-scale system.
Bill Miertschin, Chairman and CEO of Hondo, said, “We are extremely happy that all of our leaching equipment has arrived, and that our leaching process step appears to be performing above expectations as we bring it into operation.”
Production Plant Status Table
| Process Step | Purpose | Equipment | Vendor | Design | Ordered | Delivered | Installed | Operating |
| Dig | Move tailings into plant | Excavators | Caterpillar | X | X | X | X | X |
| Mill | Resurface tailings for faster leaching; mill dump material | Crush circuit | Rikmat Plada | X | X | X | X | X |
| Solvent | Produce ionized water for leaching | ELeach Generators | IDT USA | X | X | X | On going | On going |
| Leach | Leach metals from tailings into solution | Leach tanks | In-house | X | X | X | X | X |
| Leach Solution Storage | Store Leach Solution | Tanks | In-house | X | X | X | X | X |
| Leach Solution Filter | Remove particulate matter | Filter | In-house | X | X | On going | ||
| Precipitation | Extract metals from solution into solid form | RenoCell | Renovare | X | X | On going | ||
| Incineration | Remove metal from RenoCell | Roaster | In-house | X | X | X | On going | On going |
| Cast | Create salable form for metal (ingots, bars) | Casts | In-house | X | X | X | On Going | On going |
On-Site Lab Status
During the last month, the company also completed its on-site, self-contained laboratory in Chloride. The final equipment installed included two spectrometers as well as traditional assay equipment. With the lab fully outfitted, the company can replicate its proprietary ELeach extraction process on a small scale, which enables quick testing of proposed process improvements. The spectrometers enable technicians to closely monitor the production extraction process, test optimization strategies on-site, and research prospective properties with in-house assay work.
Business Model Status
The company is the exclusive licensee of the ELeach process from IDT USA, and intends to sublicense the process and resell equipment to other mining operations. The company continues to introduce the ELeach process to potential customers. The company expects that potential customers will independently evaluate the efficacy of the process on their unique ores. The company cautions that the sales cycle may quite lengthy, and that it is possible that no licenses or sales could result from this effort.
Stock Status
The company continues to intend to list its shares on the American Stock Exchange as soon as practical. A listing involves satisfying a number of regulatory requirements, including SEC filings, capital adequacy, and minimum levels of trading volume and price. There is no guarantee that the company will be able to meet these requirements and achieve the listing. The company is evaluating potential investment banking relationships to assist in implementing strategies to achieve the listing, as well as increase liquidity and research coverage.
About Hondo Minerals
Hondo Minerals Corporation is engaged in the acquisition of mines, mining claims and mining real estate in the United States, Canada and Mexico with mineral reserves of precious metals or non-ferrous metals. Hondo owns the Tennessee and Schuylkill Mines in Chloride, Arizona. The Tennessee Mine was the largest producing silver mine in Arizona history. The Tennessee Mine operated from the late 1800s until 1947 producing lead, zinc, gold and silver. The Company also owns numerous other mining claims in the U.S. Southwest, which are being evaluated for additional reserves.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including the Company’s beliefs about its business prospects and future results of operations. Some factors that could cause actual results to differ materially include economic and operational risks, changes in anticipated earnings, continuation of current contracts, and other factors detailed in the Company’s filings with the Securities and Exchange Commission, including its most recent Forms 10-K and 10-Q. The Company forecasts provided above are dynamic and therefore refer only to this release date. The Company does not undertake to update any forecasts that it may make available to the investing public.
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