LOS ANGELES, Oct. 21 /PRNewswire/ -- The gold and sapphire mine UC Hub owns in Montana is a tremendous asset and should be a large income producer for the company. All of the tests run so far have shown that the mine should be prolific in El Dorado Bar/Missouri River sapphires, some of the best sapphires in the world. The mine also appears to be well enriched with gold. In the company's test run of the virgin soil (never been mined) there was approximately one ounce of gold extracted, possibly more, per 100 yards of dirt, and one half ounce to one and one half ounces of gold per 100 yards of dirt in the tailings (previously mined). This is very meaningful for the company and its shareholders and will potentially be very effective at helping the bottom line.
Through during the test run of the virgin soil the company was only looking for gold, the manager of the operation (mine) took a small sampling (2 1/2 gallons) of the soil that was run through the wash plant to sift through for sapphire content. In sample, (one half of a 5 gallon paint bucket) the manager extracted 239 carats of sapphires and one of those sapphires was 13.3 carats. Missouri/El Dorado Bar sapphires that are large stones range in wholesale cut pricing from $600 per carat to several thousand dollars depending on the 4 Cs (carat, clarity, cut, and color). This is outstanding as the mine has produced multiple sapphires larger than 4 carats. In previous tests of the mine's tailings there is an estimated 10 to 20 carats of sapphires to one yard of tailing material. Currently, there is 484,000 cubic yards of tailings piled on top of the ground ready to mine. This mine is a very significant asset for the company contingent upon the tests and comparatives in the adjacent areas.
The company's oil wells collectively are producing 6-10 barrels a day. In today's market this makes them cost effective to run and operate. The well that is being drilled currently is getting ready to go on line. The well appears to have production potential in the range of 20 to 30 barrels a day; however, actual volumes cannot be defined until the well is pumping online. The driller did verify oil in 2-3 pay zones and is optimistic about other new wells on the 400 acre lease. With today's oil prices this could be a very profitable oil well along with the potential of several offset wells in the future and the possibility of up to 20 wells on this lease.
Now that the above real assets are in place and the equipment purchased, former CEO Larry Wilcox has left the company for personal and health reasons. While new management is being reviewed the Board and Andy Mercer will be overseeing UC Hub Group's day to day operations.
About UC Hub Group:
UC Hub Group is a publicly traded company founded in 1999. Its goal is to pursue merger and acquisition opportunities that will bring value to shareholders. It is currently involved in the oil, gemstone and precious metal industries.
This Shareholders' Letter contains statements that constitute forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements. Factors that may cause or contribute to such differences include, among other things, changes in business conditions and the economy in general, changes in governmental regulations, unforeseen litigation, the impact of competitive products and services, competitive pricing, demand and market acceptance, changes in technology, reliance on key strategic alliances, availability of raw materials, fluctuations in operating results and other risk factors including, reliance on third parties. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor can it assess the effect of each such factor, especially from third parties, on the Company's business or to the extent to which any such factor, or combination of factors, may cause actual results to differ materially from those contained in any forward- looking statement.
SOURCE Andy Mercer