Hondo Minerals Corp. issued an updated review on its mining activities at its properties in the United States, where the company is actively prospecting for gold, silver and other metals.
Hondo Minerals reported that it has signed a purchase agreement for processing equipment in the amount of $2.4 million. The company estimates that the equipment has a fair market value of $4 million.
Hondo Minerals said that the equipment is slated for use at the Tennessee Mine facility where the company is targeting gold, silver and zinc. The equipment will enable Hondo Minerals to process between ten and twenty tons per day at the facility.
Hondo Minerals said that operations at the Tennessee Mine facility will begin on May 30, 2011. The company also told investors that processing capacity is expected to ramp up to 150 tons per day by the end of 2011 and 350 tons per day in 2012.
Hondo Minerals has approximately one million tons of material at the Tennessee Mine facility ready for processing. The company believes that each ton of material may yield between one and three ounces of gold and 30 ounces of silver.
For more information on the company, go to hondominerals.com
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