Phoenix Associates to Greatly Increase Production at Murphy Sand and Gravel
NEW ORLEANS, LA, Aug 17, 2006 (MARKET WIRE via COMTEX) -- Phoenix Associates Land Syndicate (Phoenix) (PINKSHEETS: PBLS) today announced that its Murphy Sand & Gravel (MS&G) mining operations are being significantly expanded through the addition of new mining equipment at its Pearl River, LA site that will greatly increase production.
Paul Alonzo, President and CEO of Phoenix, stated, "I am happy to announce that a vast amount of new mining equipment is being currently moved to the MS&G mine site. Thanks to the huge demand in the Greater Gulf region for all the products produced by MS&G, Phoenix feels the time is right to greatly expand the mining activities in Pearl River, Louisiana."
The following equipment is being added to the MS&G mining operation immediately:
Equipment:
Caterpillar 950F Front End Loader
Aztec S-5 Portable Screening Plant
Caterpillar 330 Excavator
John Deere 650 Dozer
Caterpillar 966G Front End Loader
Excel -- Radial Stackers -- 4 Units
NADDA Computer System
Power-Screen Stationary Screening Plant
ALCO 10 X 8 Fully Equipped Dredge
Pit Hog 8 X 6 Dredge
Cutterhead 14 X 12 Dredge (350% capacity vs a 10 X 8 dredge)
The first of this new mining equipment arrived over this past weekend, while the full complement of new mining equipment, valued in excess of $4.3 million, will continue to be delivered over the next 2-3 weeks. Financing for this equipment is being provided by Superior Concrete Crushing, L.L.C. of which Arnold Roge is President.
Once all the new equipment is in place the rate of production of the MS&G mining operations is expected to rise quickly with anticipated depletion of the mine to now be over the next six to eight years, rather than the original projected depletion of about thirty five years. Projected profits from its mining operations are likely to come in around 10-15 percent of gross revenues.
Mr. Alonzo stated, "I had not expected to see MS&G production to grow to these levels during my tenure as CEO of Phoenix, but circumstances have persuaded our board at Phoenix to move quickly to grow this division because of the huge demand for our products. We feel confident that the large investment being made in our mining operations will pay great rewards to Phoenix and our loyal shareholders." |
