HEXAGON ISSUES OPERATIONS UPDATE COMPANY WILL PROVE SILVER VALLEY RESERVES,
RAMP UP TO FULL PRODUCTION AT SKULL VALLEY
RENO, Nev., Feb 22, 2000 /PRNewswire via COMTEX/ -- Maurice Furlong,
president and chief executive officer of Hexagon Consolidated Companies
of America, Inc. has ("HCCA")(OTC Bulletin Board: HCCAE), today issued
an update on operations. Pending acceptance by the Bureau of Land
Management (BLM) of the company's "Notice of Intent," or plan of
operation, Hexagon, through its subsidiary Peeples Mining Company will
commence core drilling for bulk samples on 10 precious metals claims
located on approximately 200 acres near Barstow, Calif., collectively
known as the "Silver Valley Claims."
A recent report by John Heter Mining & Development Co. (Calif.),
estimated the value of "possible" reserves contained in Hexagon's
Silver Valley Claims to be in excess of $7 billion. This
classification, based upon a preliminary assessment, represented the
first step toward "proved" reserves. Assuming a typical BLM lead time
of approximately 90 days, Furlong said that he expects the
aforementioned core drilling -- to "prove" the reserves and assist
management in further estimating extraction costs -- to be underway by
late spring or early summer.
The Azucar Mine, located within Hexagon's Silver Valley Claims, was
mined intermittently for many years. In 1941, the Bureau of Mines
reported the extraction of 6 oz. of gold from 20 tons of ore taken from
the Azucar Mine. What remains of the mine is a 120-foot shaft along a
quartz vein with 125 feet of drifts.
Furlong indicated that installation of new, more efficient processing
equipment is underway at the company's Skull Valley (Ariz.) property,
and that the new equipment, together with the company's conversion to a
higher yield processing technique, is expected to result in a threefold
increase in processing capacity of ore concentrate per hour. According
to Furlong, the mine is expected to ramp up to full production within
the next 10 - 12 weeks.
"We are enthusiastic about the preliminary findings on our Silver
Valley Claims, and the near-term prospect of enhancing our reserves.
However, we especially look forward to reaching full production at our
Skull Valley property, which has excellent potential for revenue
generation over the long term," said Furlong.
Hexagon Consolidated Companies of America, Inc. is a company with
interests in mining, health care, music publishing and real estate.
NOTE: This news release contains statements that may be considered
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
inherently uncertain, and the company's actual results may differ from
management's expectations. Further information on potential factors
that could affect the financial condition and results of operations of
the company are included in the filings of the company with the
Securities and Exchange Commission.
SOURCE Hexagon Consolidated Companies of America, Inc.
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Madeleine Franco of Jordan Richard Assoc., 801-268-8610,
ir@jordanrichard.com, for Hexagon Consolidated Companies of
America, Inc.
WEB PAGE: jordanrichard.com
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