Press Release Source: AZCO Mining, Inc.2
AZCO Mining Begins Shipment of Feldspathic Sand Products and Prepares for Major Increase in Production
Wednesday September 4, 9:01 am ET
GLENDALE, Ariz.--(BUSINESS WIRE)--Sept. 4, 2002--AZCO Mining, Inc. (AMEX:AZC - News) announced today that it has begun supplying high-quality feldspathic sand products to customers in the Phoenix area. The Company has received preliminary commitments to purchase a substantial portion of its sand products, and it plans to expand its production capacity and to build its customer base as it increases its operational capability. Over the next twelve months, AZCO plans to increase production from its Black Canyon mine to reach the full production rate of 180,000 tons per year.
"Because AZCO products have a major price advantage, are of excellent quality and are available locally, the acceptance by consumers has been extremely positive," said CEO Larry Olson. "Potential customers tell us they would welcome a high quality local source and we expect to be able to offer our products at very competitive prices. Over the coming months, I am confident we will be successful in achieving our targeted sale volumes, as it appears to be totally based on our ability to produce."
AZCO intends to sell its feldspathic sand products into the growing construction and recreation markets in the Phoenix, Ariz., metropolitan area, where demand is estimated to exceed 500,000 tons per year. The main applications include sand used for stucco, plaster and mortar in new construction, and sand used for bunkers on golf courses. Prices range from $20 to over $100 per ton, depending on whether the material is shipped in bulk or is bagged, and on its sizing, purity and end use. The location of the Black Canyon mine near Phoenix gives AZCO a substantial transport cost advantage over other sand suppliers that now are bringing material from as far away as Nevada and California.
AZCO's feldspathic sand is produced as a by-product of mica concentration from its wholly owned Black Canyon mica mine located 40 miles north of Phoenix. Processing the sand involves crushing, screening and magnetic separation to yield a wide range of quality products that can be closely controlled as to particle size, purity and other specifications. The products are either bagged for shipment or trucked in bulk to customers.
Mica is the primary product from the Black Canyon mine and the major long-run focus of AZCO's marketing activities. After it is processed at the Glendale plant, the mica is targeted for high-value applications in plastics, coatings and cosmetics. Olson said, "We are pleased with the progress we are continuing to make in the marketing of our mica but always have recognized that building those markets will take time. Meanwhile, as production of feldspathic sand builds up, the corresponding forecasted revenues are projected to increase and eventually cover the majority of the Company's operating costs."
AZCO is aggressively seeking the needed financing to cover the cost of capital required to complete certain upgrades and expansions at its Black Canyon and Glendale processing facilities and to cover ongoing operating expense. Its ability to achieve its goals and objectives, including increasing production of feldspathic sand to reach the planned capacity of 180,000 tons per year, will depend on securing the required financing in a timely manner.
About AZCO Mining, Inc.
AZCO Mining is a U.S. mining company engaged in mining exploration and development with a general business strategy to acquire and develop mineral properties amenable to low-cost production. The Company is focused on producing Muscovite Mica from its 100 percent-owned Black Canyon Mica project in Arizona. Construction has been completed on the mica project and limited production is underway. Marketing efforts are concentrated on the sale of mica-filled plastic pellets, developed by AZCO, to be used in the production of reinforced plastics. Feldspathic sand, produced as a by-product of mica production, is currently being sold in local markets for use in stucco production, golf courses and construction sand products. Over 20 cosmetic manufacturers are testing AZCO's mica; three cosmetics companies have approved AZCO mica for use in their products; and the Company has fulfilled initial orders.
The information contained herein regarding risks and uncertainties, including that pertaining to forecast revenues from sales of feldspathic sand and other products, which may differ materially from those set forth in these statements in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the Company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein. Further, the Company assumes no obligation to update or otherwise publicly revise the forward-looking information disclosed herein to reflect circumstances existing after the date hereof.
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Contact:
AZCO Mining, Inc.
Lawrence Olson, 623/935-0774
www.azco.com
or
Investor Relations International
Haris Tajyar, 818/981-5300
htajyar@irintl.com
or
Media One
Jamie Michaels, 407/682-4900, ext. 102
www.mediaonecorporation.com |
