CHLORIDE, Ariz., Feb. 8, 2012 (GLOBE NEWSWIRE) -- Hondo Minerals Corporation (OTCBB:HMNC.OB), today as part of its commitment to transparency as a publicly traded company, is updating its financial guidance expectations for the calendar 2012.
Hondo now expects to generate between $36 and $41 million in revenue from the sale of gold, silver and other metals in 2012. This expected level of revenue is projected to yield net income in a range of $8 million to $11 million for the full year 2012. The company expects to generate between $1 million and $2 million of revenue in the first quarter of 2012, with production ramping to its originally planned level by the second half of the year.
Bill Miertschin Chairman and CEO said, "Today is the one year anniversary of our merger and we have worked diligently to bring this deposit from breaking ground to production in 2012." Bill adds, "Generating significant revenues and net income from the Tennessee Mine keeps us on track in building Hondo to be a quality mining and mining technology company."
Hondo is operating the leach step of its process with only a four cell Renocell system as an intermediate step to full production for metal extraction while awaiting delivery of the larger Renocell system. The delivery of specialized parts from a third party vendor delayed the ramping to full production until the 24 bank Renocell system is delivered to the Chloride mine site. Once received, the larger Renocell systems will be installed later this quarter. The 24 operating Renocells enable Hondo to ramp up to its 2012 targeted processing capacity of 150 tons of tailings per day.
About Hondo Minerals
Hondo Minerals Corporation is engaged in the acquisition of mines, mining claims and mining real estate in the United States, Canada and Mexico with mineral reserves of precious metals or non-ferrous metals. Hondo owns the Tennessee and Schuylkill Mines in Chloride, Arizona. The Tennessee Mine was the largest producing silver mine in Arizona history. The Tennessee Mine operated from the late 1800′s until 1947 producing lead, zinc, gold and silver. The Company also owns numerous other mining claims in the US Southwest, which are being evaluated for additional reserves.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including the Company's beliefs about its business prospects and future results of operations. These results may not indicative of the result achieved in the entire tailings pile do to the non-homogenous nature of the pile itself. Some factors that could cause actual results to differ materially include economic and operational risks, changes in anticipated earnings, continuation of current contracts, and other factors detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Forms 10-KSB and 10-QSB. The Company forecasts provided above are dynamic and therefore refer only to this release date. The Company does not undertake to update any forecasts that it may make available to the investing public. Please visit www.Hondominerals.com