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UC Hub Group, Inc.: UC Hub Group Signs Binding Agreement for Gold and Royal American Sapphire Property

^{Published on 2009-06-02 08:22:57, Last Modified on 2009-06-02 08:24:08 - Market Wire}
 

LOS ANGELES, CA--(Marketwire - June 2, 2009) - UC Hub Group, Inc. (OTCBB: [ UCHB ]) announces the signing of a binding deal for the gold and sapphire mine in Montana. UC Hub has moved its equipment to the property and it will be used for the Gold mining portion of the 100 plus acres. There will be two integrated wash plants on this property. The UC Hub wash plant will focus on the gold mining on the property of which it has been projected to be a significant revenue center for the Company. The gold portion of the mining operation is projected to produce and ramp to about $500,000 or greater a month once the plants are on schedule during a full mining season and may potentially increase significantly with more volume and double shifts. The company projects that the cubic yards per this 100 acre site may have 10-20 year term depending on the depths and layers of gold and sapphires.

The Royal American Sapphire market is another very exciting precious gem on the property and management believes that some of these Royal American Sapphires will have significantly more value than the gold. The Sapphires will be mined in parallel with the 2nd Wash Plant. Management has tested both the gold and sapphire production with a small sampling of 1.5 yards and produced gold and 20 plus sapphires. The size and volume of the Royal American Sapphire on this property is reported and projected to be 1,000s of carats per acre and is significant in comparison to most sapphire mining opportunities anywhere in the United States. The past production reports in this area represented over 5,000 troy ounces of gold and over 900,000 carats of sapphires per year. The production was back in the 1940s and they halted production after the war was over. Sapphires of 1 carat (.2g) of gem quality cut can be $1600 or greater. Sapphires can also be only worth a $1 a carat in some cases depending on clarity and size. However, the Company will remain cautious with respect to these dual and compounding potential markets until actual production reports begin this month.

With two potential revenue centers, and two wash plants, the company is extremely excited about mining the Gold, the Royal American Sapphires and other materials on this rich property. Some parties may not believe in the sapphires so we have gold; and for those who do not believe in the gold we have sapphires. The Company believes that this dual opportunity with dual mining wash plants is the key to a very timely success. The projections on a 10 to 20 year period with a combination of revenue streams contingent upon actual production should complement the value of UC Hub to even the harshest critic. We will give a further update as soon as integration of equipment which is on site and other items have deployed and completed during the month of June. Management is very excited to present two revenue centers of gold and sapphires to the longstanding UC Hub shareholders who have been so very patient and trusting.

Safe Harbor Provision

This news release includes forward-looking statements, including some with respect to the future level of business for the parties. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors that could cause actual results to differ materially from estimated results. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties and events that may be beyond the control of the Company, and no assurance can be given that such results will be achieved. Potential risks and uncertainties include, but are not limited to, the ability to procure, properly price, retain and successfully complete projects, the availability of technical personnel, changes in technology and competition, domestic and global economic fluctuations, and the like.