RCAI Closes Three Mine Deal for Alderox(R) with Industrias Penoles S.A. de C.V. - One of the World's Premier Mining Companies



    SAN CLEMENTE, CALIF., August 1 /CNW/ - RCAI (OTCBB:RCAA), a world leader
in productivity boosting Alderox(R) release agents and lubricants for heavy
industry, announced today that Mexico's multi-billion dollar Industrias
Penoles S.A. de C.V. ('Penoles'), has placed its first order for three
northern Mexico mines.

    Following the introduction by the World Bank to Penoles S.A. de C.V.,
Alderox(R), a soy-based EcoLogo-certified lubricant, has been in use at
Penoles' flagship Milpillas copper mine for the past two months. The mine had
been experiencing heavy build-up on equipment due to the wet and very sticky
nature of the materials being handled. Now, the use of the Alderox(R) product
is standard operating procedure.

    As a result of the Alderox(R) product's success at Milpillas, trials are
now being extended to two other mines - the La Herradura open pit gold mine
and the Bismarck underground zinc mine. Whilst there are many applications for
Alderox(R) within the mining industry, RCAI recommends it is applied three
times per 24 hours at a rate of three gallons per application for a 240-ton
truck.

    Jose Louis Cervantes, Mine Superintendent at Milpillas, said, "After a
very careful evaluation of Alderox(R) and its performance, I can state that it
substantially increased throughput, greatly reduced the downtime associated
with the build-up of materials, and demonstrated the potential for employee
health and safety benefits.

    "As a direct result, the application of Alderox(R) to combat ore build-up
is now a standard operating procedure at our mine. Penoles is always seeking
ways to mitigate mining's environmental impact and is pleased to be associated
with such an environmentally and cost-effective solution."

    Penoles is the world's leading producer of silver and one of Mexico's
largest and most diverse mining companies with revenues of PS21.85B
(approximately US$2 Billion).

    The Milpillas copper project is Penoles most advanced operation. With
current indicated reserves of 32 million tons and a 2.3% ore grade, annual
average production is estimated at 55,000 tons of cathodic copper.

    RCAI President, Gordon Davies, said, "Penoles is one of the premier
mining companies in the world. Alderox(R) is now in regular use at the
Milpillas mine and performing very well. Now, we are working with Penoles to
trial the product at their La Herradura gold mine and Bismarck zinc mine. As
was the case at Milpillas, successful trials will lead to full time deployment
of the Alderox(R) product at both mines, which dramatically broadens the
application base for the product.

    "We fully anticipate that this is the start of a very long relationship
and one we hope will evolve into Alderox(R) being used in even more of their
mines. Certainly, with the high regard that Penoles has within the
international mining community, this will send out a strong message globally
that there is now a solution to sticky ore handling, especially now that it
has become standard operating procedure. It is not uncommon for a mine to have
in excess of 50 240-ton trucks, given the productivity improvements the mines
are achieving with the recommended application of Alderox(R) there is a very
significant opportunity for us."

    Davies said the opportunity with Penoles had been considerably enhanced
by having Applied Industrial Technologies as RCAI's sole distributor in
Mexico. "Applied's tremendous supply chain management gives us the necessary
depth of support to demonstrate to major corporations that not only can we
supply the right product but that we also have the distribution bandwidth
available through a world class company, Applied."

    About Penoles

    Penoles is a mining group with integrated operations in smelting and
refining non-ferrous metals, and producing chemicals. Penoles is the world's
top producer of refined silver, metallic bismuth and sodium sulfate, the
leading Latin American producer of refined gold, lead and zinc. The company
was founded in 1887. Penoles shares have traded on the Mexican Stock Exchange
since 1968 under the ticker PE&OLES. Penoles' website is at
www.penoles.com.mx.

    About Applied

    Applied Industrial Technologies (NYSE:  AIT), which has about two billion
dollars in sales annually, is one of North America's largest independent
distributors representing more than two million parts critical to the
operations of MRO and OEM customers in virtually every industry.

    The Applied network encompasses more than 4,600 associates at more than
450 facilities in 48 U.S. states, five Canadian provinces, Puerto Rico and
Mexico. Applied's seven strategically located distribution centers warehouse
millions of dollars of inventory to support our local service centers and
customers with necessary products. Applied Industrial Technologies' website is
at www.applied.com.

    About RCAI

    RCAI is an industrial supply company providing products and services
throughout North America and worldwide. RCAI specializes in the development,
manufacturing, sales and distribution of superior, environmentally friendly
lubricants, industrial release agents and form oils in the mining, asphalt,
concrete and cement industries. RCAI's website is at www.rca-inc.com.

    Note to Editors: Mr. Cervantes' contact details can be provided by
calling Nigel Horsley.

    (Forward-looking statement)

    Any statements made in this press release which are not historical facts
contain certain forward-looking statements, as such term is defined in the
Private Litigation Reform Act of 1995, concerning potential developments
affecting the business, prospects, financial condition and other aspects of
the company to which this release pertains. These forward-looking statements
involve known and unknown risks, uncertainties and other factors that may
cause our actual results of the specific items described in this release, and
the company's operations generally, to differ materially from what is
projected in such forward-looking statements. Although such statements are
based upon the best judgments of management of the company as of the date of
this release, significant deviations in magnitude, timing and other factors
may result from business risks and uncertainties including, without
limitation, the company's dependence on third parties, general market and
economic conditions, technical factors, the availability of outside capital,
receipt of revenues and other factors, many of which are beyond the control of
the company. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance, or achievements. Moreover, neither we nor any
other person assumes responsibility for the accuracy and completeness of such
statements, and we disclaim any obligation to update information contained in
any forward- looking statement. Certain of the statements in the news release
are forward-looking. Such statements relating to the Company's future business
and the success of its products are based on Management's beliefs and opinions
and also on assumptions made by and information currently available to the
company. Such statements are subject to certain risks, uncertainties and the
correctness of assumptions, and should be read with this cautionary statement
in mind.




For further information:

For further information: RCAI Nigel Horsley, Vice President
Communications, 778-998-8827 or Mike Davies, CEO, 949-542-7440

Organization Profile

RCAI

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890