October 21, 2013
Management is pleased to be able to report to the shareholders the results of our operations for the third quarter of 2013.
For the quarter ending September 30, 2013, the Company has once again achieved record levels of production and sales of precious minerals. In Q3 we sold 786 ounces of gold compared to sales of gold of 312 ounces in 2012 for the same period which represents an increase of 152%. The sales of gold resulted in revenues $1,045,251 compared to revenue for the same quarter in 2012 of $349,089.
In the third quarter of the year we also achieved our first full quarter of profitable operations by recording a profit of approximately $265,000 for the quarter compared to a loss from operations of approximately $400,911 in the same quarter of 2012.
Now that we have achieved profitable operations on a consistent basis, we have plans to expand the recovery field by moving to Phase Two of our planned expansion. The initial construction phase will commence at the conclusion of this year’s rainy season in November and is scheduled to be completed in the first quarter of next year. This will increase the capacity of the recovery field to 600,000 tons and allow us to now concentrate on increasing the crushing and loading operations to push our production to the levels originally intended.
Our intended target is to consistently produce above 1,000 ounces of gold per month, and also conduct a drilling program to establish proven reserves on the remainder of the concession before pursuing a liquidity event. Preliminary exploratory sampling in other areas of the concession have indicated a high probability of substantial gold reserves, and we look forward to embarking on that phase of our expansion plan.
During our most recent visit to the mine site we took a number of photos to show the intended expansion areas. These photos show the area that will become the remainder of the recovery field. The new membrane will be laid from the current recovery pile to and including the steps shown in the foreground of the first photo. The mound covered in the foreground of the pictures is ore waiting to be crushed, and is protected from the daily rains so as to minimize the amount of mud generated during the crushing process.
Although the rains have slowed us down somewhat our production has continued on pace through this season, which is our first full rainy season with all of our operations intact and we have been pleasantly surprised that production has kept pace during this traditional downtime. The second photo shows the crusher, which will be moved over toward the old processing plant where the spent ore has been excavated to make more room for the increased field capacity.
We look forward to keeping you apprised of our progress as we move forward with the next stages of our expansion.
CLAVO RICO MANAGEMENT