Clavo Rico, Inception’s producing mine, is located on the 200 hectare Clavo Rico concession in southern Honduras.
Its workings include several historical underground mining operations dating as far back to the early Mayan civilization, and later the Spanish occupation after they discovered its rich deposits. In modern times, the mine has been operated by local residents, including the more recent predecessors to Inception Mining that invested over USD $5 million in the expansion and development of the mine and surrounding properties.
In March 2019, Inception Mining completed a National Instrument 43-101 Technical Report (the “Technical Report”) that includes an estimate on the Clavo Rico project, an undertaking that was two years in the making.
- 1 Data on an oxide zone of 4.3 million tons at an average grade of 0.75 grams per ton (g/t Au), yielding an inferred ~113,000 ounces Au. The oxide zone has been producing since 2015.
- 2An estimate of the sulfide zone was calculated using two different modeling techniques to reflect geologic uncertainties: the first model shows an estimated ~4 million tonnes at an average grade of 0.47 g/t Au yielding an inferred ~65,500 ounces Au; and a simplified geologic block model reflecting the known extent of mineralization indicates ~20.5 million tonnes at an average grade of 0.47 g/t Au yielding an inferred ~340,500 ounces Au.
- 3An estimate of the supergene enrichment zone suggests a minimum estimate of 51,000 tonnes at an average grade of 3.25 grams per tonne (g/t Au) yielding an inferred~8,000 ounces Au.
- 4Economic mineralization at Clavo Rico is contained in three distinct zones, including an oxide zone, a supergene enrichment zone, and a sulfide zone.
- 5Data on 96 recent and historic drill holes totaling 6264 meters of drill core yielding 2552 assays together with 827 channel samples collected from historic adits.
- 6The conceptual geologic model, supported by field mapping, production records and both recent and historic drill programs suggests that significant potential exists to increase the known mineral resource with additional drilling.
The deep gold sulphide deposits in the Clavo Rico concession, inferred by the geological evidence to possibly contain much more gold than the oxide deposits nearer the surface, are the kind of deposits that make “world-class mines,” and Management has remained committed to bringing the mine to a successful junior mining status.
Clavo Rico – Operations
The current Clavo Rico recovery operation has been sized to handle up to 1,000 tons of mined material per day, which is placed on a recovery bed that has the capacity to receive up to 500,000 tons of material. Mine operations begin by crushing ore to approximately 3/8 inch size pebbles, which is mixed with additives and loaded onto the recovery pad for processing. The material is then sprinkled with a solution that leaches the gold from the rock, and the solution is collected and processed on-site at Clavo Rico’s own ADR (Adsorption/Desorption/Recovery) plant. The dore bars that result from this process are shipped to the USA for refining.
To operate an project of this magnitude, the management has contracted with top level geologists and mine engineers to maximize the efficiencies of the operation to make the mine as profitable as possible for shareholders, and to ensure the life of the project for many years. Our proven asset has over 5 years of audited financials, with low cost of production and significant growth potential.
Clavo Rico – Geology/Resource Potential
The southern region of Honduras lies in a rich geological zone which extends from El Salvador through the coastal belt of southern Honduras and well into Nicaragua. This belt of Matagalpa volcanics hosts numerous large and high-grade gold deposits. Trachytic and rhyolitic domes pierce the entire sequence. The latter form the prominent “needles” in the hilly to moderately mountainous topography of the region and appear to play a role in the genesis of the gold deposits.
Gold veins are formed when super-heated water carrying heavy concentrations of gold rises closer to the earth’s surface. In those areas where the veins reach close to the earth’s surface, the minerals bearing the gold are exposed to oxygen and begin to oxidize or break down, leaving gold deposits in oxide minerals that are easily broken down with chemicals, releasing the gold. Honduras is renowned for its gold deposits, especially its abundant deposits of oxidized minerals containing gold, making the country a sought-after destination for gold exploration and mining companies.
Clavo Rico – Local Community
As the Clavo Rico mine continues to become more successful, this success will continue to improve the already strong, mutually beneficial relationship between Inception and the local communities. In addition to employment directly by the mine, subcontracted firms that supply mine goods and services also benefit with employment that is often equal to or much higher than direct mine employment.
The infrastructure creation required by the mining operation also facilitates the development of other economic opportunities. Building new roads improves access to areas and integrates them to the national economy. Some of the most important infrastructure expenditures by Inception and its predecessors have included the construction or upgrading of local roads, schools, and hospitals.
More broadly, the Honduran government is generally open to foreign investment, with limited restrictions and performance requirements. Low labor costs, proximity to the U.S. market, and the Caribbean port of Puerto Cortés all facilitate the operations of the Clavo Rico mine and make Honduras attractive to investors.
