It is with a great deal of pleasure that the Company can report to you that we have completed the most successful quarter of production in the history of our Honduran gold project.
In the three months ending September 30, 2014, we completed precious minerals production bringing in excess of 1,500 ounces of gold. To put that in perspective, even during our rainiest time of the year we have produced more gold than in the entire year of 2012, and 82% of all the gold we produced in the entire year of 2013. In fact, it far outstrips the gold production in any preceding quarter. It has taken a long time getting to this point, and there are still issues to be solved involving exportation and refining our crushing operation, but to say that we are pleased with the positioning of the Company is an understatement.
This steep increase in production has of course come with an increase in Company revenues. Revenues for the third quarter of 2014 were 127% of those for the third quarter of 2013. The fourth quarter of 2013 coincided with the beginning of expansion project and brought with it drop in revenues- a drop that will not happen in 2014. Rather, we expect the fourth quarter to actually exceed the third quarter and set new production records.
October is the wettest month of the year in Honduras, but operations continue and our projections for the final quarter of the year will almost certainly exceed that of the third quarter. We are poised to continue our growth to in excess of 1,000 ounces each month to fully maximize our shareholders value. To hit that production goal, it will be necessary to upgrade our production equipment so we can cut down on repairs and down time. The costs for this will nearly all be completed using excess funds generated by our production. It will be in the coming dry season, after the equipment upgrade, that we should hit or exceed our goals.
As our production goals are now being met, the next step in bringing shareholder value is the estimation of the ore deposits available at our concession. We believe that a reliable appraisal of the extent of our ore body is necessary in order to show to potential purchasers, or the market, the true value of what we have built. As we reported to you earlier, we recently engaged a geologist, a Qualified Person, to produce the initial NI 43-101, a recognized standard report used by all in the industry to value precious mineral properties. The first stage of this has now been completed. Since we have not drilled on the concession for more than ten years, the results of the core samples from those previous efforts could not be used in the report. However, our Qualified Person has outlined the steps to be taken to get the ore body estimates to a “probable” state. He also gave us his “unofficial” estimates, which justify and validate our efforts in pursuing this investment. They exceed our initial estimates of reserves in excess of 500,000 ounces. As our revenues allow we will now allocate funds to commence and complete a drilling program to verify those estimates and substantiate our valuations of the project, and appropriately update our NI 43-101.
We are looking forward to giving you even more to cheer about in the next quarterly report.
CLAVO RICO MANAGEMENT