December 6th, 2013
During this year’s rainy season we have endured heavier than normal rainfall once again, and it is a credit to the skills of our mining team that we have still been able to show substantial progress during this period. The profits generated from the sale of gold from July 2013 until the end of November have surpassed those from any other rainy or even dry season, and for the first time have allowed us to cash-flow in the hundreds of thousands of dollars for the last half of this year.
This brings us to two important benchmarks: One is that we can be self-sustaining even during the worst of times, and indeed can still continue to build even during those times; the second is that the ADR plant is running consistently and efficiently enough to be able to process all of the ore that we can place on the recovery field.
We wanted to keep all of the shareholders up to date as we move into our final stages of completing our expansion plans which will get us to 1,000 ounces of gold production per month and bring the value to our investment as we have planned. The purpose of this interim report is to announce that, in light of the above benchmarks, we are now ready to complete the expansion of the recovery field and increase the crushing operations to the desired 500 tons per day.
We have ordered a new portable crusher that will enable us to crush to the specification recommended by Kappes, Cassiday and Associates in their pre-expansion consultation of the concession, which the crusher previously used could not do on a consistent basis. Further, it has a greater crushing capacity than the one previously used. Our agreement with the crusher owner should allow us to be much more cost-efficient since if it is not being used, we do not have to pay for its availability.
We have engaged the services of one of the largest engineering firms in Honduras to design, plan and supervise the construction of phase two of the recovery field. The photo that accompanied the most recent Quarterly Report is reproduced here to give you an idea of what we are undertaking. It shows the recovery field as it currently exists, shown from the perspective of our gold-bearing ponds. We will bring the recovery field from its current end point all the way to the feet of the picture taker. In addition, we will add height to the pond banks to enable us to store more water during the rainy season without running the risk of overflow.
The process of building the Clavo Rico mine into a world class production operation is continual, but one in which we are making steady, incremental progress . We look forward to positioning the mine to be an attractive investment for future partners or purchasers.
CLAVO RICO MANAGEMENT