January 21, 2013
We are back from the holiday season and ready to commence full operations as planned. As we move into the New Year, the mine and the plant are moving forward as expected as we prepare for a full year of increased production. The ADR plant has been sized to provide us with the capacity to process enough gold bearing solution to reach production of at least the 1,000 ounce level each month. The amount of gold ore on the recovery field increases every day and the recovery operation on the field continues 24/7. We have been able to smelt our first test dore bars in our new smelting furnace, which needed to be relocated from the initial plant configuration. It is this kind of fine-tuning and minor changes that have been necessary in getting ready for full production.
We have hired a new consultant to work with us in starting up and maximizing the potential of the plant. Mr. Keith Brogoitti is an experienced mining operator, with many years working with major mining operations all over the world. In the past, Mr. Brogoitti has been a Senior Metallurgical Engineer for Newmont and became Manager of Carbon Handing and Refining for Newmont Mining’s (NEM) Nevada operations producing 1.7 million ounces per year. He has consulted for Kennecott, Phelps Dodge, Asarco, Noranda, Bema Gold and BHP. Based in Paraguay, he is proficient in Spanish and is a welcome addition to our team.
It has been our pleasure to host a number of representatives from different mining concerns, including international geological firms. These groups have been making inquiries concerning the gold fields in and around the Clavo Rico mining concession. In each case all have been impressed with the progress that the Clavo Rico mine has been able to make in the past two years of our expansion project. It is now a clean and streamlined operation that can be used as a springboard to much greater exploration and production, both on our concession and for adjacent concessions. It is management’s intention to continue to showcase the mine and its operations as we move forward this year to the next level and maximize our shareholders’ value.
We look forward to 2013 being the year that the returns on all our investment and hard work will be realized.
CLAVO RICO, LTD MANAGEMENT