January 21, 2013
Dear
Shareholders,
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