December 6th, 2013
INTERIM REPORT
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.
Sincerely,
CLAVO
RICO MANAGEMENT