IMPORTANT NOTICE : We are relocating our Blog to our new website

The Clavo Rico website has recently been redesigned with increased functionality, updated information, and easier access to photos and videos of the mine. As a part of the process to streamline information to investors, we have integrated the blog and the website.  

All archived posts have been moved to the Blog section on clavorico.com, so remember to check there for all future news and updates about our progress.


CLAVO RICO MANAGEMENT

UPDATE: Geological team completes first phase of survey

The geological team contracted by Clavo Rico to conduct the survey of the concession has completed the initial phase of their work. After spending a week on-site, they have taken samples from various areas throughout the concession, and sent the samples from previous drilling programs to a lab equipped to conduct the necessary tests in Guatemala City, Guatemala. 

Using the lab space in Guatemala saves us several weeks of customs and shipping procedures, and we look forward to learning whether the samples are sufficient to prepare an NI 43-101, or if additional drilling will be required.

The two photos below are of the drill samples currently being tested in Guatemala.

Spring 2014 Shareholder Update

April 23, 2014

Dear Shareholders,

The first quarter of 2014 has brought change, growth, and real excitement to the Clavo Rico mine. Beginning in the final weeks of 2013, the last few days have seen the final stages of our expansion plans brought to completion. The expansion project began with replacing the culvert that carries the naturally-acidic water, sourced from the local springs, from the recovery pad to the water treatment plant. We then enlarged the banks of the ponds to allow for the increased water usage anticipated on the expanded pads. While the excavation was underway we initiated and completed the excavation for the new patio, which is roughly 30% larger in surface area than the size of the original recovery pad, and installed a new geomembrane on the new patio, complete with piping necessary to move the gold-bearing solution from the pad to the ADR processing plant. Finally, we also expanded the surface area of the original pad to allow for additional ore to be placed.

Despite the monumental task of completing the expansion prior to the onset of the rainy season, January and February 2014 still had higher gold production than January and February 2013, and certainly higher than 2012. All of these steps position Clavo Rico to be able to exceed our original goal of being able to process over 600,000 tons of the gold-rich ore from the Clavo Rico mining concession. It is important to bear in mind that, to date, we have only developed approximately 10% of the full 200 hectare concession, and much of the remaining 90% is dotted with old gold workings. This leaves us considerably more room to grow, and to do so with the confidence that we can continue to produce gold alongside future expansion projects into other areas of the concession.

As we continue to move forward, the second step of this phase of expansion has been to engage the services of a team to conduct a geological survey of the concession in preparation for issuing an NI 43-101, which would substantiate the reserves that we are confident exist throughout the concession based on previous drilling samples from 2004. This team is headed by John Bolaños, whose pedigree includes several graduate-level degrees in mining and geology from Central America and the United Kingdom, and over 20 years in the mining industry. As Registered Member (Qualified Person) of the SME in the USA, Mr. Bolaños’ experience ranges from geology and mining exploration, to creating mining portfolios, financing companies in the international mining market, and organizing NI 43-101 reports.

We are excited about the steps we have taken to position ourselves as a world-class, producing mine with proven reserves. Once we have our reserves “proven” in the form of the internationally-recognized NI 43-101 and our production has met and surpassed all previous levels, we feel our increased valuation will ready us to compete on the global stage for the attention of a senior gold-mining company as a potential acquisition target, or for entry onto a respectable exchange as a publicly-traded company. We remain confident in our abilities to weather unforeseen setbacks and continue to improve our systems and procedures, and would like to thank you for your continued support.

Sincerely,

CLAVO RICO MANAGEMENT

Excavation of patio for new recovery pad.

Completed recovery pad, with geomembrane.

Geomembrane from expanded section of original pad, with piping in place.

Gravel layer being placed on new recovery pad.

Commitment to the environment

As many of our shareholders are aware, the ore currently being processed in the Clavo Rico mine is comprised of tailings from previous mining operations. Moving these tailings to the recovery pad serves the dual purpose of creating an exciting value proposition for the mine, as well as lessening its environmental impact.

The verdant panoramic shot above shows the setting of the current mining activities. The first photo below (unfortunately low-resolution) shows one of the areas that we are currently reforesting, and the second photo shows the growth of an area previously reforested as part of our commitment conducting our mining activities in an ecologically-conscious manner and to improving the local environment. 

In fact, directly adjacent to the original recovery pad is located an area marked as a refuge for iguanas, where they are able to grown and nest in a safe, clean habitat.

UPDATE: Geomembrane is in place

The amount of work involved in the excavation, updates to existing infrastructure, and laying the membrane itself has been nothing short of monumental. 

Once the piping is in place we will be able to begin using the new crusher to distribute a layer of gravel across the top of the membrane, in preparation for the crushed ore itself.

March 2014 Mine Update - Site of the new recovery pad

This video shows how large the expanded recovery pad will be in relation to the original pad.  We see the location of the expansion pad prepared for installation of the geo membrane, as well as the locations of the recovery and holding ponds.

The first holding pond holds rain water, collected during the rainy season, to be used in the sprinkling operations for the rest of the year.  The second, immediately following the first, is the smallest of the four and holds the ore-rich solution as it comes off of the recovery pad before being pumped to the next holding pond (the "pregnant" pond).  Following this we see the original recovery pad in the distance, and the site of the expanded pad in the foreground.  The final two ponds next to each other hold, respectively, the "pregnant" solution before being processed at the ADR plant (just beyond this pond but outside of the frame) and the "barren" solution, which is re-used to continue the gold recovery cycle.

Making connections with the community

At Clavo Rico Ltd, we take pride in not only conducting our mining activities in an ecologically and environmentally responsible manner, but socially as well.

As part of our community outreach program--and to help eliminate any negative social impact the mine may have--every day a mine employee helps to shuttle children from the surrounding area to their school on the other side of the concession.

Clavo Rico are not in the business of making money at the expense of others.  This simple but important gesture underscores our commitment to the community, and to ensuring that the mine is not only profitable to you, our shareholders, but to the local residents who continue to welcome our presence.

Providing safe passage also has the advantage of being exciting for the children, as many of them have never even been driven in a vehicle before.  This is apparent in their faces, as seen in the photos above.