Historic Spanish Gold mine (L115)
located in Honduras
SOLD
$350,000 USD
buys you 100% (unencumbered)
ownership in this historic gold mine
The Clavo Rico (meaning rich nail) mine is arguably one of the best high grade gold mining projects in Honduras. It's potential lies in the possibility for either an expanded opencast/underground mine or conversion into an open pit, heap leach operation.
The Clavo Rico has a colorful and well documented history. The first recorded underground mining by the Spaniards dates back to 1647. Since the time the Spaniards left until the early 1970's there had been limited placer mining activity by locals.
In 1975 a Central American mining company acquired the mining concessions and established an underground/open-cut mine into operation. This work was initiated on a portion of the mineralized shear zone and small scale production is ongoing today.
Production involves treatment of oxide ore by an efficient NaCN vat leaching process with a 90% recovery in 21 days. Gold and Silver are recovered by activated carbon in precipitating towers. All leaching and recovery of .99 fine gold is accomplished on site.
The property is held as Zona Minera, the best type of title available in Honduras so that no permits are required for expansion. Even with low technology and pick and shovel mining this mine is able to operate at a profit with today's low gold prices! A 20 year history shows that the cost per oz to mine the gold is only $90 -$110 resulting in guaranteed profitability regardless of the price of gold.
Geology reports were completed by several companies including the well known Dr. Bernard Free. All assays and reserves verifiable by Hanover Gold and all core drilling data. Dr. Free is willing to manage this project for the new owner.
| 35,000 Proven oz | x $290 = $ 10.15 M |
| 60,000 Indicated oz | x $290 = $17.4 M |
| 350,000 Probable oz | x $290 = $ 101.5 M |
Current Production is limited due to a relatively long ( 21 day ) leaching cycle. Production can be dramatically increased by expanding as follows:
With an additional investment of $570,000 gold production can be increased to 10,000 oz per year. This would be done by adding an additional leaching vat and an ore crusher and screening plant. The run-of-mine ore would be reduced to 1/2" and vat capacity would be increased resulting in 12 day leach cycles.
An additional $90,000 investment would double production once again to 20,000 oz of gold per year by adding more leach vat capacity. This means with a total investment of a little over one million dollars, the new owner would realize a profit of between 3 - 4 million dollars per year!
| Cost of Purchase | $350,000 |
| Cost of Expansion | $660,000 |
| Total Investment | $1,010,000 |
| Gross Income per year | $5,800,000 |
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| Less Cost of Mining | $2,200,000 |
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| Net Annual Profit | $3.6 million |
This project is only now available because the present owners wish to retire and are unable to fund any expansion themselves.
Contact us for more details
and ask about the
Historic Spanish Gold mine
(L115)
fax (208) 265 5377
