The Clavo Rico property is located near the town of El Corpus, in the Municipio de El Corpus, in the Departmento de Choluteca in southwestern Honduras. The property is located southeast of the capital city of Tegucigalpa, and east of the principal city of Choluteca. El Corpus is located approximately 15 km northwest of the border with Nicaragua and approximately 50 km northeast of the Gulf of Fonseca. Inception Mining Inc obtained the Clavo Rico concession in 2015, which provides indefinite exclusive mining rights under the Ley General de Minería of 2013, in exchange for demonstration of geologic activity and an annual fee. Active exploration and mining on the Clavo Rico concession is currently restricted to the northern margin of the main 200 ha concession, encompassing about 9% of the entire area. The main areas of exploration and mining are subdivided into several informal properties, based primarily on the controlling surface rights, but Inception Mining owns all mineral rights.
This property has a complete NI 43-101 that was completed in March 2019. Highlights from the 43-101 report are below:
- NI 43-101 indicates abundant resource deposits.
- Significant historical production–three-year annual average revenue of $4.5MM. Positive cash flow.
- Production team is properly trained, and is capable of continuing the operations without the existing management.
- Current executive management would stay in place for up to 12 months to ensure a smooth transition.
- Significant potential for increased production.
- Additional concessions available.
- Underground expansion underway.
- Insulated from competitors, due to significant barriers to entry, including capital costs, and current concession holdings.
- Over the past 24 months, the company has significantly improved the operations by increasing crushing capacity, improved equipment, increasing stacking capacity, implementing a plan to re-utilize existing areas, and increased surface-rights holdings.
- Strong relationship with local community.