Inception Mining Inc. (IMII) is well-positioned in today’s marketplace of fluctuating prices
Inception Mining Inc. (“Inception”) is a producing gold mining company it is engaged in the identification, exploration, acquisition and development of mineral properties. Their initial focus has been directed towards precious metals, after recognizing the current state of the industry and the multiple opportunities that have surfaced due to the economic upheaval in the sector. Inception plans to capitalize on the availability of a surplus of resources in all segments, including geological, mining, equipment, and processing. While others are suffering, Inception may realize a significant advantage due to high mined material values, coupled with tight cost control measures and availability of mining resources.
Our first acquisition, the U.P. & Burlington patented mining claims near Salmon, Idaho, is a tight vein system with historical production, significant material grades, excellent metallurgy and modest permitting requirements. We have received all necessary permits and have begun bulk sampling program. The vein is surface-exposed, allowing for ease of extraction, while allowing for further resource confirmation via opening and assaying the existing adits.
As of 2015, Inception also owns and operates the Clavo Rico mine. This producing gold mine is located on the 200 hectare Clavo Rico Concession, located in southern Honduras. The area has been explored and proven to be a profitable source of gold reserves since the 16th century, originally by the Spanish and more recently by the local residents. The current operation has the capacity to process up to 1,000 tons of material per day, with low recovery costs.
Clavo Rico Mine
Spanish explorers found untold wealth in the hills of Central and South America and made Spain a world power. Today, a company with a philosophy fitted to responsibly extract gold from high-grade deposits in those same Central American hills is equally determined to create abundant wealth for its shareholders.
In the Clavo Rico concession, strong geological evidence suggests that deep gold sulphide deposits may contain much more gold than the oxide deposits nearer the surface.
The Clavo Rico
Inception’s producing mine is located on the 200 hectare Clavo Rico Concession, located in southern Honduras. This mine was originally explored and exploited in the 16th century by the Spanish, and more recently has been operated by Compania Minera Cerros del Sur, S. de R.L. as a small family business. In 2003, Clavo Rico’s predecessor purchased a 20% interest and later increased its ownership to 99.5%. Since then over five million dollars in the expansion and development of the mine and surrounding properties.
To grow from the small family-owned business to today’s gold recovery operation has taken millions of dollars of investment and the rock solid commitment of Management. Although there have been unforeseen obstacles ranging from record levels of rain fall to problems with contractors and delivery of equipment, Management has remained committed to bringing the mine to a successfully operating and reaching junior mining status.
The operations begin by crushing ore to approximately 3/8 inch size pebbles, which is then mixed with additives, and loaded on the recovery pad for processing. The material is then sprinkled with a solution that leaches the gold from the rock, the solution is collected and processed on-site at Clavo Rico’s own ADR plant. The dore bars that result from this process are shipped to the USA for refining.
Inception’s current recovery operation has been sized to handle up to 1,000 tons of mined materialper daywhich is placed on a recovery bed that has the capacity to receive up to 500,000 tons of material. This represents a sizeable increase in the capacity and therefore the actual gold recovered is expected to increase as the operations adjust. The company commenced full operations on January 1, 2012 and believes that gold content bodies have been located and blocked out. To operate an operation of this magnitude, the management will contract with top level geologists and mine engineers to maximize the efficiencies of the operation to make the mine as profitable as possible for shareholders, and to ensure the life of the project for many years.
Preliminary drilling undertaken by the company and the assays of samples indicate that the material should have grades in the range of 0- 5 grams of gold per ton, which makes this body equal to or greater to some of the highest-producing mines in Central and South America. This may mean that the gold contained in the material sampled could be recoverable.
The Geology Of Southern Honduras
The southern region of Honduras lies in a rich geological zone which extends from El Salvador through the coastal belt of southern Honduras and well into Nicaragua. This belt of Matagalpa volcanics hosts numerous large and high-grade gold deposits. In colonial times, the area was called “El Tabanco.” Trachytic and rhyolitic domes pierce the entire sequence. The latter form the prominent “needles” in the hilly to moderately mountainous topography of the region and appear to play a role in the genesis of the gold deposits.
Exploitation – Surface Gold
Gold veins are formed when super-heated water carrying heavy concentrations of gold rises closer to the earth’s surface. In those areas where the veins reach close to the earth’s surface, the minerals bearing the gold are exposed to oxygen and begin to oxidize or break down, leaving gold deposits in oxide minerals that are easily broken down with chemicals, releasing the gold.
Honduras is renowned for its gold deposits, especially its abundant deposits of oxidized minerals containing gold. Glamis Gold reported that its San Martin mine in Honduras was its largest producing mine exceeding its projected 100,000 oz of gold in 2001.
U.P. & Burlington Project
The U.P. & Burlington mine is one of numerous epithermal precious metal deposits spatially and genetically related to the trans-Challis fault system, a broad northeast-trending structural system that has been traced 270 kilometers across the center of the state of Idaho, from Idaho City and the Boise Basin in the southwest, to the Montana border beyond the city of Salmon in the northeast. Features of the trans-Challis fault system such as the extent and linearity of the system, the high-angle nature of the faults, aligned grabens, Eocene igneous intrusions, a caldera, and post-intrusive adjustment along the faults, all indicate that the regional structure is a major zone of Eocene rifting and crustal extension. Faults and fractures, domes, and grabens of the trans-Challis fault system controlled the locations for vein-filling precious metals and hydrothermal activity. (Bennett, 1984; Kilsgaard & others, 1986; Johnson & others, 1988). The Boise Basin, at the southwest end of the trans-Challis fault system, produced 2.9 million ounces from 1863-1980, more gold than any other mining locality in Idaho. At the opposite, northeastern end of the fault system, there are more than a dozen epithermal gold-silver deposits of Tertiary age with common characteristics, including the U.P. & Burlington mine. They are all vein deposits with simple mineralogy (i.e. quartz gangue) with free gold and auriferous pyrite, and they are in northeast-trending shears or fissures of the trans-Challis fault system. Mineral deposits along the trans-Challis structural system are hosted by a variety of country rock types: Upper Cretaceous granitic rocks of the Idaho batholith, Tertiary dikes, Eocene plutonic rocks and dikes, Paleozoic or PreCambrian roof pendants within the Idaho batholith, pyroclastic rocks of the Eocene Challis volcanics, or, as in the case of the U.P. & Burlington mine, Precambrian meta-sedimentary and igneous rocks. (Kilsgaard & others, 1986).
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