22 July 2013 Dear Members I write this report from Machala, Ecuador, where I have based myself to concentrate on getting both Midas I and Midas 2 into production. I am delighted to tell you that we have now completed the land purchase for both mine shafts, and we are in a position to start extraction of Gold-bearing ore from the existing veins running from the main tunnels. Diego Rivera Ordoñez, our Mine Manager, has retrieved sample ore from the fourth vein in Midas I and we are waiting for an assay report on its Gold and other mineral content, however it looks very promising. I am currently concentrating on the purchase of essential equipment and portable site offices, large volume compressors and plant including larger equipment such as loading shovels and excavators. To ease pressure on cash flow, we will be hiring most of this equipment initially until we are in production. I have posted some photographs on the website of both Midas I and 2, which show just the tunnel entrance which we are in the process of tidying and making safe for the principal entrance to the mine. Water, electricity and telephones are also being installed and the whole operation will be managed onsite from the new site office at Midas 2. We are building a proper mining company that will be run to a very high standard. I have requested that Diego produces 400 tons of ore within the next four weeks from Midas I so that we can send it away for processing to start generating cash flow. Next week we are meeting with a German company who have chosen Zamora as the location to build a state of the art processing plant. We intend to negotiate a deal to process the ore from all our mines. There is more good news too - we are now looking at taking over another operating shaft nearby which we are going to call ‘Midas 3’. It may be possible to link this new shaft underground with Midas I and 2, and I will keep you informed as to progress. It can sometimes be very slow here but if you keep at it success is normally the result. We should then be a very serious contender in the mining business and at that stage it would be a good idea for us to start thinking about constructing our own processing plant. The fact that we now actually own the 5 hectares covering both Midas I and 2 gives us the unrestricted opportunity to develop and extract ore from the site without reference or payment to others. We have qualified and paid for our explosives and storage licence and now just need to build a shed to safely store the gelignite. The use of proper industrial explosives will not only make the job safer, but will also speed the operation up because we are using an explosive with known qualities which give us greater control. I am also planning a dust extraction system to speed up time between blasts; this is something new for the miners here and they will have to accept it before I can build it. Given that they are very traditional in their approach it may take some persuasion, but once they understand the benefits I am sure they will adapt. Overall, I am very pleased with the set-up we now have, which includes the new office in Machala providing us with support ‘at the Gold face’ for want of a better description. I must again thank Continental Mining Opportunities who have been present here for the last nine months for their invaluable help in setting up such a seamless operation. It has been very difficult at times, but with the support of you, the Members of this organisation, we are actually now in the real business of producing Gold. A year ago what we have achieved seemed a distant possibility, but with your support we have turned this into a reality. I would also like to let you know Certificate production has commenced and the first batch will be issued by the end of this month. Please bear with us as it will take some time to issue them all, but we are underway. Finally, I would like to thank you for your continuing support as we move ahead with the operation. Yours sincerely Willy White President – Fyfield Minera S.A.
Posted on: Mon, 29 Jul 2013 10:19:01 +0000
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