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Frequently Asked Questions
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Responses
by Tom Milam, Jr.
1. What is the government of Honduras like to do business with?
We have found the government of Honduras to be both fair and helpful.
The people and the government of Honduras are supportive of U.S. citizens
making financial commitments in Honduras. The Mining Laws of Honduras
were changed two years ago to reflect the interests and input of U.S.
Companies. More favorable tax incentives, etc.
2. What is quality of the ore in Honduras?
Some of the best ores that I have seen in Colorado would be used for
road fill in Honduras. The numbers are very good. However, that is
my own opinion.
3. Is it difficult to travel to Honduras?
No, not at all. We take Continental Airlines through Houston, Texas.
American Airlines has a similar service through Miami, Florida. We
leave Oklahoma City early in the morning and have lunch in Tegucigalpa
(Capital of Honduras) early that afternoon. Avis, Hertz, etc., all
have rental agencies at the airport. You can apply for and get your
Honduras Visa at the airport. There are many money-changers that will
find you as you leave the inside of the terminal. Most of them are
honest. I would recommend that you take someone with you who has been
through this situation before. It is a bit confusing the first time.
You will need a major credit card to rent a vehicle. I would also
recommend that you take out full insurance. There are road hazards
in Honduras, animals, etc. Your costs will be approximately $100.00
a day for a four wheel drive rental vehicle. The vehicles from Avis
appear to be fairly new and they take good care of them.
4. Is it difficult to process the ores from Honduras?
Yes and No. The placer sands appear to be normal. You will need placer
equipment that is set up for the fine gold.
The hard rock ores are sometimes very difficult to break, very complex.
The gold is fine to micro-fine in size. Cyanide leaching works well
on most of these ores. However, we have chosen to find another leach
other than cyanide. We have tested approximately ten (10) different
leaches, these would include chlorine and thiourea So far, we are
continuing to test additional leaches. Many of these ores carry arsenopyrites,
selenium, and tellurium. The arsenopyrites sometimes carry tremendous
values. But traditionally you had to roast those ores to release the
values.
5. How long would it take to get a small mine into production - how
much would it cost?
If the new leach works on these ores and if the price of gold continues
to go up - then it would not be difficult to go into mining! Several
of these sites could be producing and profitable within nine (9) months.
However, the new leach must work for that to occur. The mill is built
and ready to go. But we need a leach that will properly treat these
ores. The mine sites would require a compressor, generator, track,
cars, drills, drill stems, bits, wire, hoses, and etc. Estimated cost
per location would be less than $250,000.00 a location. This would
not cover airfare or personal expenses.
There are a number of skilled miners in retirement in Honduras. These
guys have been retired from the big mines. I feel that they would
make an excellent source for shift bosses and foremen for these properties.
There are a number of American consultants who could setup a site
and train the crews. The UN had a program a couple of years ago to
do just that. The local economy would flourish with the opening of
a couple of small mines.
6. Is it safe for Americans to work and invest in Honduras?
Yes and No. Mining and exploration can be a bit difficult at times.
I recommend a good 4 wheel drive vehicle, bug repellant, and extra
money. Several months ago, I got a 4 wheel drive truck stuck, really
stuck. A local rancher came by and offered to help. Within thirty
(30) minutes, he had pulled us out of the hole. Next time, I will
have either a winch or at least a come-a-long with nylon straps. Always
take someone with you. You never know when you will turn an ankle
or worse. The Country of Honduras is a great place to visit, the people
are warm and hospitable, the food is great, and the countryside is
absolutely beautiful.
7. Have you made any money in Honduras?
No, we have not made any money in Honduras, yet. We are unable to
process the ores because of the tellurium and selenium in the ores.
However, we anticipate making a positive cash flow starting in January
of 2003. We milled a considerable amount of ore using chlorine and
then gravity. Both of these processes did not work. All of the values
reported to the tails.
8. Will you tell us if the new leach works? And if so, what is in
it?
Yes and No. I will let you know if it works for us. However, you will
need to do your own due diligence. Each ore is different and requires
unique milling and smelting configurations. However, the new leach
in Honduras should be able to handle the most difficult Honduras ores
without difficulty.
9. Do you have more than one (1) mine site?
Yes, we have approximately eighteen (18) different sites under consideration.
There are probably 5,000 or more good sites in Honduras. Glamis Gold
is doing very well in Honduras. I wish that I have purchased some
of their stock last summer. In addition, only about 10% of Honduras
has been explored for minerals. There are vast areas that are still
unknown as to whether they have mineral values.
10. Are there custom mills available in Honduras?
Not that I know of. There are a number of people who have table gravity
mills. Some of the Honduras ores will gravity separate.
11. Who would I contact for help in Honduras?
You can contact the American Embassy, they could probably help you.
The Honduras Division of Oil & Gas and Mining. I will try to get
their telephone numbers when I am in Honduras next time.
There are several gentlemen who have had Honduras Mining Companies
in the past:
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Parker
McLean, currently living in Michigan: telephone and fax: (989)
739-9628. Parker has a Honduran Mining Company, with placer holdings
near the Guayape River in Olancho.
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12. When are you leaving for Honduras? When are you going to make
lot's of money? When are you going to take your friends? When are
you going to have a party? When are you going to buy another airplane?
When are you going to be rich and famous? When are your friends going
to be rich and famous?
We'll have an answer soon!
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