SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 4, 2004
Commerce Group Corp.
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(Exact name of registrant as specified in its charter)
Wisconsin 1-7375 39-1942961
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification
No.)
6001 North 91st Street, Milwaukee, Wisconsin 53225-1795
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (414) 462-5310
fax: (414) 462-5312
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ITEM 5. OTHER EVENTS MATERIAL DISCLOSURE
This may be used as a news release after the filing of this Securities
and Exchange Commission Form 8-K:
COMMERCE GROUP CORP. WAS GRANTED TWO ADDITIONAL CONCESSIONS
FROM THE EL SALVADOR GOVERNMENT
Milwaukee, Wisconsin--Commerce Group Corp. (Commerce) reports that it
received valuable rights (concessions) from Government of El Salvador to
extract and process precious metals. One is the Nueva Esparta
Exploration Concession/License consisting of 45 square kilometers (11,115
acres) of area in which it has the sole right to excavate gold and silver
ore, process, and sell it. In this area, there are at least eight
formerly operated gold and silver mines. These mines are in a
mineralized zone extending over four miles northwest of Commerce's San
Sebastian Gold Mine. The United Nation's report references this as the
Montemayor lineament and/or part of the Three Corners area.
This area includes the Montemayor property which embraces a group of mine
openings and prospects aligned along a series of parallel southeast
striking veins following the course of the Montemayor river for 16,000
feet from its headwaters to the beginning of the pronounced "S" bend
enclosing the old Tabanco Mine.
Commerce plans to explore the eight formerly operative mines in the Nueva
Esparta area by locating workable ore within the known structures through
mapping and sampling of vein outcrops, reopening mapping, and sampling of
underground works. Commerce has performed preliminary exploration in the
Montemayor Mine from March 1995 through 1997. Its findings from the ore
sampled were positive and encouraged additional exploration.
Commerce also received the amended Renewed San Sebastian Gold Mine
Exploitation Concession/License which basically granted Commerce a
30-year term instead of a 20-year term. Commerce plans to construct an
open-pit, heap-leach plant on the site to process gold though a low
tonnage operation and expand it to 6,000 tons per day. Commerce expects
to be producing annually 100,000 ounces of gold.
These two concessions/licenses give accessibility to additional ore
reserves besides the probable/possible 3.4 million ounces of gold in the
San Sebastian Gold Mine and the ore reserve potential in the Renewed San
Sebastian Gold Mine 42-square kilometer exploration concession acquired
on February 24, 2003. Commerce has under its exploration control a total
of 87 square kilometers or 21,489 acres. This exploration potential
surrounds or is in an area contiguous to the San Sebastian Gold Mine.
For the past 35 years, Commerce has been engaged in the exploration,
exploitation, development and production of precious metals, primarily
gold in the Republic of El Salvador, Central America. The gold ore
reserves at the San Sebastian Gold Mine exceed 1.5 million ounces of
gold.
Commerce's primary objective is to enhance share value by expanding gold
ore reserves, joint venturing with other gold mining entities, and
earning an above average profit when it is back in production. Commerce
also is pursuing an acquisition or merger strategy.
Actual results may differ materially from any forward-looking statement
whether expressed or implied in this announcement. The following risks
and uncertainties which could cause actual results to vary include, but
are not limited to: speculative nature of mineral exploration, precious
metals prices, production and reserve estimates, production costs, cash
flows, environmental and governmental regulations, availability of
financing, judicial proceedings and force majeure events. Most of these
factors are beyond the Commerce's ability to control or predict.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COMMERCE GROUP CORP.
(Registrant)
/s/ Edward L. Machulak
Date: June 14, 2004 __________________________________________
By: Edward L. Machulak, President
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