Mako Mining Announces US$17.2 Million Exploration Program Funded Through Cash Flow; Intersects 43.73 g/t Gold Over 1.2m (Estimated True Width) Over 100m Outside Current Resource; and Provides Corporate Update
March 9, 2022
Mako Mining Corp. (TSX-V: MKO; OTCQX: MAKOF) (“Mako” or the “Company”) is pleased to report additional results from its recent expansion drilling program at its San Albino Mine in Northern Nicaragua (see press release dated February 2, 2022). The Company has also approved a US$17.2 million exploration program which is expected to be funded through operating cashflow from the mine, and has announced the appointment of a new Vice President of Corporate Development.
San Albino Exploration Results
Results from the recent drill campaign targeting the northerly extension of the West pit at San Albino have confirmed mineralization and indicate the potential for pit expansion along strike and downdip (see drill plan below). An updated 3D geological model is currently being compiled which will be used to run a new pit optimization incorporating the recent assay data. The West pit is presently being mined along with the smaller Central pit, which contains the Arras and Naranjo veins.
Highlights of the Recent Drilling
- 43.73 g/t Au and 24.5 g/t Ag over 2.00m, 1.2m estimated true width (ETW)
- 31.27 g/t Au and 26.5 g/t Ag over 4.50m, 3.6m ETW
- 11.18 g/t Au and 13.3 g/t Ag over 3.55m, 2.0m ETW
Highlights of the program are drill holes SA21-560 and SA21-555, which both successfully confirmed the down dip continuity of the high-grade mineralization. Drill hole SA21-560 intersected a mineralized interval of 43.73 g/t Au and 24.5 g/t Ag over 2.00m (1.20m ETW), 96m from the surface and approximately 101m down dip from the current pit limit (see table and cross section below). Drill hole SA21-555 intersected an interval of 11.18 g/t Au and 13.3 g/t Ag over 3.55m (2.2m ETW), 85m from surface and approximately 50m down dip from the current pit limit. Mineralization remains open along strike and down dip.
Drill hole SA21-550 tested a high-grade zone previously identified by several drill holes. SA21-550 intersected an interval of 31.27 g/t Au and 26.5 g/t Ag over 4.50m (3.6m ETW), 61m from the surface.
Akiba Leisman, CEO of Mako states that “yet again, we are receiving fantastic drilling results from the San Albino mine which will likely significantly increase the mineable resource of the San Albino open pit. The announcement of a $17.2 million exploration program, the vast majority of which is focused on early and mid-stage exploration, and all funded through cash flow, demonstrates how the profitability of the San Albino mine can fund all of the Company’s growth objectives. Lastly, we welcome Paolo Durand as the new Vice President of Corporate Development after having served as a consultant to the Company for the past six months. He has been a valuable member of the team, and we congratulate him on his appointment.”
2022 Exploration Program
- US $17.2 million budget
- 110,080m drilling planned with 9 drill rigs
- 75,080m diamond drilling with 7 drill rigs
- 35,000m Reverse Circulation (“RC”) drilling with 2 drill rigs
- Define additional sources of production for the San Albino mill
- Secure mining permits for new areas of production
- Complete a maiden resource estimate on Las Conchitas
- Make at least 2 significantly new regional discoveries
- Demonstrate that the Corona de Oro Gold Belt is an emerging orogenic gold camp
The Company is aggressively exploring its 100% owned, 188 km2 land package and has multiple projects ranging from resource definition to early-stage exploration and prospecting within the emerging "Corona de Oro" (Golden Crown) Gold Belt.
The "Corona de Oro" Gold Belt is a northwesterly trending, 5-10 km wide belt of metamorphic rocks with stacked, low angle, gold bearing quartz veins interpreted to be "orogenic" gold veins. The belt spans the entirety of the Company’s land package in Northern Nicaragua which extends over 28 km in a northeasterly direction. The area is relatively un-explored using modern exploration techniques.
Mako's large land package puts the Company in a unique position in the industry, giving it the ability to organically generate new exploration targets. The Company is advancing a pipeline of projects on its 100% owned land package that range through the 4 stages of exploration, with the ultimate objective of delivering minable mineral resources to the San Albino mill. (see map)
Over the past 9 years the Company has completed prospecting over approximately 80% of its 188 km2 land package and has identified several hundred occurrences of gold bearing quartz veins (gold > 1 g/t). Outcrops in the area are rare and nearly all the gold occurrences were exposed in historical workings. The first phase of exploration is prospecting, in which anomalous areas are identified through regional mapping and sampling of prospects and historical workings. Over 900 historical adits, prospect pits and mine dumps have been identified to date and are ready to be advanced to the next phase of exploration.
Potrerillos and La Segoviana, two newly acquired concessions, are early-stage exploration targets that the Company is planning to advance to a drilling stage through use of detailed mapping, trenching and soil sampling. Nearly 19% of the 2022 drilling budget is dedicated to early-stage exploration. Approximately 21,000m of drilling are planned on these two concessions.
Arras, San Albino North, Las Conchitas North and Las Conchitas Central are mid-stage exploration projects which include initial drill testing and subsequent follow-up drill programs with the objective of making a new economic discovery and determining the extents of mineralization. Approximately 56% of the 2022 drilling budget is dedicated to mid-stage exploration on these 4 project areas with approximately 62,000m of drilling planned.
West Pit, SW Pit and Las Conchitas South areas are considered to be advanced-stage exploration projects where the Company plans to delineate mineral resources through drilling and completing accompanying studies, such as metallurgy, rock mechanics, hydrology, environmental, socio-economic studies, among others. with the objective of bringing one or more of these projects into production. Approximately 25% of the 2022 drilling budget is dedicated to advanced-stage exploration on these 3 project areas, and the company plans to complete a maiden mineral resource estimate in 2022 and initiate the mine permitting process. Approximately 27,000m of drilling are planned on these three project areas.
West Pit, San Albino Deposit – Advanced-Stage Exploration – Near Mine
The Company recently completed an expansional and infill drilling program at the West Pit. The objectives of the 2021-2022 drilling program were to determine the continuity of the mineralized zone and to expand the current open pit mineral resources down dip and along strike at the West Pit, which is currently being mined. Highlights of the program are drill holes SA21-560, which intersected a mineralized interval of 43.73 g/t Au and 24.5 g/t Ag over 2.00m (1.20m ETW) (see table below), and SA21-552, which intersected an interval of 22.20 g/t Au and 23.1 g/t Ag over 3.80m (3.30m ETW) (see press release dated February 2, 2022). Both drill holes tested down dip potential below currently defined mineral resources at the northwest end of the West Pit.
Southwest (SW) Pit – Advanced-Stage Exploration – Near Mine
The SW pit is situated within the permitted pit at the south end of the San Albino Deposit. Previous drilling has defined a limited, shallow mineral resource and identified a deeper, high-grade mineralized zone. Highlights of the previous drilling are drill holes SA20-443 which intersected 62.04 g/t Au and 28.55 g/t Ag over 2m (1.5m ETW), 15m from surface (see press release dated March 16, 2021) and SA21-536 which targeted a lower zone and intersected 31.70 g/t Au and 39.2 g/t Ag over 2.40 m (1.55m ETW) 64m from surface (see press release dated February 02, 2022). The objective of the drilling within this area is to extend the known mineralization and to delineate new mineralization within the current permitted pit boundary. Currently, the company is drilling this area with two drill rigs, targeting both the upper and lower mineralized zones.
Arras – Mid-Stage Exploration - Near Mine
Exploration conducted by the Company to date has identified the potential to define additional shallow, high-grade mineralization in the Arras area. The Company is planning to complete a RC drilling campaign to quickly identify new, near-surface drill targets near the operating mine.
San Albino North – Mid-Stage Exploration
The San Albino North target lies immediately to the north of the San Albino Gold Deposit straddling two concessions, the San Albino-Murra and Potrerillos concessions. Prospecting over the area identified two main drill targets; the Cerro Piedra Negra and El Callejon prospects. The Cerro Piedra Negra is situated approximately 380m north of San Albino which is comprised of two collapsed adits, ten hillside cuts and several small pits and adits and appears to be following a vein over a distance of 1,300m. The El Callejon prospect is situated northwest of the Cerro Piedra Negra prospect. The Company plans to complete a RC drilling program north of the San Albino Mine area with the goal of defining new near-surface targets, followed by core drilling targeting deeper mineralization on both prospects.
The Las Conchitas area covers approximately 3.75 km2 and is situated immediately to the south of the San Albino Deposit and immediately to the north of the historical El Golfo Mine located within the Company’s El Jicaro Concession. The Las Conchitas area, thus far, has been subdivided into three primary areas: Las Conchitas North (“LC-North”), Las Conchitas Central (“LC-Central”) and Las Conchitas South (“LC-South”). Each of these areas are comprised of multiple subparallel, northeast-southwest striking and gently dipping mineralized veins. The current drill program at Las Conchitas has been ongoing with two diamond drill rigs. The Company plans to complete a maiden mineral resource and initiate the mine permitting process in 2022.
Las Conchitas South – Advanced-Stage Exploration
The LC-South area has seen the most exploration outside of the San Albino area and is currently the most advanced exploration target. To date, 3,528 m of trenching and 35,520 m of diamond drilling have been completed in the LC-South area. LC-South is comprised of four mineralized zones; Las Dolores, Bayacun, Mango and El Limon. The mineralized zones consist of multiple parallel quartz veins, with a similar minerology and morphology to San Albino, trending in a northeast-southwest direction, with a shallow northwest dip.
Highlights of drilling at the LC-South are as follows:
- LC20-277 grading 22.26 g/t Au and 44.6 g/t Ag over 4.50m (4.30m ETW) (see press release dated August 31, 2020)
- LC20-246 40.52 g/t Au and 67.3 g/t Ag over 4.30m (2.10m ETW) (see press release dated June 22, 2020)
- LC11-01 intersected 62.96 g/t Au and 61.7 g/t Ag over 3.0m (see press release dated February 22, 2012)
- LC19-70 intersected 376.49 g/t Au and 103.0 g/t Ag over 1m (see press release dated May 06, 2019)
Las Conchitas North – Mid-Stage Exploration
Initial drilling in 2018 has identified two mineralized areas; the San Pablo and Intermediate areas, containing highly mineralized quartz veins similar in nature to those found at San Albino.
Highlights of drilling:
- INT11-03 intersected 28.45 g/t Au and 53.7 g/t Ag over 5.0m (see press release dated September 11, 2013)
- INT18-19 intersected 16.65 g/t Au and 12.1 g/t Ag over 5.0m (see press release dated November 28, 2018)
- SP18-03 intersected 4.13 g/t Au and 3.8 g/t Ag over 6.0m (see press release dated November 28, 2018)
Las Conchitas Central – Mid-Stage Exploration
Two mineralized veins have been identified in the area. Previously, limited exploration work has confirmed the Company’s structural model, where parallel veins, with an overall northeast–southwest trend, occur within highly strained zones.
Highlights of drilling: Cruz Grande Zone: (see press release dated January 18, 2019).
- CG18-24 intersected 23.63 g/t Au and 25.1 g/t Ag over 5.65m
- CG18-25 intersected 11.31 g/t Au and 12.21 g/t Ag over 4.15m
- CG18-28 intersected 10.17 g/t Au and 18.2 g/t Ag over 2.3m
- MB18-38 intersected 17.61 g/t Au and 31.2 g/t Ag over 1.8m
Potrerillos Concession – Early-Stage Exploration
The reconnaissance exploration program completed by Mako to date covers the entire concession, which comprises numerous historical workings that exploited shallow dipping, high-grade gold veins. Approximately 6.7 km of potential strike length has been identified along a northeast striking mineralized trend that runs for approximately 9.5 km between San Albino and several prospects along the Potrerillos and San Albino-Murra concessions. The Company intends to complete a soil survey focusing on generating additional exploration targets and comprehensive structural/geological mapping, which are anticipated to be drilled tested, in due course.
La Segoviana Concession – Early-Stage Exploration
Initial mapping and sampling of exposed mineralized veins, local mine dumps and underground workings at the La Segoviana Concession have confirmed the existence of high-grade gold mineralization over a significant strike potential at four prospects including, La Reforma, El Silencio, San Luis-Caballo and Minas America.
Appointment of Vice President, Corporate Development
The Company has appointed Paolo Durand as Vice President, Corporate Development. Mr. Durand has more than 12 years of combined Banking, Financial Control & Budgeting, and Business Development expertise in the mining sector. He previously served as Corporate Head of Cost & Budget with Minsur SA (a major Peruvian producer of tin and precious metals), Business Development Manager with Minera Volcan as well as a Senior Equity Research Analyst with Credicorp Capital. Paolo received a double degree in Economics (B.A) and Corporate Financial Management (B.B.A) at St. Mary’s University, TX as well as a MBA from HEC, Paris.
The Board has approved a grant of stock options to Mr. Durand in the total amount of 700,000 options, to be priced based on the 5-day volume weighted average price of the Company’s common shares on the TSX Venture Exchange ending on the fifth trading day following this news release, or March 16, 2022. The options shall vest as to 25% immediately, and 25% on each of the next 3 anniversaries, and shall expire on March 9, 2027.
Table 1: Assay Results Reported in This Press Release
|Area||Drill hole||From (m)||To (m)||Width (m)||Au (g/t)||Ag (g/t)||Interval||ETW (m)|
|West Pit||SA21-550*||53.90||54.80||0.90||32.30||21.00||31.27 g/t Au and 26.5 g/t Ag over 4.50 m||3.6|
|SA21-553||59.50||60.00||0.50||9.05||9.9||10.03 g/t Au and 8.4 g/t Ag over 1.00 m||0.9|
|SA21-554||58.60||59.50||0.90||1.76||2.9||1.76 g/t Au and 2.9 g/t Ag over 0.90 m||0.9|
|SA21-555*||93.80||94.60||0.80||42.10||28.0||11.18 g/t Au and 13.3 g/t Ag over 3.55 m||2.0|
|SA21-556||70.40||70.90||0.50||18.50||110.0||18.50 g/t Au and 110.0 g/t Ag over 0.50 m||0.5|
|SA21-557||90.50||91.00||0.50||2.00||0.5||2.00 g/t Au and 0.5 g/t Ag over 0.50 m||0.4|
|93.00||93.70||0.70||27.60||16.4||27.60 g/t Au and 16.4 g/t Ag over 0.70 m||0.5|
|SA21-558 to SA21-559||Anomalous values|
|SA21-560||29.00||30.00||1.00||4.57||17.1||4.57 g/t Au and 17.1 g/t Ag over 1.00 m||0.9|
|115.30||115.70||0.40||1.64||2.5||43.73 g/t Au and 24.5 g/t Ag over 2.00 m||1.2|
|SA21-563||48.50||48.90||0.40||3.79||13.9||3.79 g/t Au and 13.9 g/t Ag over 0.40 m||0.4|
|SA21-564||37.00||37.50||0.50||9.94||22.7||9.94 g/t Au and 22.7 g/t Ag over 0.50 m||0.4|
|39.00||39.80||0.80||21.50||94.0||13.88 g/t Au and 48.9 g/t Ag over 1.70 m||1.7|
|SA21-565||51.60||52.10||0.50||13.40||80.3||13.40 g/t Au and 80.30 g/t Ag over 0.50 m||0.4|
|SA21-566||44.70||45.40||0.70||3.93||19.0||2.22 g/t Au and 14.4 g/t Ag over 1.90 m||1.5|
|SA22-567||50.50||51.50||1.00||7.00||11.6||7.00 g/t Au and 11.6 g/t Ag over 1.00 m||1.0|
|SA22-568||No significant results|
|SA22-570||17.30||18.00||0.70||37.30||83.0||24.46 g/t Au and 65.6 g/t Ag over 1.50 m||1.4|
|SA22-572||23.40||24.00||0.60||16.20||46||16.20 g/t Au and 46.0 g/t Ag over 0.60 m||0.5|
|26.70||27.20||0.50||3.40||8.3||3.40 g/t Au and 8.3 g/t Ag over 0.50 m||0.5|
|SA22-573||56.50||57.60||1.10||1.02||4.0||1.02 g/t Au and 4.0 g/t Ag over 1.10 m||1.1|
|111.10||111.70||0.60||22.20||37.5||14.89 g/t Au and 23.5 g/t Ag over 1.60 m||1.5|
|SA22-574||103.00||104.00||1.00||23.70||12.5||12.72 g/t Au and 7.4 g/t Ag over 2.00 m||1.5|
|SA21-540||86.50||86.90||0.40||4.53||35.90||1.88 g/t Au and 9.9 g/t Ag over 2.50 m||1.6|
|SA21-541||86.60||87.30||0.70||1.32||1.20||3.98 g/t Au and 7.9 g/t Ag over 4.10 m||3.5|
|SA21-542||44.00||44.40||0.40||3.56||21.3||3.56 g/t Au and 21.3 g/t Ag over 0.40 m||0.3|
|102.50||103.00||0.50||6.04||8.9||6.04 g/t Au and 8.9 g/t Ag over 0.50 m||0.4|
|SA21-543||2.50||3.50||1.00||1.01||0.6||1.01 g/t Au and 0.6 g/t Ag over 1.00 m||1.0|
|94.00||94.60||0.60||1.53||6.3||1.53 g/t Au and 6.3 g/t Ag over 0.60 m||0.6|
|109.90||111.00||1.10||8.00||49.4||13.51 g/t Au and 36.1 g/t Ag over 1.90 m||1.8|
|SA21-544 to SA22-546||Pending|
|SA22-547||73.80||74.30||0.50||9.69||43.5||8.90 g/t Au and 28.4 g/t Ag over 1.30 m||0.9|
|SA22-548 to SA22-549||Pending|
|SA22-600 to SA22-606||Pending|
Note: *Intervals contain samples with internal dilution over 1m, as the samples were interpreted as a part of the same zone
Sampling, Assaying, QA/QC and Data Verification
Drill core was continuously sampled from inception to termination of the entire drill hole. Sample intervals were typically one meter. Drill core diameter was HQ (6.35 centimeters). Geologic and geotechnical data was captured into a digital database, core was photographed, then one-half split of the core was collected for analysis and one-half was retained in the core library. Drill core was kept in a secured logging and storage facility until such time that they were delivered to the Managua facilities of Bureau Veritas and pulps were sent to the Bureau Veritas laboratory in Vancouver for analysis. Gold was analyzed by standard fire assay fusion, 30 gram aliquot, AAS finish. Samples returning over 10.0 g/t gold are analyzed utilizing standard Fire Assay-Gravimetric method. The Company follows industry standards in its QA&QC procedures. Control samples consisting of duplicates, standards and blanks were inserted into the sample stream at a ratio of 1 control sample per every 10 samples. Analytical results of control samples confirmed reliability of the assay data.
John M. Kowalchuk, P.Geo, a geologist and qualified person (as defined under National Instrument 43-101) has read and approved the technical information contained in this press release. Mr. Kowalchuk is a senior geologist and a consultant to the Company.
On behalf of the Board,
Mako Mining Corp. is a publicly listed gold mining, development and exploration company. The Company operates the high-grade San Albino gold mine in Nueva Segovia, Nicaragua, which ranks as one of the highest-grade open pit gold mines globally. Mako’s primary objective is to operate San Albino profitably and fund exploration of prospective targets on its district-scale land package.
For further information: Mako Mining Corp., Akiba Leisman, Chief Executive Officer, Telephone: 203-862-7059, E-mail: email@example.com or visit our website at www.makominingcorp.com and SEDAR www.sedar.com.
Forward-Looking Information: Statements contained herein, other than historical fact, may be considered “forward-looking information” within the meaning of applicable securities laws. The forward-looking information contained herein is based on the Company’s plans and certain expectations and assumptions, including that the US$17.2 million exploration program will be funded through operating cashflow from the mine, that the results of the various drilling campaigns discussed herein will confirm the Company’s stated expectations, that the Company will achieve its stated deliverables, goals and targets herein and within the timeframes expected, that the stock options granted to Mr. Durand will vest and expire in accordance with the terms stated; and that the Company can operate San Albino profitably in order to fund exploration of prospective targets on its district-scale land package. Such forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking information, including, without limitation, the Company receiving unanticipated future exploration and drilling results, unanticipated delays and/or costs in achieving targets and goals stated, the expiry of the stock options granted to Mr. Durand expiring prior to and without full vesting pursuant to the terms of the Company’s Omnibus Incentive Plan, and other risks and uncertainties as disclosed in the Company’s public disclosure filings on SEDAR at www.sedar.com. Such information contained herein represents management’s best judgment as of the date hereof, based on information currently available and is included for the purposes of providing investors with the Company’s updates regarding its exploration and development plans and its 2022 exploration budget and may not be appropriate for other purposes. Mako does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.