Mako Mining Provides Corporate Update
January 18, 2019
Mako Mining Corp. (TSX-V: MKO) (the “Company” or “Mako Mining”) is providing an update of its operations in Mexico and Nicaragua.
As a result of the completion of the acquisition transaction by the Company (then named Golden Reign Resources Ltd.) of Marlin Gold Mining Ltd. (see Mako Mining press release dated November 9, 2018), the Company now holds a 100% interest in the La Trinidad heap leach gold operation in Sinaloa State, Mexico (the “La Trinidad Mine”). The La Trinidad Mine declared commercial production in November 2014 and has operated continuously with the exception of pit dewatering following hurricanes Linda in September 2015 and Willa in October 2018.
Most recently, Hurricane Willa, a Category 3 hurricane that crossed over the La Trinidad Mine on October 24, 2018 (see Marlin Gold Mining Ltd. press release dated October 26, 2018), led to a significant amount of water flooding directly into the Taunus pit. The heap leach pad, and its associated infrastructure, also received a significant amount of water during the event. As part of the Company’s emergency planning, pumps were active and working throughout the storm and no environmental discharge occurred. Importantly, no injuries were sustained by any Mako Mining employees or contractors and the crusher and processing plant did not sustain any significant damage.
Mako Mining has been pursuing its insurance claim related to damages resulting from Hurricane Willa, while at the same time pumping water from the Taunus pit and depleting the ore stockpile located next to the crusher. The Company is pleased with the dewatering progress thus far and has now reached bench -56, where 57,020 tonnes of blasted rock at a grade of 1.353 g/t Au are located. The Company expects that mining of bench -56 can commence by month end, at which time crushing and stacking on the leach pad can once again resume. There are an estimated 30,000 ounces of recoverable gold left in the Taunus pit (1). The Company is still evaluating the safest and most effective mine plan to recover the remaining gold ounces.
Although the Company has experience dealing with hurricane related insurance claims, it is not in a position to estimate the amount of the insurance claim or the eventual reimbursement that it will receive, nor is the Company in a position to comment on future cash flows from the La Trinidad Mine until crushing and processing rates return to normal.
Recent drilling at the Las Conchitas area of Mako Mining’s wholly-owned San Albino-Murra Property, located in Nueva Segovia, Nicaragua has generated positive results, highlighted by the following results (See Mako Mining press releases dated November 28 and December 5, 2018):
- San Pablo Zone SP18-03 6.0 m of 4.13 g/t gold and 3.8 g/t silver (vertical hole)
including 1.2 m of 10.42 g/t gold and 7.5 g/t silver
- Intermediate Zone INT18-19 1.2 m of 16.65 g/t gold and 12.1 g/t silver (vertical hole)
- Las Dolores Zone LD18-43 6.1 m of 16.48 g/t gold and 27.7 g/t silver (vertical hole)
- Cruz Grande Zone CG18-24 5.65 m of 23.63 g/t gold and 25.1 g/t silver (vertical hole)
- Cruz Grande Zone CG18-25 4.15 m of 11.31 g/t gold and 12.2 g/t silver (vertical hole)
- Mina Bonanza Zone CG18-28 2.3 m of 10.17 g/t gold and 18.2 g/t silver (vertical hole)
- Mina Bonanza Zone MB18-38 1.8 m of 17.61 g/t gold and 31.2 g/t silver (vertical hole
(Lengths are reported as core lengths. True widths vary depending on drill hole dip; the mineralized intervals shown above utilize a 1.0 g/t gold cut-off grade with no greater than 1.5 metres of internal dilution. For a list of the complete 2018 exploration results, please see the tables titled “2018 Las Conchitas Drilling and Trenching Results” available on our website at www.makominingcorp.com.)
The Company is planning a further diamond drilling campaign to follow up on these high-grade results. Mako Mining intends to commence drilling again in late February 2019.
The Company continues to pursue financing for the San Albino gold deposit, which is a fully permitted, shovel ready, high grade gold deposit. Mako Mining plans to build a 500tpd open pit gold mine and processing facility targeting production of over 40,000 ounces of AuEq annually (2).
Kevin Bullock, P.Eng., a mining Engineer and qualified person (as defined under National Instrument 43-101) has reviewed and approved the scientific and technical information contained in this news release regarding La Trinidad in Mexico. Mr. Bullock is the Chief Executive Officer of the Company.
John M. Kowalchuk, P.Geo., a geologist and qualified person (as defined under NI 43-101) has read and approved the technical information contained in this news release regarding Las Conchitas in Nicaragua. Mr. Kowalchuk is a senior geologist consulting to the Company. Mr. Kowalchuk has verified the data, including drilling, sampling and recovery data by reviewing such procedures on site. There are no known factors that could materially affect the reliability of data collected and verified under his supervision.
Quality Assurance and Quality Control
The Company follows industry standards in its QA&QC procedures. A certified standard sample, or a blank or a field duplicate sample is inserted every 10 samples before the set of samples are sent to the Laboratory. This procedure is applied to all drill and trench samples.
On behalf of the Board,
Kevin Bullock, P.Eng.
- Future planned production estimated at 913,000 tonnes crushed at 1.46 g/t Au totaling 42,800 ounces to be stacked on the leach pad and 67.5% leach recovery.
- Based on Mako Mining’s Preliminary Economic Assessment (PEA) dated April 29, 2015 available on SEDAR and on the Company’s website, and subject to securing financing for the project.
About Mako Mining:
Mako Mining is a publicly listed gold mining, development and exploration company. It operates the producing La Trinidad open-pit, heap leach gold mine in Sinaloa State, Mexico and is developing its San Albino gold project in Nuevo Segovia, Nicaragua. Mako Mining’s primary objective is to bring San Albino into production quickly and efficiently, while continuing exploration of prospective targets in both Mexico and Nicaragua.
Currently, Mako Mining is exploring for gold and silver mineralization on more than 60,200 hectares (602 km2) of land holdings in Sinaloa State, Mexico and on 13,771 hectares (138 km2) at the San Albino-Murra and El Jicaro properties, both in Nueva Segovia, Nicaragua. The Corona de Oro Gold Belt, approximately 3 kilometres wide by 23 kilometres long, contains hundreds of historical mines and workings and spans the entirety of the Company’s Nicaragua land package.
For further information: Mako Mining Corp., Kevin Bullock, Chief Executive Officer, telephone: (416) 408-3703, email: email@example.com or visit our website at www.makominingcorp.com and SEDAR www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain statements contained in this news release may be considered “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to information with respect to the Company’s strategy, plans or future financial or operating performance, including with respect to the Company pursuing its insurance claim in respect of the damages resulting from Hurricane Willa and the eventual recoveries thereunder; future cash flows from the La Trinidad Mine; the expectation that mining at La Trinidad can commence by the end of the month and that crushing and stacking on the lead pad can thereafter resume; the expectation of the Company that there are 30,000 ounces of recoverable gold left in the open pit; expected exploration results and the plan for a further diamond drilling campaign at San Albino to commence in late February 2019; the plan to build a 500tpd open pit gold mine and processing facility targeting production of over 40,000 ounces of AuEq annually at San Albino.
Forward-looking statements are characterized by words such as “plan,” “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company not being successful with its insurance claim; future cash flow of the Company being negatively impacted by delays both at La Trinidad and San Albino; the pumping process and other impacts of Hurricane Willa delaying the commencement of mining at La Trinidad beyond the end of the month also resulting in a further delay in crushing and stacking on the lead pad; the Company not recovering the up to 30,000 ounces of estimated recoverable gold left in the open pit at La Trinidad; the drilling campaign at San Albino being delayed past February 2019; the Company not being able to build a 500tpd open pit gold mine and processing facility at San Albino; the Company not reaching production of over 40,000 ounce of AuEq annually at San Albino; the Company not being successful in securing project financing at its San Albino Project; the Company not achieving its future planned production estimate of 913,000 tonnes crushed at 1.46 g/t Au totaling 42,800 ounces with 65% leach recovery; the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions; fluctuating metal prices; currency exchange rates; the impact of inflation; possible variations in ore grade or recovery rates; unanticipated costs and expenses; and general risks of the mining industry such as failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life; unanticipated weather changes; limitations on insurance coverage and timing and possible outcome of pending claims; as well as those risk factors discussed or referred to herein and in the Company's continuous disclosure available at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company’s expected financial and operational performance and results as at and for the periods presented, and the Company’s plans and objectives, and may not be appropriate for other purposes. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.
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.