Infill Drilling at San Albino Intersects 60.72 g/t Gold and 66.4 g/t Silver over 3.1 Meters (Estimated True Width)
September 4, 2019
Mako Mining Corp. (TSX-V: MKO) (“Mako” or the “Company”) is pleased to report positive results from the infill drilling program at its wholly-owned San Albino gold project (“San Albino”) located in Nueva Segovia, Nicaragua.
As part of the ongoing pre-development work at San Albino, approximately 2,200 m of infill grade-control drilling has been completed in 69 diamond drill holes focused on the San Albino Zone within the West Pit (see attached map). Assay results have been received for the first 16 holes, nine of which intersected the San Albino Zone as projected, four holes encountered historic workings where the San Albino Zone was projected and three holes intersected historic dump material in the shallow projections of the San Albino Zone.
The highlight of the infill drilling program thus far is hole SA19-155 which intersected 21.8 g/t Au and 63.0 g/t Ag over 3.0 m (1.5 m estimated true width) and 60.72 g/t Au and 66.4 g/t Ag over 6.5 m (3.1 m estimated true width). The mineralization starts approximately four meters from surface and the two intercepts are separated by only 1.5 m grading 0.86 g/t Au and 6.1 g/t Ag (see attached cross section).
The mineralization in SA19-155 is hosted in what the Company is calling Porcelana-style mineralization, which is described as a very large, coherent, unfractured quartz vein that typically contains visible gold (“Porcelana”). This style of mineralization is part of the San Albino Zone and was first drilled in 2016 as part of a metallurgical/infill drilling program (see press release dated June 16, 2016). Importantly, the 2016 and 2019 drill holes containing Porcelana are not included in the Company’s Preliminary Economic Assessment for the San Albino Gold Deposit dated April 29, 2015 (the “PEA”) and available on the Company’s website and under the profile of the Company on SEDAR at www.sedar.com.
In order to drill the strike and down dip extension of the area within the San Albino Zone containing Porcelana, the Company has decided to designate one drill rig to this area while a fifth drill rig has been requisitioned to complete the planned infill drilling elsewhere on the San Albino property as scheduled.
Akiba Leisman, Chief Executive Officer of Mako states “SA19-155 is one of the highest grade-thickness intercepts drilled at San Albino to date. The fact that this mineralization starts approximately four meters from surface and is within our current open pit mine plan means that even small amounts of strike and dip extensions of Porcelana-style mineralization may have a material impact on the economics of the San Albino gold project. Mako has dedicated a rig for the sole purpose of finding extensions of this area, and the Company is fully prepared to adjust its mine plan to bring these ounces into production earlier if drilling results support this decision.”
Furthermore, certain infill drill holes focused on the San Albino Zone have hit grades well in excess of the average resource grade in the PEA highlighted by SA19-144 which intersected 84.7 g/t Au and 158 g/t Ag over 0.8 m (estimated true width) and SA19-145 which intersected 73.2 g/t Au and 105 g/t Ag over 1.3 m (estimated true width).
Although the focus of the current infill drilling program was the San Albino Zone within the West Pit, three infill holes were drilled into the Arras Zone totaling 140.4 m (see attached map). The Arras Zone projects near surface to the southeast of the West Pit in the Central Pit area. The best of the three holes drilled into the Arras Zone was AR19-115 which intersected 24.18 g/t Au and 28.5 g/t Ag over 6.45 m (5.9 m estimated true width) approximately 29 m from surface.
Mako began drilling the Arras Zone as new drill pads were being prepared for drilling at the San Albino Zone. The results from Arras Zone will be followed up on after the ongoing 6,000 m West Pit infill program is completed later this year.
2019 Infill Drilling Program Assay Results
|SA19-144||16.8||17.6||0.8||84.70||158.0||San Albino Zone||84.70 g/t Au and 158.0 g/t Ag over 0.80 m||0.8|
|SA19-145||14.3||15.6||1.3||73.20||105.0||San Albino Zone||73.20 g/t Au and 105.0 g/t Ag over 1.30 m||1.3|
|SA19-146||25.7||26.7||1.0||5.93||30.8||San Albino Zone||5.93 g/t Au and 30.8 g/t Ag over 1.00 m||1.0|
|24.1||25.1||1.0||22.50||41.6||San Albino Zone||11.82 g/t Au and 22.3 g/t Ag over 2.00 m||1.9|
|6.1||7.2||1.1||9.83||23.4||San Albino Zone||8.62 g/t Au and 19.7 g/t Ag over 4.10 m||2.8|
|SA19-154||4.7||5.7||1.0||8.33||10.0||San Albino Zone||11.65 g/t Au and 16.6 g/t Ag over 3.10 m||2.1|
|SA19-155||8.5||9.5||1.0||30.00||62.0||San Albino Zone (Upper)||21.75 g/t Au and 63.0 g/t Ag over 3.00 m||1.5|
|11.5||13.0||1.5||0.86||6.1||1.5 m sample not included in composites||--||--|
|13.0||14.0||1.0||80.40||72.0||San Albino Zone (Lower)||60.72 g/t Au and 66.4 g/t Ag over 6.50 m||3.1|
|SA19-157||28.5||29.5||1.0||15.20||24.9||San Albino Zone||15.20 g/t Au and 24.9 g/t Ag over 1.00 m||0.9|
|SA19-158||33.1||34.5||1.4||33.20||39.3||San Albino Zone||33.20 g/t Au and 39.3 g/t Ag over 1.40 m||1.3|
|SA19-159||34.2||35.2||1.0||6.21||24.4||San Albino Zone||6.21 g/t Au and 24.4 g/t Ag over 1.00 m||1.0|
|23.90||25.00||1.10||44.00||32.3||Arras Zone||24.18 g/t Au and 28.5 g/t Ag over 6.45 m||5.9|
|20.90||22.00||1.10||19.20||16.8||Arras Zone||19.20 g/t Au and 16.8 g/t Ag over 1.10 m||1.1|
The mineralized intervals shown above utilize a 1.0 g/t gold cut-off grade with not more than 1.0 meter of internal dilution. *Indicates fire assays with gravimetric finish, assays utilizing the metallic screening method are pending. **True width is estimated from interpreted sections. ***Indicates use of metallic screening method for assays.
These results will be incorporated into our production model and initial mine plan, where the company anticipates beginning commercial production by late summer of 2020. The Company does not intend to complete a Prefeasibility or Feasibility Study prior to commencing production.
The Company advises that it is not basing its production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially minable deposit. Accordingly, there are multiple technical and economic risks of failure which are associated with this production decision. These risks, among others, include areas that are analyzed in more detail in a feasibility study, such as applying economic analysis to resources and reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts. The Company’s PEA is available under the Company’s profile on SEDAR at www.sedar.com.
Sampling, Assaying, QA/QC and Data Verification
Drill core was continuously sampled from inception to termination of the 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. Samples were 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. Due to the presence of coarse gold, the Company has used 500-gram metallic screened gold assays for analyzing samples that yielded a fire assay result greater than 1 g/t, and samples immediately above and below drilled veins. This method, which analyzes a larger sample, can be more precise in high-grade vein systems containing coarse gold. All reported drill results in this press release used the standard Fire Assay-Gravimetric method unless otherwise indicated as using the metallic screening 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. No top cut has been applied to the reported assay results.
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 press release. Mr. Kowalchuk is a senior geologist and a consultant to the Company.
On behalf of the Board,
Chief Executive Officer
Mako Mining Corp. is a publicly listed gold mining, development and exploration firm. The Company is developing its high-grade San Albino gold project in Nueva Segovia, Nicaragua. Mako’s primary objective is to bring San Albino into production quickly and efficiently, while continuing exploration of prospective targets in Nicaragua.
For further information: Mako Mining Corp., Akiba Leisman, Chief Executive Officer, Telephone: 203-862-7059, E-mail: firstname.lastname@example.org or visit our website at www.makominingcorp.com and SEDAR www.sedar.com.
Forward-Looking Statements: Some of the statements contained herein may be considered “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is based on certain expectations and assumptions, including that the Company’s exploration and in-fill drilling programs will be successfully completed; that any outstanding assay results will be as anticipated; that the Porcelana-style mineralization discovered is anticipated to have a material impact on the economics of the San Albino gold project; that the Company will be able to successfully adjust its mine plan based on anticipated successful drilling results; that although the Company’s production decision at its San Albino project is not based on a technical study supporting mineral reserves, and therefore not based on demonstrated economic viability, management currently believes the project is on track to achieve its first gold pour by the late summer of 2020; that the Company will be successful in any proposed financing plans necessary for the construction at the San Albino project. and such other risk factors as outlined in the continuous disclosure documents of the Company filed on SEDAR at www.sedar.com. 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 risks that additional satisfactory exploration results at San Albino will not be obtained; that the PEA is preliminary in nature and there is no certainty that the PEA will be realized; the risk of economic and/or technical failure at the San Albino project associated with basing a production decision on the PEA without demonstrated economic and technical viability; that exploration results will not translate into the discovery of an economically viable deposit; risks and uncertainties relating to political risks involving the Company’s exploration and development of mineral properties interests; the inherent uncertainty of cost estimates and the potential for unexpected costs and expense; commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. 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 plans and expectations at its San Albino project 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.Mako Mining Corp. (TSX-V: MKO) (“Mako” or the “Company”) is pleased to report positive results from the infill drilling program at its wholly-owned San Albino gold project (“San Albino”) located in Nueva Segovia, Nicaragua.