Mako Mining Provides Operating Update
May 20, 2021
Mako Mining Corp. (TSX-V: MKO; OTCQX: MAKOF) (“Mako” or the “Company”) is pleased to provide an operating update from its San Albino gold project (“San Albino”) in northern Nicaragua.
All components of the 500 tonne per day gravity and carbon-in-leach (“CIL”) processing plant are fully operational. The plant has been achieving throughputs above 75% of rated capacity, and it has been processing high-grade material with an average grade of 16.5 grams per tonne (“g/t”) since May 12, 2021. While a few more weeks of data are required to provide a precise estimate of metallurgical recoveries, all indications are that gold recoveries are higher than 90%.
On the mining front, an average of 982 tonnes per day (“tpd”) of diluted vein and historical dump material have been mined since the beginning of April (486 tpd year-to-date), with a strip ratio of approximately 10:1 (13:1 year-to-date). The stockpile is now approximately 105,856 tonnes and is comprised of 17,596 tonnes of diluted vein material at 15.37 g/t gold and 88,260 tonnes of historical dump material at 2.47 g/t gold for a total of 15,687 ounces of gold.
These levels of mine and plant throughputs are the thresholds required by Mako to declare commercial production, and provided that the processing plant continues averaging these levels for the remainder of the quarter, Mako expects to be in a position to declare commercial production on July 1, 2021.
The Company’s cash balance, which had decreased due to the delay in the plant’s start-up, has now begun to improve as gold is being recovered and sold. Provided that the plant continues to operate at its current throughput, the Company expects to generate enough cash flow from operations to continue funding exploration and servicing debt. A comprehensive operating update is expected in July, following a full month of statistics from the processing plant.
To make up for the delay in the start-up of the plant, the Company plans to exclusively process high-grade diluted vein material until the end of the quarter, after which time a blend of diluted vein material and historical dump material is expected to be processed. Importantly, mining of the Porcelana Zone is expected to commence in early Q3. The Porcelana Zone is a mineralized zone with the highest grade-thickness profile encountered at San Albino.
Akiba Leisman, Chief Executive Officer of Mako states that, “this is an exciting moment for Mako. Our team has built San Albino in the middle of a global pandemic and after being hit by two major hurricanes during construction. I could not be prouder of the team and look forward to providing further updates on the continued ramp up of operations at San Albino, especially as mining of the Porcelana Zone commences in early Q3.”
Details on Start-Up Issues
The plant experienced minor start-up issues at both the gravity and CIL circuits in April and early May, which have since been resolved. The most impactful of these issues were (a) getting cyanide concentrations up to required levels at the intense cyanidation reactor, which is used to process gravity concentrates; and (b) maintaining sufficient inventories of filter press cloths for the tailings press due to higher than expected wear and tear. In aggregate, there was an approximately five-week delay in getting the plant to reach the level of operations required to declare commercial production, but still within the guidance provided in June 2020 (see press release dated June 22, 2020).
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 Information:Some of the statements contained herein may be considered “forward-looking information” within the meaning of applicable securities laws. Forward-looking information can be identified by words such as, without limitation, “estimate", "project", "believe", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" or variations thereon or comparable terminology. The forward-looking information contained herein reflects the Company’s current beliefs and expectations, based on management’s reasonable assumptions, and includes, without limitation, the Company’s expectation that the processing plant continues averaging at current levels for the remainder of the quarter in order to allow Mako to be in a position to declare commercial production on July 1, 2021 at San Albino; that gold recoveries will prove to be higher than 90%; that the plant continues to operate at its current throughput and the Company generates enough cash flow from operations to continue funding exploration and servicing debt; that a comprehensive operating update will be available in July; that a blend of diluted vein material and historical dump material is will be able to be processed following the current quarter; that the ramp up at San Albino will continue, including mining of the Porcelana Zone commencing in early Q3. 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, changes in plans and parameters, costs, and other factors impacting the Company’s ramp up of operations at San Albino and the declaration of commercial production by July 1, 2021, 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 information regarding the Company’s plans and expectations for 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.
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