Mako Mining Corp. (TSX-V: MKO; OTCQX: MAKOF) (“Mako” or the “Company”) is pleased to provide first quarter 2022 (“Q1 2022”) production results from its San Albino gold mine (“San Albino”) in northern Nicaragua, which is the third full quarter of production results since declaring commercial production on July 1, 2021. Financial results for Q1 2022, including detailed reporting of our operating costs, are expected along with our Q1 2022 Financial results in May.
Q1 2022 Production Highlights
Akiba Leisman, Chief Executive Officer of Mako states that, “this quarter was the third full quarter of commercial production at San Albino. The mine is performing well, where the diluted vein material continues to positively reconcile to the resource model in grade and ounces, and mill throughput has been running at above nameplate capacity of 500 tonnes per day, including all availability factors. The mill averaged 596 tonnes per day for the quarter at 87% availability, which is a 22% improvement over the previous quarter including mill availability (46,869 tonnes milled in Q1 2022 vs. 38,313 tonnes milled in Q4 2021). Replenishment of spare parts and minor adjustments to the plant improved mill availability and throughput for the first quarter of 2022, and we expect to be running at or above nameplate capacity for the foreseeable future. Now that the mill is processing mainly fresh material instead of the oxide material from last year, recoveries were running at 85.6%, which is inline with the 86% metallurgical recoveries predicted in our December 2019 metallurgical update (see press release dated December 13, 2019). The plant is going through a series of optimizations, expected to be completed in Q2 2022, and we are optimistic that minor improvements in recoveries can be made thereafter. 9,580 ounces were sold and operating cash flow from the mine remains robust, with exploration expenditures increasing, waste development accelerating ahead of the rainy season, payables fully normalized from elevated levels during ramp-up, and over US$4 million of principal being repaid since the end of Q4 2021 (over US$7 million of principal since the end of Q3 2021).”
Table 1 – Production Results
* Includes historical dump, hanging wall, foot wall, historical muck and all other non-vein mineralized material above cutoff grade
**For the purpose of calculating revenue, payments to Sailfish are deducted from the Average Realized Price
Table 2 – Mining by phases Q1 2022
Table 3 – Quarter End Stockpile Statistics
* Includes stockpiles of mineralized material at the crusher.
** Includes historical dump, hanging wall, foot wall, historical muck and all other non-vein mineralized material above cutoff grade.
Mining
The mine averaged 553 tpd of diluted vein material and historical dump + other in Q1 2021 with a strip ratio of 17.9 from the main West Pit, and 30.5x inclusive of the Central Pit (Arras Zone) and West Pit Phase 2 waste development (see Table 1). The stockpile is now 148,050 tonnes and is comprised of 2,959 tonnes of diluted vein material at 7.95 g/t Au and 145,091 tonnes of historical dump + other at 2.25 g/t Au for a total of 11,269 oz Au (see Table 3).
Since the end of March, most of the diluted vein material has been coming from 79% Porcelana Zone and 21% Arras Zone, which is being blended with historical dump + other at the mill. The Porcelana Zone, which has the highest grade-thickness profile encountered at San Albino, is expected to make up the majority of the diluted vein tonnes for the foreseeable future.
At the beginning of Q1, the pre-strip for phase 2 West Pit development commenced, and the mining contractor was instructed to accelerate waste development prior to the start of rainy season in May. The strip ratio just for the Phase 1 Pit was 17.9x and including the accelerated waste development it was 30.5x.
Milling
All components of the 500 tpd gravity and carbon-in-leach processing plant have been fully operational since the beginning of May 2021. During Q1, 2022, the plant has been averaging 596 tpd at 87% availability (see Table 1). In the first quarter of 2022 the plant processed 47% diluted vein material and 53% historical dump + other to achieve an average blended grade of 7.20 g/t Au and recovering an average of 85.6% (see Table 1).
The first quarter of 2022 saw the mill operate at a throughput rate significantly higher than previous quarters. This was due primarily to improved operational performance. The recovery was lower than previous quarters due to the much higher amount of fresh feed which contains a higher amount of organic carbon. Further mill optimization efforts, which include optimizing grind size and lowering cyanide concentrations from the recycled plant water, are planned in the months ahead to more effectively treat the increased quantity of fresh ore feeding the mill.
An additional carbon stripping vessel is being fabricated to increase stripping capacity in the elution circuit, which is expected to be operational in Q3 2022. Wood and other debris from historical mining has impacted the operating time of the existing carbon stripping circuit. Procedures implemented in the mine have been effective in addressing some of the problems from debris from historic mining but an additional stripping vessel is expected to fully debottleneck this part of the plant.
All of the above mentioned improvements to the processing plant have helped the plant achieve processing rates of an average of 596 tpd in Q1 2022, with over 9,500 ounces of gold sold for the second consecutive quarter (see Table 1).
Qualified Person
John Rust, a metallurgical engineer and qualified person (as defined under NI 43-101) has read and approved the technical information contained in this press release. Mr. Rust is a senior metallurgist and a consultant to the Company.
On behalf of the Board,
Akiba Leisman
Chief Executive Officer
About Mako
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: aleisman@makominingcorp.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 Q1, 2022 detailed operating costs and financial results will be available in May 2022; that the replenishment of spare parts and minor adjustments to the plant are expected to further improve mill availability for the first quarter of 2022 and beyond; that we expect to be running at or above nameplate capacity for the foreseeable future; that plant optimizations are expected to be completed in Q2 2022, and that we are optimistic that minor improvements in recoveries can be made thereafter; the Porcelana Zone is expected to make up the majority of the diluted vein tonnes for the foreseeable future; now that the gravity circuit is operating continuously it is expected to improve recoveries and reduce processing costs of the high-grade mineralization coming from the Porcelana Zone; the additional carbon stripping vessel is expected to increase stripping capacity in the elution circuit and be operational in Q2 2022; ;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 risk that the expected improvements noted will not be completed in the timeframes expected and/or will lead to the improvements expected;that theCompany’s not successful in operating San Albino profitably and/or fund its exploration of prospectus targets on its district-scale land package; political risks and uncertainties involving the Company’s exploration properties; the inherent uncertainty of cost estimates and the potential for unexpected costs and expense; commodity price fluctuations 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 expectations regarding the Company’s production results at San Albino gold 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.
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Mako Mining Corp.
838 West Hastings St.
Suite 700
Vancouver, BC V6C 0A6
info@makominingcorp.com