TSX-V: MKO
VANCOUVER, Nov. 6, 2019 /CNW/ - Mako Mining
Corp. (TSX-V: MKO) ("Mako" or the "Company") is pleased to
provide an update on the ongoing project development and
exploration programs at its fully-permitted San Albino project in
Nueva Segovia, Nicaragua ("San Albino"), the status of the
Company's Mexican operations and important information for the
upcoming Annual and Special Meeting of Shareholders to be held on
December 4, 2019.
Nicaragua Update
Development work at San Albino is proceeding on schedule. The
crusher has been purchased and is expected to be delivered to site
over the course of the next six weeks. Importantly, the crusher is
capable of handling over 1,000tpd, which allows for an increase in
throughput beyond the 500tpd permit granted in September 2017. Earthworks for the mill platform
are now complete. Numerous second-hand mills have been identified
with plans to select the best one for the project by the end of
2019. Plant construction is still on track for completion by the
summer of 2020.
Although only 7,000 m of infill
grade-control drilling were planned at San Albino, the positive
results encountered to date have extended the program to over
9,600 m and 224 diamond drill
holes. Specifically, the decision to dedicate one drill rig
to testing the strike and down dip extensions of the near surface
high-grade Porcelana-style mineralization has yielded some of the
highest grade x thickness intercepts in the Company's history (see
press releases dated September 4,
2019, September 26, 2019 and
October 17, 2019). In an attempt to
aggressively test the down dip extension of the Porcelana-style
mineralization, hole SA19-299 was drilled well outside the ultimate
pit limit (approximately 70 m down
dip) as defined in the Company's Preliminary Economic Assessment
for the San Albino Gold Deposit dated April
29, 2015 (the "PEA") and available on the Mako's website and
SEDAR profile at www.sedar.com. The Company is pleased to report
that hole SA19-299 has intersected a relatively thick zone (greater
than 4 m) of sulfide mineralization
that has previously been associated with high gold grades.
An additional batch of infill drilling results will be ready for
dissemination shortly, with remaining assay results, including hole
SA19-299, to be released as they are received.
Once infill drilling at San Albino is complete, the Company
plans to move certain drill rigs to the Las Conchitas area
(approximately three kilometers to the south) to supplement
exploration work currently ongoing with a single rig. The
mobilization of additional rigs to this area is part of the
Company's goal of producing a maiden resource at Las Conchitas.
Pending assay results from ongoing drilling at Las Conchitas are
expected back from the lab soon and ready for dissemination later
this month.
The Company is also pleased to announce that only two major
milestones remain in order to commence mining at San Albino; an
update to the geological model and mine plan following completion
of the infill drill program, and the delivery of laboratory
equipment from Mexico to
Nicaragua. The Company expects
both of these items to be complete by January such that mining can
commence at San Albino in February.
Mexico Update
At the La Trinidad mine in
Sinaloa, Mexico, gold production
is nearing conclusion, with gold sales being used to fund ongoing
reclamation and severance costs. Nearly all of the mining and
process plant equipment has been moved to the United States with the exception of the
laboratory equipment, which will be moved to Nicaragua imminently. Surplus equipment is
expected to be sold over the coming months.
As discussed in a previous corporate update (see press release
dated August 9, 2019), the Company
has been unsuccessful in receiving any insurance proceeds from
damages sustained at the La
Trinidad mine from Hurricane Willa in October 2018. Mako, through its subsidiaries Oro
Gold de Mexico, S.A. de C.V.
("OGM") and Marlin Gold Mining, Ltd., has filed a lawsuit against
the Company's insurance provider, Seguros Afirme, S.A. de C.V.
("Afirme"), for over US$7 million in
Mexico, and Mako with these
subsidiaries also filed suit against Afirme's reinsurance providers
in the United States. The
La Trinidad mine was severely
damaged due to Hurricane Willa and the denial of payment by Afirme
is viewed as unacceptable. There are currently no insurance
receivables booked on Mako's balance sheet, so any payment(s)
received above the costs of the suit will be treated as a gain.
The Company is pleased to report that its Mexican subsidiary OGM
has reached a settlement agreement with the primary mining
contractor at the La Trinidad
mine. The mining contractor was owed approximately US$11.3 million by OGM. Despite being ring-fenced
from the rest of Mako's corporate structure, the Company chose to
settle with the contractor by making a US$4
million upfront payment and agreeing to make two additional
US$1 million payments 12 months and
24 months from signing of the settlement agreement. As this
liability was being accounted for at approximately US$11.3 million, a substantial accounting gain is
expected in the next quarterly report.
Nearly all of the remaining payables held at OGM are concession
taxes owed to the Mexican government, and are completely
ring-fenced from Mako and its other subsidiaries. The Company plans
to liquidate the remaining Mexican assets in due course and does
not anticipate any further payments to settle any outstanding
liabilities.
Annual and Special Meeting of Shareholders
Mako's Annual and Special Meeting of Shareholders will be held
in Toronto on December 4, 2019 at 10:00
AM. For further details, please see the Combined Notice and
Management Information Circular posted on SEDAR and the Company's
website. John Conlon, a current
director of the Company, is not being re-nominated for election.
Being nominated to replace Mr. Conlon is John Stevens, a corporate director since
retiring in 2006 following 30 years in various executive roles at
JP Morgan Chase and its predecessors. Mr. Stevens spent the
majority of his career working in Latin
America, including significant experience in Nicaragua. We thank Mr. Conlon for his years
of service, and look forward to welcoming Mr. Stevens to the board
in December.
Qualified Person
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,
Akiba
Leisman
CEO
About Mako
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.
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 is based on certain
expectations and assumptions, including that the crusher
will be delivered to site at San Albino over the course of the next
six weeks; that the second-hand mill for the project will be chosen
by the end of 2019; that plant construction will occur by the
summer of 2020; that the additional batch of infill drilling
results, including hole SA19-299, will be positive; the Company's
goal of producing a maiden resource at Las Conchitas; the update to
the geological model and mine plan following completion of the
infill drill program at San Albino and delivery of laboratory
equipment from Mexico to
Nicaragua will be complete by
January such that mining can commence at San Albino in February;
that gold sales from La Trinidad
will be used to fund ongoing reclamation and severance costs; that
surplus equipment at La Trinidad
will be sold over the coming months; that the lawsuit filed against
the Company's insurance provider, Afirme, for over US$7 million in Mexico, and the suit filed against Afirme's
reinsurance providers in the United
States, will be successful; the plans of the Company to
liquidate the remaining Mexican assets in due course and its
expectation that there will be no further payments to settle any
outstanding liabilities related thereto; that the Company's
exploration programs will be successfully completed; 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. 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 the milestones and timelines
expected by the Company will not be achieved; that the suits filed
against Afime and its reinsurance providers will not be successful;
that there are additional liabilities related to the Mexican
assets; that a maiden resource at Las Conchitas is not produced;
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, the La Trinidad project, the Las Conchitas area
and in respect of its upcoming Annual and Special Meeting of
Shareholders in December, 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.
SOURCE Mako Mining Corp.
