TSX-V: MKO; OTCQX: MAKOF
VANCOUVER, BC, May 20, 2021 /CNW/ - Mako Mining
Corp. (TSXV: 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).
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
Chief
Executive Officer
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 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.
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.