Mako Mining Corp. (TSX-V: MKO; OTCQB: MAKOF) (“Mako” or the “Company”) reported positive drill results from the Bayacun Zone within the Las Conchitas area of its wholly-owned San Albino-Murra property located in Nueva Segovia, Nicaragua. The Las Conchitas area is located approximately 2.5 kilometers south of the fully permitted San Albino gold project currently under construction.
The goal of the 2020 drill program at Las Conchitas is to focus on the most promising zones of near surface, shallow dipping, high-grade gold mineralization to delineate a maiden resource estimate. Since 2019, the Company has completed 65 shallow diamond drill holes totaling 4,351.70 meters (“m”) within the Bayacun Zone, which is among the most promising zones within the Las Conchitas area. A total of 15,052.75 m within 197 holes have been drilled at Las Conchitas since the start of the 2019-20 drilling campaign.
This press release adds 2 more holes with assay results from the Bayacun Zone (see attached map) to the 23 holes released earlier this month (see press release dated June 15, 2020) and the 15 holes previously released since the discovery of the Bayacun Zone in September 2019 (see press preleases dated September 10, 2019, March 11, 2020 and March 25, 2020). A breakdown of the 40 holes reported to date are as follows:
- 22 holes with composite interval averages greater than 15 g/t Au, including the 2 in this press release
- 9 holes with composite interval averages ranging from 5 g/t to 15 g/t Au
- 6 holes with composite interval averages ranging from 1 g/t Au to 5 g/t Au
- 3 holes with values below cut-off grade (less than 1 g/t Au), with 1 intersecting a dyke where the vein was expected and the other 2 disturbed by faults
Importantly, 25 of the 40 holes reported to date at the Bayacun Zone encountered at least 1 assay greater than 15 g/t Au.
Holes LC20-246 and LC20-247 were designed to further test the strike and dip extension and to improve the understanding of structural controls of the Bayacun Zone.
Drill hole LC20-246 intersected a mineralized interval of 40.52 g/t Au and 67.3 g/t Ag over 4.30 m (2.10 m estimated true width), including a sample with the highest gold values encountered at the Bayacun Zone to date of 137.10 g/t Au over 1.0 m approximately 20 m from the surface. As a reminder, the sample with the highest gold value encountered within the Las Conchitas area was LC19-70, which intersected 376.49 g/t Au over 1 m at the Mango Zone (see press release dated May 6, 2019).
LC20-246 was designed to confirm continuity and grades of the mineralization in drill hole LC20-220, which intersected 93.3 g/t Au and 61.4 g/t Ag over 0.9 m (see press release dated June 15, 2020) and extended the zone an additional 22 m by strike and 4.5 m updip (see attached long section). LC20-246 has also extended the mineralization encountered in hole LC20-229, which intersected 21.70 g/t Au and 34.0 g/t Ag over 1.10 m, by 33 m updip (see press release dated June 15, 2020).
Additionally, LC20-246 intersected a separate mineralized interval of 6.54 g/t Au and 12.9 g/t Ag over 2.80 m (1.50 m estimated true width) approximately 13 m from the surface.
Drill hole LC20-247 intersected 16.90 g/t Au and 22.9 g/t Ag over 4.50 m (4.30 m estimated true width) approximately 26.5 m from surface. The intercept in this hole is the most northeasterly reported drill hole, extending the strike length of the Bayacun Zone for an additional 20.7 m from hole LC20-229 (see press release dated June 15, 2020).
Moreover, LC20-247 is located 110 m downdip from the surface exposure of the Bayacun Zone encountered in exploration pit LC20-EP142 reported earlier this month (see attached long section and press release dated June 15, 2020). The results of this hole, combined with the surface exposures in the exploration pit, indicate an additional 110 m of dip continuity over an additional 20.7 m of strike.
The Bayacun Zone is still open along strike and downdip and there are 25 additional drill holes awaiting assay results.
The Company is also pleased to provide a brief update on the development schedule at the San Albino gold project. In our last corporate update, due to delays associated with the COVID-19 global pandemic, the Company pushed back the expected first gold pour from late summer to Q4 of 2020, a 2 to 4-month delay from the original project schedule (see press release dated March 23, 2020). Importantly, the forecast from March had a significant amount of uncertainty in how our operations and supply chain would be impacted as the pandemic evolved. Since that time, travel to and from jurisdictions where Mako has key personnel (Nicaragua, Mexico, Arizona and New York) has been adversely impacted by the ongoing pandemic. We are happy to report however, that due to an increased presence onsite by local employees and contractors, there is only a few weeks delay to the timeline provided in March.
Specifically, construction of the San Albino gold project is more than 70% complete, with focus transitioning to completing the tailings storage facility and associated water treatment plant. The first gold pour is now expected in January 2021.
With regards to commercial production, the 500 tonne per day CIL plant will require a minimum of 20 days to properly bed the tanks with low-grade material. The Company is conservatively budgeting a 3-month startup period of processing low to mid-grade material before moving on to the high-grade material that is presently being stockpiled. If the operating team is comfortable that the recoveries from the plant meet the design specifications at any time within the 3-month startup period, the decision to begin processing high-grade material earlier can be made. Commercial production is expected to commence in Q2 of 2021 and potentially sooner.
Akiba Leisman, Chief Executive Officer of Mako states, “these are very exciting times for Mako. Mine construction is nearing completion, with delays due to the COVID-19 global pandemic kept to a minimum. Additionally, exploration results from the Bayacun Zone at the Las Conchitas area are surpassing our expectations. This bodes well as we aim to develop Las Conchitas into our second area of mining within our nearly 200 square kilometer mining district.”
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. *Widths are reported as drill core lengths. ** True width is estimated from interpreted sections.
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.