Mako Mining posts San Albino Q1 production results, Nicaragua
Mako Mining Corp. [MKO-TSXV; MAKOF-OTCQX] reported first quarter 2023 production results from its San Albino gold mine in northern Nicaragua, which is the seventh full quarter of production results since declaring commercial production on July 1, 2021. Financial results for Q1 2023, including detailed reporting of our operating costs, are expected to be released by the end of this month.
Q1 2023 production highlights: 47,238 tonnes mined containing 8,072 ounces of gold at a blended grade of 5.32 g/t and 11,001 ounces of silver grading 7.24 g/t silver; 18,029 tonnes mined containing 5,611 oz Au at 9.68 g/t Au and 6,219 oz Ag at 10.73 g/t Ag from diluted vein material; 29,210 tonnes mined containing 2,461 oz Au at 2.62 g/t Au and 4,782 oz Ag at 5.09 g/t Ag from historical dump and other mineralized material above cutoff grade (historical dump + other); 36.3:1 strip ratio overall which includes accelerated waste development of the Phase 3 in West Pit. 49,675 tonnes milled containing 10,119 oz Au at a blended grade of 6.34 g/t Au and 7,869 oz Ag at 4.93 g/t Ag; 38% and 62% from diluted vein and historical dump and other, respectively; 587 tonnes per day milled at 94% availability; Recoveries of 82.5% for gold in Q1 2023; 144,315 tonnes in stockpile containing 8,563 oz Au at a blended grade of 1.85 g/t Au; 8,374 oz AuEq recovered and 8,820 oz AuEq sold during the quarter.
Akiba Leisman, CEO, stated that “in Q1 2023 the plant began consistently operating at 600 tonnes per day. The company achieved this milestone of operating at 20% above nameplate capacity with no additional capital requirements. Q1 production was moderately lower than Q4 2022 as the Company transitioned from Phase 2 to Phase 3 Mining of the West Pit at San Albino. Mining the high-grade Phase 3 West Pit commenced at the end of April, and production will be further supplemented as Mako begins mining Las Conchitas later this month. A maiden resource at Las Conchitas is nearing completion and is now scheduled to be publicly released in early Q3.”
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, 2023, the plant has been averaging 587 tpd at 94% availability, including averaging 607 tpd net of availability in March.
In Q1 2023 the plant processed 38% diluted vein material and 62% historical dump + other material to achieve an average blended grade of 6.34 g/t Au. Gold recovery for the quarter was 82.5%. Due to the transition between Phase 2 and Phase 3 mining at the West Pit of San Albino, there was a relatively lower percentage of diluted vein material available compared to previous months. Now that high-grade diluted vein material from Phase 3 of the West Pit has commenced along with material coming from Las Conchitas later this month, the relative percentage of diluted vein material will revert towards historical norms of approximately 50%. This will lead to higher gold production levels beginning later this quarter.
The gold recovery in Q1 2023 was very close to the gold recovery during Q4 2022 despite the mill processing rate being 24 tpd higher and the gold head grade being 1.2 g/t lower than the previous quarter. 8,820 gold equivalent ounces (8,721 gold oz) were sold in Q1 2023.
The company granted 540,000 incentive stock options to certain directors, officers. Employees and/or consultants. The options will be exercisable, in whole or in part, at a price of $2.13 for five years with vesting in 1/4 equal installments over a period of three years, with the first 25% vesting on the date of grant.
The company also announced that as part of its incentive plans, it has granted 38,829 Restricted Stock Units (RSUs) to officers of the company.
Mako Mining 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.