Mako Mining Corp. [MKO-TSXV; MAKOF-OTCQX] has provided third quarter 2022 (Q3 2022) production results from its 100%-owned San Albino gold mine in northern Nicaragua, which is the fifth full quarter of production results since declaring commercial production on July 1, 2021. Financial results for Q3 2022, including detailed reporting of the company’s operating costs, are expected to be released in November.
Q3 2022 production highlights: 52,084 tonnes mined containing 10,531 ounces of gold at a blended grade of 6.28 g/t gold; 21,655 tonnes mined containing 7,962 oz gold from diluted vein material at 11.44 g/t gold; 30,429 tonnes mined containing 2,569 oz gold from historical dump and other mineralized material above cutoff grade at 2.63 g/t gold. There was a 7.0:1 strip ratio for Phase 1 and a 22.9:1 strip ratio overall which includes accelerated waste development of the West and the Central Pit (Arras Zone)
A total of 44,452 tonnes were milled containing 11,172 oz gold at a blended grade of 7.82 g/t gold; 56% and 44% from diluted vein and historical dump and other, respectively; 512 tonnes per day milled at 94% availability. There were 77.0% gold recoveries for all of Q3 2022 and 86.4% gold recoveries after improvements made since August 10, 2022.
There is 144,624 tonnes in stockpile containing 12,293 oz gold at a blended grade of 2.64 g/t gold.
There were 8,598 oz gold recovered and 8,328 oz gold sold at an average realized price of US$1,724/oz (final gold shipment for Q3 2022 was sold on the first business day of Q4 2022)
Akiba Leisman, CEO, stated, “Q3 2022 was a tale of two halves. Beginning in March 2022, the company experienced metallurgical challenges with the transition from oxide to fresh material causing a diminution of recoveries in Q2 (74.5%) and the first six weeks of Q3.
“Optimization of the plant along with new highly detailed grade and lithological controls in our mining procedures led us to correct these issues midway through the quarter, such that recoveries are now at or above the 86% recoveries announced in connection with our metallurgical testing from 2019.
“The mine is performing well, where the diluted vein material continues to positively reconcile to the resource model, and mill throughput was running just under nameplate capacity of 500 tonnes per day, including all availability factors. The mill averaged 512 tonnes per day for the quarter at 94% availability, 4% below nameplate capacity, as the Company observed that increases in tank residence time had a beneficial effect on recoveries. Post quarter end, with further optimizations, the plant is now running above nameplate capacity, including all availability factors. With all of these changes, the company expects that the plant will recover substantially more gold in Q4 than the 8,598 ounces recovered in Q3. Operating cash flow from the mine remains robust, with exploration expenditures increasing to US$1.3 million per month, an aggregate of US$13.2 million of principal being repaid under the company’s loan facilities with Wexford and Sailfish Royalty Corp. since the beginning of Q3 2021, and over 2 million common shares repurchased through our normal course issuer bid.”
Mako 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.