Mako on track for record gold sales in Nicaragua
Mako Mining Corp. [TSXV-MKO] said Friday it is on track for record gold sales in the fourth quarter of 2023, with a significantly improved balance sheet.
Mako is the product of a November, 2018, merger involving Marlin Gold Mining Ltd. and Golden Reign Resources. It’s San Albino mine in Nueva-Segovia Nicaragua ranks as one of the highest-grade open pit gold mines globally.
The San Albino mine is fully permitted and has been in commercial production since July 1, 2021.
Since the beginning of the fourth quarter of 2023, Mako said it has sold in excess of 10,000 ounces of gold, including 7,964 ounces of gold recovered in October and November and the 2,234 ounces of gold delivered, but not sold in the third quarter of 2023.
Mill head grades have been exceptionally high during the quarter, averaging 8.41 g/t gold at 86.6% recoveries, the company said in a press release Friday. “December is continuing this trend which will lead to a record quarter in both gold ounces recovered and gold ounces sold,’’ the company said. “A comprehensive quarterly production update will be released in January, 2024.’’
Meanwhile, since the beginning of the fourth quarter of 2023, the company has repaid US$1.64 million to Sailfish Royalty Corp., and US$3.0 million to Wexford Capital LP, while reducing its accounts payable by approximately US$4.0 million and increasing its cash balance by over US$1.0 million, while funding an aggressive exploration program.
The company expects to fully repay the remaining US$1.86 million of principal owned to Wexford by year end.
“The amount of cash flow coming from the mine in just the first two months of the quarter is extraordinary,’’ said Mako CEO Akiba Leisman. “The company is on track for record gold sales and gold ounces recovered, which has significantly strengthened the balance sheet,’’ he said. “This is setting the company up to invest in a very large internally funded exploration program for 2024 while returning a significant amount of capital to shareholders.’’
Mako Mining shares were unchanged Friday at $2.47. The shares trade in a 52-week range of $2.80 and $1.10.
Friday’s production forecast comes on the heels of an updated mineral resource estimate for San Albino.
The open pit and underground resource estimate includes a measured and indicated resource of 670,100 tonnes at a diluted grade of 11.61 g/t gold or 250,200 gold ounces. On top of that is an inferred resource of 383,300 tonnes at a diluted grade of 10.54 g/t gold for 129,000 gold ounces.
The company said these mineral resources are constrained within two major and three smaller open pit shells at the Las Conchitas deposit, and four pit shells at the San Albino mine, two of which are currently in operation. The underground mineral resources are constrained by shells defined by stope optimizations.