TSX-V: MKO; OTCQX: MAKOF
VANCOUVER, BC, Feb. 1, 2021 /CNW/ - Mako Mining
Corp. (TSX-V: MKO) (OTCQX: MAKOF) ("Mako" or the
"Company") is pleased to announce the commencement of
processing of stockpiled material at the San Albino gold project
("San Albino") in northern Nicaragua, the initiation of a 50,000 meter
drilling program across the Company's district-scale land package
and the appointment of a new Chief Financial Officer ("CFO") and
Corporate Secretary.
Akiba Leisman, Chief Executive
Officer of Mako states that, "This is an exciting time for Mako as
we begin processing stockpiled material and launch the first
drilling program that includes exploration targets that have never
been drill tested. The key objectives in 2021 are to ramp up
operations at San Albino, complete resource delineation drilling at
Las Conchitas, which is expected to form the basis of a
maiden resource early next year, and to begin regional exploration
drilling with the goal of announcing a new discovery. We are
also excited to welcome Millie
Paredes to the Mako team as our new CFO and thank
Scott Kelly for his years of
service. Millie's financial experience, technical background
in geology and Latin American roots are a valuable combination as
Mako transitions to becoming a producer."
San Albino Operations
At San Albino, the crushing circuit, grinding circuit and
gravity circuit have all been operational over the last ten
days. Gravity concentrates are now being produced, and a
small amount of gold has been recovered. The carbon-in-leach
("CIL") tanks are full, cyanide and other consummables have been
delivered to site, and gold extraction from the CIL circuit is
expected to occur later this month to supplement the gold being
recovered from the gravity circuit. The Company expects to be
processing lower-grade historical dump material until the mills
have been properly bedded. The processing of high-grade
mineralized material is expected to commence in March. The
Company continues to target commercial production in early Q2.
Mako has a stockpile of 3,349 ounces of gold contained within
6,905 tonnes of diluted vein material (15.09 g/t Au) along with
1,589 ounces gold contained within 21,799 tonnes of historical dump
material (2.27 g/t Au) (see press release dated January 21, 2021), which will supplement feed
coming directly from the pit as mining operations ramp up to an
expected rate of 500 tonnes per day.
Exploration
The Company has initiated an approximately US$8.5 million exploration program for 2021,
which is expected to consist of nearly 50,000 meters of diamond
drilling and an additional 24,000 meters of blast hole drilling
(our production drill rig with a 15-meter downhole capacity) that
is anticipated to cost-effectively guide some of our shallower
targets along with our substantial trenching program.
The 50,000 meter program will be allocated towards resource
delineation and greenfields exploration at Las Conchitas (50%), San
Albino expansion drilling at satellite pits (35%) and for the first
time in the Company's history, a drill program for regional targets
outside of the San Albino and Las Conchitas areas (15%).
In order to accelerate the implementation of this exploration
program prior to reaching commercial production, the Company is
evaluating a working capital proposal from a third-party lender
that does not include any equity, warrants or commodity linked
derivatives.
CFO
The Company is pleased to announce the appointment of Ms.
Maria Milagros ("Millie") Paredes as
the new CFO and Corporate Secretary of the Company, as well as her
appointment as CFO of the Company's wholly-owned subsidiary, Mako
US Corp., effective today.
Ms. Paredes has combined experience as a finance professional
and a technical background in geology. Her extensive
financial experience was developed through positions in the mining,
technology and biotech industries. From 2010 to 2017, she was
the CFO and President of Bellhaven Copper and Gold Inc.
During this period Bellhaven announced its PEA, its partnership
with IAMGOLD Corp., its joint venture with AngloGold Ashanti Ltd.
and finally its acquisition by GoldMining Inc. Previous to
her career in finance, Ms. Paredes worked as a geologist in a
variety of roles across North and South
America including greenfields and brownfields exploration,
mine geology, geological modeling, reserve calculation and
development of feasibility studies. Previous employers during
this period include BHP Minerals, BHP Tintaya and Compania Minera
Antamina. Ms. Paredes received a BSc in Geological
Engineering from Universidad Nacional de Ingenieria Lima-Peru, a
MSc degree in Geology from Iowa State
University, and an MBA from Cornell
University (New
York). She is fluent in English and Spanish.
Sale of Mexican Operations
Lastly, Mako is pleased to report that it has executed a
definitive agreement with GR Silver Mining Ltd. ("GR Silver")
pursuant to which GR Silver will acquire 100% of the common shares
of Mako's wholly-owned subsidiary, Marlin Gold Mining Ltd.
("Marlin"), from Mako. Marlin is a private British Columbia company that owns, amongst
other assets, Oro Gold de Mexico,
S.A. de C.V. ("Oro Gold"), a Mexican company that owns the
La Trinidad mine facilities ("La
Trinidad"), which are currently being reclaimed. Oro Gold also controls 100% of nine concessions
totaling 104,094.5 ha located adjacent to GR Silver's existing
portfolio of properties. Mako will continue to be responsible
for all necessary reclamation expenses until it receives an
acknowledgement from SEMARNAT (the Mexican environmental authority)
that Oro Gold's closure plan is
complete.
In consideration for the sale of the common shares of Marlin to
GR Silver, Mako will receive C$50,000
in cash, a 1% net smelter return royalty ("NSR") on all concessions
currently owned by Oro Gold and the
reversal of approximately US$9.35
million in unpaid concession taxes, which are currently
accrued on the Company's balance sheet. GR Silver and/or
Oro Gold will be granted the right
to purchase the NSR at any time upon making a one-time payment of
US$2,000,000. Any net proceeds
received from the lawsuit Mako and Oro
Gold have filed against their insurers and reinsurers
related to damages from Hurricane Willa will be for the benefit of
Mako, and Mako will be responsible for the costs of this
litigation. The sale is expected to close on or before March 31, 2021.
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 key objectives
for 2021 to ramp up operations at San Albino, complete resource
delineation drilling at Las Conchitas, which is expected to form
the basis of a maiden resource early next year, and to begin
regional exploration drilling with the goal of announcing a new
discovery; the Company's expectation to be processing lower-grade
historical dump material once the mills have been properly bedded;
to be processing high-grade mineralized material is commencing in
March; the Company continuing to target commercial production for
early Q2; the Company's expected ramp up of mining operations at
San Albino to 500 tonnes per day; the Company's proposed
exploration program for 2021, which is expected to consist of
nearly 50,000 meters of diamond drilling and an additional 24,000
meters of blast hole drilling, which is expected to
cost-effectively guide some of the Company's shallower targets
along with its substantial trenching program; the
stated expected allocations for the 2021 exploration program; the
Company's consideration of a potential working capital
proposal from a third-party lender that does not include any
equity, warrants or commodity linked derivatives; the
expectation of proceeds to be received from the lawsuit Mako
and Oro Gold have filed against
their insurers and reinsurers related to damages from Hurricane
Willa; the expected closing date for the Company's sale transaction
with GR Silver; and the expectation that Mako will be able
to bring San Albino into production quickly and efficiently while
continuing exploration of prospective targets in Nicaragua. 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 operations at San
Albino, the processing of material and declaration of commercial
production, the completion of resource delineation at Las Conchitas
and exploration plans generally; changes in the financial results
or operations causing a change in stated allocations for the 2021
exploration program; the potential working capital funding not
being successful; the Company not being successful in obtaining any
proceeds from its current litigation; delays in the completion of
or failure to complete the transaction with GR Silver; and changes
in plans and parameters related to San Albino and the Company's
exploration prospectus in Nicaragua 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
processing of stockpiled material at San Albino, its proposed
drilling program, the appointment of its new Chief Financial
Officer and its execution of a definitive agreement to sell its
Mexican operations, 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.