Drilling at Las Conchitas Intersects Near Surface, High-grade Gold Mineralization of 376.49 g/t Gold and 103.0 g/t Silver Over 1.0 Meter
Drilling at Las Conchitas Intersects Near
Surface, High-grade Gold Mineralization of
376.49 g/t Gold and 103.0 g/t Silver Over 1.0
Meter
/THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN
THE UNITED
STATES OF AMERICA
TO
UNITED STATES
NEWSWIRE SERVICES OR
UNITED STATES
PERSONS./
TSX-V: MKO
VANCOUVER
,
May 6, 2019
/CNW/ -
Mako Mining Corp.
(TSX-V:
MKO
) ("
Mako
" or the
"
Company
") is pleased to announce positive drill results from the Las Conchitas area of its wholly-
owned San Albino-Murra property located in
Nueva Segovia
,
Nicaragua
.
The Company has completed 14 shallow drill holes within the Mango Zone, totaling 827.30 meters
("
m
"). The results from the first five drill holes of the program are presented in the first table below.
Results from the remaining nine drill holes are pending. The Mango Zone is part of the Las Conchitas
area and is located approximately 2.5 kilometers south of the fully-permitted San Albino gold project.
The objective of the drilling program at the Mango Zone was to confirm the strike and dip continuity
of a gold mineralized low angle quartz vein encountered in the 2011 drilling campaign (results from
2011 are shown in the second table below).
The results reported in this press release confirm a near surface, high-grade zone with a dip
continuity of
400 m
and a strike continuity of
150 m
. The zone is open along strike and down
dip. Importantly, drill hole LC19-70 intersected the highest gold grade drilled to date of 376.49 g/t Au
over
1 m
. This interval had visible gold and was approximately
70 m
from drill hole LC11-01, which
intersected 69.96 g/t Au over
3 m
. The mineralized intercepts at LC19-70 and LC11-01 were less
than
40 m
from surface.
Mako is also pleased to provide an update on construction financing for the San Albino
project. Wexford Capital LP, through funds managed by Wexford Capital LP (collectively,
"
Wexford
"), which is the controlling shareholder of the Company, has indicated its agreement to
backstop up to
US$20 million
under an exempt rights offering. The terms and conditions of the
proposed exempt rights offering by the Company are expected to be provided to shareholders later
this month pending approval from the TSX Venture Exchange.
Akiba Leisman
, Interim CEO states, "the discovery of near surface, high-grade mineralization at the
Mango Zone in 2011 was an important event for Mako and its predecessors, and the results from
the additional drill holes to-date continue to be positive. To follow up on exploration targets more
aggressively, we have requisitioned an additional drill rig to expand our exploration and infill drilling
programs at San Albino, Las Conchitas and the surrounding area. Furthermore, the proposed rights
offering for up to
US$20 million
to commence construction at San Albino is a watershed moment for
Mako. The rights offering should account for the majority of the currently expected upfront capex for
the San Albino project. Site clearing activities have commenced, and the project is on track to
achieve first gold pour by the late summer of 2020."
The Company advises that it is not basing its production decision on a feasibility study of mineral
reserves demonstrating economic and technical viability, and, as a result, there may be an increased
uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery,
including increased risks associated with developing a commercially minable deposit. Accordingly,
there are multiple technical and economic risks of failure, which are associated with this production
decision. These risks, among others, include areas that are analyzed in more detail in a feasibility
study, such as applying economic analysis to resources and reserves, more detailed metallurgy and
a number of specialized studies in areas such as mining and recovery methods, market analysis, and
environmental and community impacts. The Company's preliminary economic assessment ("
PEA
"),
dated
April 29, 2015
, is available under the Company's profile on SEDAR at
www.sedar.com
.
2019 Diamond Drill Results in the Mango Zone
Drill Hole
From
(m)
To
(m)
Width
(m)*
Au
(g/t)
Ag
(g/t)
Interval Averages
LC19-67
33.10
34.20
1.10
12.18
7.6
12.18 g/t gold and 7.6 g/t silver over 1.1 m
LC19-67
47.90
49.00
1.10
5.74
10.4
4.07g/t gold and 10.0 g/t silver over 2.0 m
LC19-67
49.00
49.90
0.90
2.03
9.5
LC19-69
33.25
34.25
1.00
3.08
12.0
9.55 g/t gold and 12.1 g/t silver over 2.0 m
LC19-69
34.25
35.25
1.00
16.01
12.2
LC19-70
36.00
37.00
1.00
376.49
103.0
376.49 g/t gold and 103.0 g/t silver over 1.0 m
LC19-71
39.00
40.00
1.00
2.29
9.1
2.52 g/t gold and 9.2 g/t silver over 2.0 m
LC19-71
40.00
41.00
1.00
2.75
9.2
Previously Reported Diamond Drill Results in the Mango Zone
(see Golden Reign Resources Ltd. news release dated
February 22, 2012
)
Drill Hole
From
(m)
To
(m)
Width
(m)*
Au
(g/t)
Ag
(g/t)
LC11-01
77.5
80.5
3
69.96
61.7
LC11-02
78.8
79.5
1.2
29.8
31.7
LC11-03
85.0
86.0
1
36.53
60.6
LC11-04
167.5
169.0
1.5
9.44
17.3
LC11-05
217.1
220.5
3.4
12.39
4.6
The mineralized intervals shown in the tables utilize a 1.0 g/t gold cut-off grade with not more than
1.0 meter of internal dilution.*Lengths are reported as core lengths. True widths vary depending on
drill hole dip, the veins are shallow dipping and typical true widths are 85-100% of the downhole
width.
Sampling, Assaying, QA/QC and Data Verification
Drill core was continuously sampled from inception to termination of the drill hole. Sample intervals
were typically one meter. Drill core diameter was HQ (6.35 centimeters). Geologic and geotechnical
data was captured into a digital database, core was photographed, then one-half split of the core
was collected for analysis and one-half was retained in the core library. Samples were kept in a
secured logging and storage facility until such time that they were delivered to the
Managua
facilities
of Bureau Veritas and pulps were sent to the Bureau Veritas laboratory in
Vancouver
for analysis.
Gold was analyzed by standard fire assay fusion, 30 gram aliquot, AAS finish. Due to the presence
of coarse gold, the Company has used 500-gram metallic screened gold assays for analyzing
samples that yielded a fire assay result greater than 1 g/t, and samples immediately above and
below drilled veins. This method, which analyzes a larger sample, can be more precise in high-grade
vein systems containing coarse gold. All reported drill results in this press release used the metallic
screening method. The Company follows industry standards in its QA&QC procedures. Control
samples consisting of duplicates, standards, and blanks were inserted into the sample stream at a
ration of 1 control sample per every 10 samples. Analytical results of control samples confirmed
reliability of the assay data.
Qualified Person
John M. Kowalchuk
, P.Geo, a geologist and qualified person (as defined under NI 43-101) has read
and approved the technical information contained in this news release. Mr. Kowalchuk is a senior
geologist and a consultant to the Company.
On behalf of the Board,
"Akiba Leisman"
Interim CEO
About Mako
Mako Mining Corp. is a publicly listed gold mining, development and exploration company. It
operates the producing
La Trinidad
open-pit, heap leach gold mine in Sinaloa State,
Mexico
and is
developing its San Albino gold project in
Nuevo Segovia
,
Nicaragua
. Mako's primary objective is to
bring San Albino into production quickly and efficiently, while continuing exploration of prospective
targets in both
Mexico
and
Nicaragua
.
Currently, Mako is exploring for gold and silver mineralization on more than 60,200 hectares (602
km2) in Sinaloa State,
Mexico
and on 13,771 hectares (138 km2) at the San Albino-Murra and El
Jicaro properties, both in
Nueva Segovia
,
Nicaragua
. The Corona de Oro Gold Belt, approximately 3
kilometers wide by 23 kilometers long, contains hundreds of historical mines and workings and
spans the entirety of the Company's
Nicaragua
land package.
Forward-Looking Statements:
Some of the statements contained herein may be considered
"forward-looking information" within the meaning of applicable securities laws. Forward-looking
information is based on certain expectations and assumptions, including that the results pending
from the remaining nine drill holes at the Mango zone will support strike and dip continuity of gold
mineralization; that the Company's exploration programs will be successfully completed; that
although the Company's production decision at its San Albino project is not based on a technical
study supporting mineral reserves, and therefore not based on demonstrated economic viability,
management currently believes the project is on track to achieve its first gold pour by the late
summary of 2020; that the Company will be successful in its proposed financing plans necessary
for the construction at the San Albino project, including by way of a proposed back-stopped,
exempt rights offering; and that upfront capital expenditures required for the construction of San
Albino of approximately
US$28 million
will be sufficient. 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, the
risks that additional satisfactory exploration results at the Mango zone will not be obtained; that the
PEA is preliminary in nature and there is no certainty that the PEA will be realized; the risk of
economic and/or technical failure at the San Albino project associated with basing a production
decision on the PEA without demonstrated economic and technical viability; that exploration results
will not translate into the discovery of an economically viable deposit; risks and uncertainties
relating to political risks involving the Company's exploration and development of mineral
properties interests; the inherent uncertainty of cost estimates and the potential for unexpected
costs and expense; commodity price fluctuations, the inability or failure to obtain adequate
financing on a timely basis and other risks and uncertainties. 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 the Company's plans and
expectations at its San Albino project and the Las Conchitas area, and may not be appropriate for
other purposes.
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.
Las Conchitas 2019 Drilling Program Mango Zone (CNW Group/Mako Mining Corp.)
Schematic Cross Section Mango Zone (CNW Group/Mako Mining Corp.)
SOURCE
Mako Mining Corp.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/May2019/06/c1022.html
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For further information:
Mako Mining Corp., Akiba Leisman, Interim Chief Executive Officer,
Telephone: 203-862-7059, E-mail: [email protected] or visit our website at
www.makominingcorp.com and SEDAR www.sedar.com.
CO: Mako Mining Corp.
CNW 19:25e 06-MAY-19