Mako Mining Announces Operational Update ON Recoveries
LEGAL*57088264.1
595 Burrard Street, Suite 2833
Vancouver, BC V7X 1K8
Tel: (604) 646-1580
www.makominingcorp.com
TSX-V: MKO | OTCQX: MAKOF
Suite 700 - 838 West Hastings St.
Vancouver, BC - V6C 0A6
IR: (647) 203-8793
www.makominingcorp.com
TSX-V: MKO | OTCQX: MAKOF
October 3rd, 2022
TSX-V: MKO; OTCQX: MAKOF
MAKO MINING ANNOUNCES OPERATIONAL UPDATE ON RECOVERIES
Mako Mining Corp. (TSX-V: MKO; OTCQX: MAKOF) (“Mako” or the “Company”) is pleased to
provide the following operational and corporate updates:
On July 20, 2022 the Company announced Q2 2022 production results showing recoveries of
74.5%, below the 86 % recoveries announced in connection with its metallurgical testing from
2019 (see press release dated December 13, 2019). Beginning August 10, 2022 several mill
improvements were implemented to improve metal recov ery. Since this date, recoveries have
been averaging 85.9%. The operational data for the quarter to date and for the portion of the
quarter after improvements were implemented are set out in the table below:
Table 1: Recoveries
*Preliminary results based on information obtained through September 30th, 2022
The improvements implemented are listed below:
✓ Through selective mining procedures and blending protocols, the amount of preg-robbing
material going through the mill was significantly reduced. The hanging wall and foot wall
appears to have a much higher preg -robbing potential than the vein and weathered
lithologies and our selective mining procedures were able to separate this m aterial
effectively
✓ The mill throughput was reduced from 544 tpd in July to 449 tpd in September in order to
increase the leach retention time
✓ The lower mill throughput also resulted in a grind size improvement from 77.2% passing
75 microns to 79.1% passing 75 microns
✓ The measured free cyanide in the grinding circuit fell from 14.1 ppm to 2.1 ppm through
improved operational procedures . The lower cyanide levels in the grinding circuit
contributed to reduced losses through preg-robbing
✓ The inventory of carbon in the CIL circuit was increased from 25 to 34 tonnes
Mill Feed
(tpd)
Head Grade
(g/t)
Au Recovery
(%)
3rd Qtr to date 483 7.66 76.50%
After improvements 443 8.06 85.90%
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1 Refer to Page 2: Non-GAAP Measures
Further improvements anticipated in the coming months include:
✓ Resuming operation of the pre-leach thickener which will allow for a higher slurry density
in the CIL, allowing for an increased throughput rate without sacrificing leach retention
time
✓ Replacement of worn-out carbon retention screens to improve carbon loading efficiencies
Akiba Leisman, CEO of Mako states that “the transition to carbonaceous fresh material from the
oxide zone that we were mining in 2021 was a significant challenge for us to overcome.
Nonetheless, our team’s quick and diligent response through a series of testing and
improvements allowed us to get back to 85.9% recoveries since August 10 th. We expect our
recoveries to remain around this level in the future. It is worth mentioning that e ven with the
diminution in recoveries experienced from March to early August 2022, San Albino generated
US$7.5 million in Mine Operating Cash Flow1 (see press release dated August 16th, 2022) for Q2
2022, which allowed us to invest US$2.7 million in growth exploration and repay US$1.7 million
in principal for the quarter to Wexford and Sailfish , albeit this was a lower principal repayment
rate than would have been the case had recoveries been as expected.”
Non-GAAP Measures
The Company has included reference to Q2 2022 Mine Operating Cash Flow which is a non -
GAAP financial measure. This non -GAAP measure is intended to provide additional information
and should not be considered in isolation or as a substitute for measures of performance prepared
in accordance with IFRS. In the gold mining industry, this is a commonly used performance
measure, but does not have any standardized meaning prescribed under IFRS and therefore may
not be comparable to other issuers. The Company believes that, in addition to conventional
measures prepared in accordance with IFRS, certain investors use this information to evaluate
the Company’s underlying performance of its core operations and its ability to generate cash flow.
Mine Operating Cash Flow represents operating cash flow, excluding Nicaraguan taxes and
royalties, changes in non-cash working capital and exploration expenses.
Mine OCF Calculation
Cash from Operating Activities 5.4
Substract
Change in Non-cash WC 1.6
Net cash from Operating Activities 3.8
Add back
Exploration Expense 2.7
Nicaraguan Taxes & Royalties 1.0
Mine Operating Cash Flow (Mine OCF) 7.5
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1 Refer to Page 2: Non-GAAP Measures
Qualified Person
John Rust, a metallurgical engineer, and qualified person (as defined under NI 43-101) has read
and approved the technical information contained in this press release . Mr. Rust is a senior
metallurgist and a consultant to the Company.
On behalf of the Board,
Akiba Leisman
CEO
About Mako
Mako Mining Corp. is a publicly listed gold mining, development and exploration company. The
Company 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. Mako’s primary objective is to
operate San Albino profitably and fund exploration of prospective targets on its district-scale land
package.
For further information: Mako Mining Corp., Akiba Leisman, Chief Executive Officer, Tele phone:
203-862-7059, E -mail: [email protected] or visit our website at
www.makominingcorp.com and SEDAR www.sedar.com.
Forward-Looking Information
Statements contained herein that are not historical fact are considered “forward-looking information” within the meaning
of applicable securities laws. Forward-looking information is based on management’s current expectations, beliefs and
assumptions, and includes, without limitation: expected results from mill improvements implemented to-date and those
to be further implemented; and that the Company will meet its object of operating San Albino profitably while continuing
to fund exploration of prospective targets. 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 refl ected in the forward-looking
information, including, without limitation, that the mill improvements being implemented will not have the anticipated
impacts; risks and uncertainties relating to political risks involving the Company’s exploration and develop ment 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 u ncertainties disclosed in the Company’s public filings at www.sedar.com. Forward -looking information
contained herein is based on 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 in
connection with its business and operations, share and loan capital, 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.