Mako Mining Corp. - Corporate Update
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November 6, 2019
PRESS RELEASE - #19-18
TSX-V: MKO
MAKO MINING CORP. - CORPORATE UPDATE
Mako Mining Corp. (TSX-V: MKO) (“Mako” or the “Company”) is pleased to provide a n update on the ongoing
project development and exploration programs at its fully-permitted San Albino project in Nueva Segovia, Nicaragua
(“San Albino”), the status of the Company’s Mexican operations and important information for the upcoming Annual
and Special Meeting of Shareholders to be held on December 4, 2019.
Nicaragua Update
Development work at San Albino is proceeding on schedule. The crusher has been purchased and is expected to be
delivered to site over the course of the next six weeks. Importantly, the crusher is capable of handling over 1,000tpd,
which allows for an increase in throughput beyond the 500tpd permit granted in September 2017. Earthworks for the
mill platform are now complete. Numerous second-hand mills have been identified with plans to select the best one
for the project by the end of 2019. Plant construction is still on track for completion by the summer of 2020.
Although only 7,000 m of infill gr ade-control drilling were pla nned at San Albino, the positive results encountered
to date have extended the program to over 9,600 m and 224 diamond drill holes. Specifically, the decision to dedicate
one drill rig to testing the strike and down dip extensions of the near surface high-grade Porcelana-style mineralization
has yielded some of the highest grade x thickness intercepts in the Company’s history (see press releases dated
September 4, 2019, September 26, 2019 and October 17, 2019). I n an attempt to aggressively test the down dip
extension of the Porcelana-style mineralization, hole SA19-299 was drilled well outside the ultimate pit limit
(approximately 70 m down dip) as defined in the Company’s Preli minary Economic Assessment for the San Albino
Gold Deposit dated April 29, 201 5 (the “PEA”) and available on the Mako’s website and SEDAR profile at
www.sedar.com. The Company is pleased to report that hole SA19-299 has intersected a relatively thick zone (greater
than 4 m) of sulfide mineralization that has previously been associated with high gold grades.
An additional batch of infill drilling results will be ready fo r dissemination shortly, with remaining assay results,
including hole SA19-299, to be released as they are received.
Once infill drilling at San Albino is complete, the Company plans to move certain drill rigs to the Las Conchitas area
(approximately three kilometers to the south) to supplement exp loration work currently ongoing with a single rig.
The mobilization of additional rigs to this area is part of the Company’s goal of producing a maiden resource at Las
Conchitas. Pending assay results from ongoing drilling at Las Conchitas are expected back from the lab soon and
ready for dissemination later this month.
The Company is also pleased to announce that only two major mil estones remain in order to commence mining at
San Albino; an update to the geol ogical model and mine plan fol lowing completion of the infill drill program, and
the delivery of laboratory equipment from Mexico to Nicaragua. The Company expects both of these items to be
complete by January such that mining can commence at San Albino in February.
Mexico Update
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At the La Trinidad mine in Sinaloa, Mexico, gold production is nearing conclusion, with gold sales being used to
fund ongoing reclamation and severance costs. Nearly all of the mining and process plant equipment has been moved
to the United States with the exception of the laboratory equip ment, which will be moved to Nicaragua imminently.
Surplus equipment is expected to be sold over the coming months.
As discussed in a previous corporate update (see press release dated August 9, 2019), the Company has been
unsuccessful in receiving any insurance proceeds from damages s ustained at the La Trinidad mine from Hurricane
Willa in October 2018. Mako, through its subsidiaries Oro Gold de Mexico, S.A. de C.V. (“OGM”) and Marlin Gold
Mining, Ltd., has filed a lawsuit against the Company’s insurance provider, Seguros Afirme, S.A. de C.V. (“Afirme”),
for over US$7 million in Mexico, and Mako with these subsidiari es also filed suit against Afirme’s reinsurance
providers in the United States. The La Trinidad mine was sever ely damaged due to Hurricane Willa and the denial
of payment by Afirme is viewed as unacceptable. There are curr ently no insurance receivables booked on Mako’s
balance sheet, so any payment(s) received above the costs of the suit will be treated as a gain.
The Company is pleased to report that its Mexican subsidiary OG M has reached a settlement agreement with the
primary mining contractor at the La Trinidad mine. The mining contractor was owed approximately US$11.3 million
by OGM. Despite being ring-fen ced from the rest of Mako’s corp orate structure, the Company chose to settle with
the contractor by making a US$4 million upfront payment and agr eeing to make two additional US$1 million
payments 12 months and 24 months from signing of the settlement agreement. As this liability was being accounted
for at approximately US$11.3 million, a substantial accounting gain is expected in the next quarterly report.
Nearly all of the remaining payables held at OGM are concession taxes owed to the Mexican government, and are
completely ring-fenced from Mako and its other subsidiaries. The Company plans to liquidate the remaining Mexican
assets in due course and does not anticipate any further payments to settle any outstanding liabilities.
Annual and Special Meeting of Shareholders
Mako’s Annual and Special Meeting of Shareholders will be held in Toronto on December 4, 2019 at 10:00 AM.
For further details, please see the Combined Notice and Managem ent Information Circular posted on SEDAR and
the Company’s website. John Conlon, a current director of the Company, is not being re-nominated for election.
Being nominated to replace Mr. Conlon is John Stevens, a corporate director since retiring in 2006 following 30 years
in various executive roles at J P Morgan Chase and its predecess ors. Mr. Stevens spent the majority of his career
working in Latin America, incl uding significant experience in N icaragua. We thank Mr. Conlon for his years of
service, and look forward to welcoming Mr. Stevens to the board in December.
Qualified Person
John M. Kowalchuk, P.Geo, a ge ologist and qualified person (as defined under NI 43-101) has read and approved
the technical information contained in this press release. Mr. Kowalchuk is a senior geologist 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 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.
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For further information: Mako Mining Corp., Akiba Leisman, Chie f Executive Officer, Telephone: 203-862-7059,
E-mail: [email protected] o r v i s i t o u r w e b s i t e a t www.makominingcorp.com a n d S E D A R
www.sedar.com.
Forward-Looking Information: Some of the statements contained herein may be considered “forward-looking information”
within the meaning of applicable securities laws. Forward-lo oking information is based on certain expectations and
assumptions, including that the cr usher will be delivered to site at San Albino o ver the course of the n ext six weeks; that the
second-hand mill for the project will be chosen by the end of 201 9; that plant construction will occur by the summer of 2020;
that the additional batch of infill drilling results, including hole SA19-299, will be positive; the Company’s goal of producing a
maiden resource at Las Conchitas; the update to the geological model and mine plan following completion of the infill drill
program at San Albino and delivery of laboratory equipment from Mexico to Nicaragua will be complete by January such that
mining can commence at San Albino in February; that gold sales from La Trinidad will be used to fund ongoing reclamation
and severance costs; that surplus equipment at La Trinidad will be sold over the coming months; that the lawsuit filed against
the Company’s insurance provider, Afirme , for over US$7 million in Mexico, and the suit filed against Afirme’s reinsurance
providers in the United States, will be succ essful; the plans of the Company to liqui date the remaining Mexican assets in due
course and its expectation that there will be no further payments to settle any outstanding liabilities related thereto; that t he
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 summer of 2020. 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 inform ation, including, without limitation, the risks that the milestone s
and timelines expected by the Company will not be achieved; that the suits filed against Afime and its reinsurance providers will
not be successful; that there are additional liabilities related to the Mexican assets; that a maiden resource at Las Conchitas is
not produced; 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 Com pany’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, the La Trinidad project, the La s Conchitas area and in respect of its upcoming Annual and Special Meeting of
Shareholders in December, 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.