Mako Mining Provides Q1 2023 Production Results and Corporate Update
LEGAL*57291589.1
1
Suite 700 - 838 West Hastings St.
Vancouver, BC - V6C 0A6
IR: (647) 203-8793
www.makominingcorp.com
TSX-V: MKO | OTCQX: MAKOF
May 12th, 2023
TSX-V: MKO; OTCQX: MAKOF
Mako Mining Provides Q1 2023 Production Results and Corporate Update
Mako Mining Corp. (TSX-V: MKO; OTCQX: MAKOF) (“Mako” or the “Company”) is pleased to provide
first quarter 2023 (“Q1 2023”) production results from its San Albino gold mine (“San Albino”) in northern
Nicaragua, which is the seventh full quarter of production results since declaring commercial production
on July 1, 2021. Financial results for Q1 2023, including detailed reporting of our operating costs , are
expected to be released by the end of this month.
Q1 2023 Production Highlights
• 47,238 tonnes mined containing 8,072 ounces of gold (“oz Au”) at a blended grade of 5 .32
grams per tonne gold (“g/t Au”) and 11,001 ounces of silver (“oz Ag”) at a grade of 7.24
grams per tonne silver (“g/t Ag”)
o 18,029 tonnes mined containing 5,611 oz Au at 9 .68 g/t Au and 6,219 oz Ag at 1 0.73 g/t
Ag from diluted vein material
o 29,210 tonnes mined containing 2,461 oz Au at 2.62 g/t Au and 4,782 oz Ag at 5.09 g/t Ag
from historical dump and other mineralized material above cutoff grade (“historical dump
+ other”)
o 36.3:1 strip ratio overall which includes accelerated waste development of the Phase 3 in
West Pit.
• 49,675 tonnes milled containing 10,119 oz Au at a blended grade of 6.34 g/t Au and 7,869
oz Ag at 4.93 g/t Ag
o 38% and 62% from diluted vein and historical dump and other, respectively
o 587 tonnes per day (“tpd”) milled at 94% availability
o Recoveries of 82.5% for gold in Q1 2023
• 144,315 tonnes in stockpile containing 8,563 oz Au at a blended grade of 1.85 g/t Au
• 8,374 oz Au Equiv. recovered and 8,820 oz Au. Equiv. sold during the quarter
Akiba Leisman, Chief Executive Officer of Mako states that, “ in Q1 2023 the plant began consistently
operating at 600 tonnes per day (“tpd”). The Company achieved this milestone of operating at 20%
above nameplate capacity with no additional capital requirements. Q1 production was moderately lower
than Q4 2022 as the Company transitioned from Phase 2 to Phase 3 Mining of the West Pit at San
Albino. Mining the high- grade Phase 3 West Pit commenced at the end of April , and production will be
further supplemented as Mako begins mining Las Conchitas later this month. A maiden resource at Las
Conchitas is nearing completion and is now scheduled to be publicly released in early Q3.”
LEGAL*57291589.1
2
Table 1 – Production Results
* Includes historical dump, hanging wall, footwall, historical muck and all other non-vein mineralized material above cutoff grade.
**For the purpose of calculating revenue, payments to Sailfish are deducted from the Average Realized Price.
(1) Equiv. Gold ounces are calculated by: Silver Rec. or Silver Sold (oz) / Avg. Realized Price of Gold (US$/oz) / Avg. Realized Price of Silver
(US$/oz)
Units Q2 2022 Q3 2022 Q 4 2022 Q1 2023
Mined
Diluted Vein
T
onnes t 22,560 21,655 23, 103 18,029
Gold Grade g/t 12.85 11.44 10. 15 9.68
Silver Grade g/t 19.29 16.55 14. 50 10.73
Contained Gold oz 9,324 7,962 7, 543 5,611
Contained Silver oz 13,988 11,520 10, 768 6,219
Historical Dump + Other*
Tonnes t 24,660 30,429 27, 790 29,210
Gold Grade g/t 2.65 2.63 2. 74 2.62
Silver Grade g/t 5.79 6.35 6. 63 5.09
Contained Gold oz 2,097 2,569 2, 447 2,461
Contained Silver oz 4,593 6,217 5, 924 4,782
W a ste
Tonnes t 1,249,926 1,190,243 1, 467,739 1,713,743
Strip Ratio Total 26.5 22. 9 28.8 36.3
Milled
Diluted Vein % 47% 56% 57% 38%
Historical Dump + Other* % 53% 44% 43% 62%
Tonnes t 49,332 44,452 49, 204 49,675
Gold Grade g/t 7.30 7.82 7. 55 6.34
Siver Grade g/t 12.85 17.58 14. 70 4.93
Contained Gold oz 11,582 11,172 11, 937 10,119
Contained Silver oz 20,374 25,122 23, 260 7,869
Mill Availability % 92% 94% 95% 94%
Average Tonnes per Day t/day 589 512 563 587
Recovered
Gold Recovery % 74.5% 77.0% 82. 8% 82.5%
Gold Recovered oz 8,630 8,598 9, 882 8,347
Gold Equiv. Recovered (1) oz 8,738 8,769 10,091 8,374
Gold Sold oz 9,027 8,328 9, 956 8,721
Gold Equiv. Sold (1) oz 9,168 8,470 10,084 8,820
Avg. Realized Price Gold ** US$/oz 1,866 1,724 1, 726 1,886
Avg. Realized Price Silver US$/oz 21 20 22 20
w: o
LEGAL*57291589.1
3
Table 2 – Quarter End Stockpile Statistics
* Includes stockpiles of mineralized material at the crusher.
** Includes historical dump, hanging wall, footwall, historical muck and all other non-vein mineralized material above cutoff grade.
Mining
The mine averaged 588 tpd of diluted vein and historical dump + other material in Q1 2023 with a strip
ratio of 36.3 which included accelerated waste development of the Phase 3 in West Pit . The current
stockpile is 144,315 tonnes containing 8,563 oz Au at 1.85 g/t Au.
Phase 2 mining of diluted vein material from the primary West Pit at San Albino concluded in February
and was supplemented by diluted vein material coming from the Central and SW Pits during the quarter.
Beginning in March, the Company focused on waste development for Phase 3 of the West Pit.
Beginning the last week of April, mining the high-grade Phase 3 diluted vein material began, and permits
to begin mining the initial Las Conchitas pits are expected imminently, which will also increase the
amount of diluted vein material going forward.
The average grade of the diluted vein was 9.68 g/t Au during the quarter. A combination of geological
mapping, additional lab testing, and new procedures implemented by our mine geologist have all
contributed to improved mining selectivity, which limits the amount of preg -robbing material being fed to
the plant, thereby enhancing recoveries . New blending processes allowed the mill to maintain high
throughput without sacrificing recovery.
Lastly, initial development for a second waste dump began during the quarter with an initial capacity of 6
million tonnes (“Mt”) which can eventually be expanded to 23 Mt.
Milling
All components of the 500 tpd gravity and carbon- in-leach processing plant have been fully operational
since the beginning of May 2021. During Q1, 2023, the plant has been averaging 587 tpd at 94%
availability (see Table 1), including averaging 607 tonnes per day net of availability in March. In Q1 2023
Units Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Diluted Vein*
Tonnes t 2,959 4,061 224 0 0
Gold Grade g/t 7.95 11.81 8.01 0.00 0.00
Contained Gold oz 756 1,543 58 0 0
Historical Dump + Other**
Tonnes t 145,091 135,340 144,401 146,560 144,315
Gold Grade g/t 2.25 2.72 2.64 2.24 1.85
Contained Gold oz 10,513 11,842 12,236 10,554 8,563
Total
Tonnes t 148,050 139,401 144,624 146,560 144,315
Gold Grade g/t 2.37 2.99 2.64 2.24 1.85
Contained Gold oz 11,269 13,385 12,293 10,554 8,563
LEGAL*57291589.1
4
the plant processed 38% diluted vein material and 62% historical dump + other material to achieve an
average blended grade of 6.34 g/t Au. Gold recovery for the quarter was 82.5% (See Table 1). Due to
the transition between Phase 2 and Phase 3 mining at the West Pit of San Albino, there was a relatively
lower percentage of diluted vein material available compared to previous months. Now that high -grade
diluted vein material from Phase 3 of the West Pit has commenced along with material coming from Las
Conchitas later this month, the relative percentage of diluted vein material will revert towards historical
norms of approximately 50%. This will lead to higher gold production levels beginning later this quarter.
The gold recovery in Q1 2023 was very close to the gold recovery during Q4 2022 despite the mill
processing rate being 24 tpd higher and the gold head grade being 1.2 g/t lower than the previous
quarter. 8,820 gold equivalent ounces (8,721 gold ounces) were sold in Q1 2023.
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.
Corporate Update
Grant of RSUs and Options
The Company also announces the grant of 540,000 incentive stock options to certain directors, officers.
Employees and/or consultants. The options will be exercisable, in whole or in part, at a price of $2.13 for
a period of five years with vesting in 1/4 equal installments over a period of three years, with the first 25%
vesting on the date of grant.
The Company also announces that as part of its incentive plans, it has granted 38,829 Restricted Stock
Units (“RSUs) to officers of the Company. As such, the issuance of the RSUs to insiders is considered a
related party transaction within the meaning of Multilateral Instrument 61- 101 – P rotection of Minority
Security Holders in Special Transactions (“MI -61-101”). The Company relies on exemptions from the
formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and
5.7(a) of MI 61-101 on the basis that participation in the RSUs by insiders will not exceed 25% of the fair
market value of the Company’s market capitalization. The Company will file a material change report in
respect of the related party transaction in connection with the grant of RSUs.
On behalf of the Board,
Akiba Leisman
Chief Executive Officer
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
LEGAL*57291589.1
5
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, Telephone: 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, other than historical fact, may be considered
“forward-looking information” within the meaning of applicable securities laws. The forward- looking information
contained herein is based on the Company’s plans and certain expectations and assumptions, including that Q1,
2023 detailed operating costs and financial results will be available by the end of this month ; the additional
optimizations noted may improve recoveries further ; and that the Company can operate San Albino profitably in
order to fund exploration of prospective targets on its district -scale land package. 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; that the Company is not successful
in operating San Albino profitably and/or fund ing its exploration of prospectus targets on its district -scale land
package; political risks and uncertainties involving the Company’s exploration properties; the inherent uncertainty of
cost estimates and the potential for unexpected costs and expense; commodity price fluctuations 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 the Company’s expectations
regarding the Company’s Q1 2023 production results at San Albino gold project, 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.