Mako Mining Provides Q3 Production Results
LEGAL*54244778.1
1
595 Burrard Street, Suite 2833
Vancouver, BC V7X 1K8
Tel: (604) 646-1580
www.makominingcorp.com
TSX-V: MKO | OTCQX: MAKOF
October 12, 2021
TSX-V: MKO; OTCQX: MAKOF
Mako Mining Provides Q3 Production Results
Mako Mining Corp. (TSX-V: MKO; OTCQX: MAKOF) (“Mako” or the “Company”) is pleased to provide third
quarter 2021 (“Q3 2021”) production results from its San Albino gold mine (“San Albino”) in northern Nicaragua,
which is the first full quarter of production results since declaring commercial production on July 1, 2021. Financial
results for Q3 2021, including detailed reporting of our operating costs, are expected in November.
Q3 2021 Production Highlights
• 51,210 tonnes mined containing 10,498 ounces of gold (“oz Au”) at a blended grade of 6.38 grams per
tonne gold (“g/t Au”)
o 14,329 tonnes mined containing 7,278 oz Au from diluted vein material at 15.80 g/t Au
o 36,881 tonnes mined contain ing 3,220 oz Au from historical dump and other mineralized material
above cutoff grade (“historical dump + other”) at 2.72 g/t Au
o 15.5:1 strip ratio
• 33,441 tonnes milled containing 8,873 oz Au at a blended grade of 8.25 g/t Au
o 56% and 44% from diluted vein and historical dump + other, respectively
o 429 tonnes per day (“tpd”) milled at 85% availability
o 92.9% gold recoveries
• 129,031 tonnes in stockpile containing 10,960 oz Au at a blended grade of 2.64 g/t Au
• 8,239 oz Au recovered and 8,280 oz Au sold at an average realized price of US$1,783 per ounce
Akiba Leisman, Chief Executive Officer of Mako states that, “ this quarter was the first full quarter of commercial
production at San Albino. The mine is performing well and the mill is being fine-tuned. In September, 4,335 oz Au
were mined which represents a 19% and 72% increase from August and July , respectively. Despite operational
challenges relating to labor availability and m inor start -up issues , the process plant operated at 429 tpd at 85%
availability. Adjustments to the plant , along with additional hiring and training of key personnel , have increased
plant availability and we expect to be at nameplate capacity of 500 tpd in the fourth quarter . Operating cash flow
from the mine is robust and is presently being used to repay liabilities with specific plans for the return of capital to
shareholders expected to be released later this month.”
Table 1 – Production Results
Units Q3 2021
Mined
Diluted Vein
Tonnes t 14,329
Gold Grade g/t 15.80
Contained Gold oz 7,278
Historical Dump + Other*
Tonnes t 36,881
Gold Grade g/t 2.72
LEGAL*54244778.1
2
Contained Gold oz 3,220
Waste
Tonnes t 794,791
Strip Ratio w:o 15.5
Milled
Diluted Vein % 56%
Historical Dump + Other* % 44%
Tonnes t 33,441
Gold Grade g/t 8.25
Contained Gold oz 8,873
Mill Availability % 85%
Average Tonnes per Day t 429
Recovered
Recoveries % 92.9%
Gold Recovered oz 8,239
Gold Sold oz 8,280
Average Realized Price US$/oz 1,783
* Includes historical dump, hanging wall, foot wall, historical muck and
all other non-vein mineralized material above cutoff grade.
Table 2 – Quarter End Stockpile Statistics
Units Q3 2021
Diluted Vein*
Tonnes t 3,545
Gold Grade g/t 11.86
Contained Gold oz 1,352
Historical Dump + Other**
Tonnes t 125,486
Gold Grade g/t 2.38
Contained Gold oz 9,608
Total
Tonnes t 129,031
Gold Grade g/t 2.64
Contained Gold oz 10,960
* Includes stockpiles of mineralized material at the crusher.
** Includes historical dump, hanging wall, foot wall, historical muck and
all other non-vein mineralized material above cutoff grade.
Mining
The mine averaged 557 tpd of diluted vein material and historical dump + other in Q3 2021 with a strip ratio of 15.5
(see Table 1). The stockpile is now approximately 129,000 tonnes and is comprised of 3,545 tonnes of diluted vein
material at 11.86 g/t Au and 125,486 tonnes of historical dump + other at 2.38 g/t Au for a total of 10,960 oz Au (see
Table 2).
Since the end of August, more than 50% of the diluted vein material has been coming from the Porcelana Zone, which
is being blended with historical dump + other at the mill. The Porcelana Zone, which has the highest grade-thickness
LEGAL*54244778.1
3
profile encountered at San Albino, is expected to make up the majority of the diluted vein tonnes for the foreseeable
future.
Reconciliation to the mineral resource estimate prepared by Mine Development Associates a division of RESPEC,
out of Reno, Nevada has been positive, especially on grade. A detailed mine reconciliation update is expected to be
released next month. A technical report for the updated mineral resource estimate was filed in accordance with
National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-1 01”) under the Company’s
SEDAR profile at www.sedar.com and is available on the Company’s website at www.makominingcorp.com (see
press release dated October 19, 2020).
Milling
All components of the 500 tpd gravity and carbon-in-leach processing plant have been fully operational since the
beginning of May 2021. Since declaring commercial production on July 1st, the plant has been averaging 429 tpd at
85% availability (see Table 1). Since this time, the plant has been processing 56% diluted vein material and 44%
historical dump + other to achieve an average blended grade of 8.25 g/t Au and recovering an average of 92.9% (see
Table 1). Throughput was impacted by labor availability issues that persisted over the quarter, but have eased
substantially in September. The Company implemented an aggressive recruitment campaign and adjusted salaries
where appropriate to mitigate these issues.
In July, process plant throughput was impacted by timber from historical underground workings making its way into
the plant. Adjustments to mitigate this issue are working, and recoveries do not appear to have been affected.
Prior to the end of August, the gravity circuit was only operational for short periods of time to reduce the need for
additional fresh water coming into the plant. The Knelson concentrator requires a significant amount of clean water
to run properly, and the Company wanted to maintain a neutral water balance during the current rainy season, which
ends this month. Adjustments were made to the filter press and various pumps throughout the plant such that reliably
clean process water is now available from the tailings filter press. The gravity circuit is now operating continuously,
and is expected to improve recoveries and reduce processing costs of the high-grade mineralization coming from the
Porcelana Zone.
In September, the carbon elution circuit was offline for a total of nine days. Increased levels of training and
improvements to our carbon advancement pumps have improved the elution circuit availability. Additionally, we are
adding an additional carbon stripping vessel to the two vessels currently in use to ensure uninterrupted availability.
This additional stripping vessel capacity will be available early next year.
All of the abov e mentioned impro vements to t he process plant, and th e increased training of our workforce , are
expected to result in the plant reaching nameplate capacity of 500 tpd in the fourth quarter.
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
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 one of the highest-grade open pit
LEGAL*54244778.1
4
gold mines globally . Mako’s pr imary objective is to ope rate 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, T elephone: 203-862-7059,
E-mail: [email protected] or visit our website at www.makominingcorp.com and SEDAR
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-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 , that the financial results
for Q3 2021, including detailed reporting of operating costs, are expected in November; that the Porcelana Zone, is expected to
make up the majority of the diluted vein tonnes for the foreseeable future; that a detailed mine reconciliation update is expected
to be released next month; that the Company expects to reach nameplate capacity of 500 tpd as newly hired employees gain
additional training and e xperience; that the gravity circuit, which can now be operated continuously, is expected to improve
recoveries and reduce processing costs of the high-grade mineralization coming from the Porcelana Zone; the expected return
of capital to shareholders to be announced later this month ; the Company’s drill program over the next 12 months ; that the
additional stripping vessel capacity will be available early next year; and that Mako will meet its objective to operate San Albino
profitably and 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, changes in the Company’s exploration and development plans
and parameters; unanticipated costs; that the Company’s cash flow generation is weaker than expected and inhibits the
Company’s ability to repay its debts or pursue its plans for a return of capital to shareholders; 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 Q3 production results at San Albino and its plans
and expectations for its San Albino mine, 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.