VANCOUVER, Feb. 19, 2019 /CNW/ - Mako Mining Corp. (TSX-V: MKO) (the "Company" or "Mako Mining") is providing an update of its operations at La Trinidad in Mexico.
As a result of the completion of the acquisition transaction by the Company (then named Golden Reign Resources Ltd.) of Marlin Gold Mining Ltd. (see Mako Mining press release dated November 9, 2018), the Company now holds a 100% interest in the La Trinidad heap leach gold operation in Sinaloa State, Mexico (the "La Trinidad Mine"). The La Trinidad Mine declared commercial production in November 2014 and has operated continuously with the exception of pit dewatering following hurricanes Linda in September 2015 and Willa in October 2018.
Most recently, Hurricane Willa, a Category 3 hurricane that crossed over the La Trinidad Mine on October 24, 2018 (see Marlin Gold Mining Ltd. press release dated October 26, 2018), led to a significant amount of water flooding directly into the Taunus pit. The heap leach pad, and its associated infrastructure, also received a significant amount of water during the event. As part of the Company's emergency planning, pumps were active and working throughout the storm and no known environmental discharge occurred. Importantly, no reported injuries were sustained by any Mako Mining employees or contractors and the crusher and processing plant did not sustain any significant damage.
Mako Mining is pleased to report that dewatering of the Taunus pit is nearing completion and mining has recommenced. Crushing and stacking on the leach pad has also resumed and the crusher stockpile is being replenished. This month, to date, the Company has mined over 71,000 tonnes of ore at an average grade of 1.22 g/t gold and has crushed over 53,000 dry tonnes of ore at an average grade of 1.33g/t gold. The current ore stockpile has been built up to over 37,000 tonnes at 1.23 g/t gold to date. Although the Company has made good headway with the removal of mud and other debris in the pit, it continues to evaluate the safest and most effective mine plan to recover the remaining gold ounces.
While Mako Mining has experience dealing with hurricane related insurance claims, it is not currently in a position to estimate the amount of the insurance claim or the eventual reimbursement that it will receive, nor is the Company in a position to comment on future cash flows from the La Trinidad Mine until crushing and processing rates return to design capacity.
Kevin Bullock, P.Eng., a mining Engineer and qualified person (as defined under National Instrument 43-101) has reviewed and approved the scientific and technical information contained in this news release regarding La Trinidad in Mexico. Mr. Bullock is the Chief Executive Officer of the Company.
On behalf of the Board,
"Kevin Bullock" Kevin Bullock, P.Eng. CEO
About Mako Mining:
Mako Mining 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 Mining'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 Mining is exploring for gold and silver mineralization on more than 60,200 hectares (602 km2) of land holdings 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 kilometres wide by 23 kilometres long, contains hundreds of historical mines and workings and spans the entirety of the Company's Nicaragua land package.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain statements contained in this news release may be considered "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to information with respect to the Company's strategy, plans or future financial or operating performance, including with respect to the Company evaluating the safest and most effective mine plan to recover the remaining gold ounces from the La Trinidad mine; the Company pursuing its insurance claim in respect of the damages resulting from Hurricane Willa and the eventual recoveries thereunder; future cash flows from the La Trinidad Mine.
Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company not being successful with its insurance claim; future cash flow of the Company being negatively impacted by delays both at La Trinidad and San Albino; the pumping process and other impacts of Hurricane Willa; the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions; fluctuating metal prices; currency exchange rates; the impact of inflation; possible variations in ore grade or recovery rates; unanticipated costs and expenses; and general risks of the mining industry such as failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life; unanticipated weather changes; limitations on insurance coverage and timing and possible outcome of pending claims; as well as those risk factors discussed or referred to herein and in the Company's continuous disclosure available at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods presented, and the Company's plans and objectives, and may not be appropriate for other purposes. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.
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.
SOURCE Mako Mining Corp.
For further information: Mako Mining Corp., Kevin Bullock, Chief Executive Officer, telephone: (416) 408-3703, email: [email protected] or visit our website at www.makominingcorp.com and SEDAR www.sedar.com.
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...