Adelaide Newsletter - SeptemberMako Mining (TSXV: MKO; OTCQX: MAKOF) Mako had a very interesting month with news from all three key focus areas on its concessions in northern Nicaragua. The Company announced that it has received permits to allow for processing of up to 1,000 tpd at San Albino, doubling potential future production at the nearly completed mine (first gold pour expected in Q1 2020). The additional ore required to feed this increased production rate will likely come from Las Conchitas, a target area ~2.5 km to the south of San Albino where Mako is currently working towards delineating a resource amenable to open-pit mining. Drilling in this region has been ongoing, with results every few weeks. In August, the Company announced the thickest zone yet at Las Conchitas: 22.26 g/t gold over 4.3 metres within a wider mineralized zone of 16.1 metres (both true widths). Lastly, the Company announced results from a reconnaissance exploration program on its recently acquired Potrerillos concession. Initial assay results indicate excellent potential to extend the mineralization encountered at San Albino onto the contiguous Potrerillos Concession. This concession was acquired late last year, and the market has given Mako no value for it yet. Despite positive news in the month (to recap: doubling future production, continued high-grade results at Las Conchitas, and putting Potrerillos on the map for investors), the stock remains rangebound between $0.40 and $0.525. Why? We think the market is waiting on the highly anticipated resource update at San Albino due out in the next 3 to 4 weeks.
Why we like MKO
- Mako’s San Albino gold project is one of the highest grade open-pit development projects globally.
- Located in Nueva Segovia, Nicaragua, ~173 km north of Managua, it is accessible via paved highway.
- Gold grades typically associated with high-cost underground mining are amenable to low-cost open-pit mining at San Albino.
- An updated resource estimate at San Albino is due this fall.
- Construction is well underway, with first gold pour expected early next year.
- Exploration activities at Las Conchitas have continued to return exceptionally high-grade, near-surface intervals. A maiden resource on this project is expected to be released in 2021.
Construction of the mine and the current drill program are now fully funded.