Ihor Liski, a businessman and a Chairman of the Board of Effective Investments Group, announced the start of gold mining in Nicaragua in the San Albino project of Mako Mining Corp. listed on the Toronto Stock Exchange.
“The project at the San Albino mine, which was attended by private investors, has started, and I think that by the end of the second quarter we will debrief this in a report,” he told Interfax-Ukraine during the opening of the protein supplements plant Feednova (Busk, Lviv region).
Mako Mining previously said that in the second half of May, all components of the 500 tonnes per day gravity and carbon carbon-in-leach (CIL) processing plant were fully operational and the plant was reaching over 75% of rated capacity. Processing of raw materials with an average gold grade of 16.5 grams per tonne began on May 12, 2021, but the exact data will be provided later.
“[…] provided that the processing plant continues averaging these levels for the remainder of the quarter, Mako expects to be in a position to declare commercial production on July 1, 2021,” the company said.
It said that an average of 982 tonnes per day of raw material have been mined since the beginning of April. The stockpile is now approximately 105,856 tonnes and is comprised of 17,596 tonnes of diluted vein material at 15.37 grams per tonne gold and 88,260 tonnes of historical dump material at 2.47 grams per tonne gold for a total of 15,687 ounces of gold.
Mako Mining also said that the company’s cash balance, which had decreased due to the about five-week delay in the plant’s start-up, has now begun to improve as gold is being sold. “Provided that the plant continues to operate at its current throughput, the company expects to generate enough cash flow from operations to continue funding exploration and servicing debt,” the company said in a report on May 20, adding that a comprehensive operating update is expected in July.
In the summer of 2016, Liski announced on Facebook that he was building a gold mine in Nicaragua, but currently it is about open pit mining.
According to Mako Mining’s presentation, its main shareholders are funds managed by Wexford Capital LP – 51.8%, management and directors – 8.2%, Stephens Investment Management – 4.1%, and another 35.9% belong to other shareholders. Interfax-Ukraine has not yet obtained information on the amount of Liski’s participation in this project.
According to the presentation, it is about a project in the Nueva Segovia region, 173 km north of Managua, and plans to double processing capacity in 2022. Measured and indicated mineral resources are 95,400 ounces with a grade of 9.54 grams per tonne, and inferred ones are 62,000 ounces with a grade of 8.5 grams per tonne.
The market capitalization of the company from March to June increased from $166.7 million to $219.2 million, debt remained at $21.5 million, and free cash decreased from $1.4 million to $1 million.
