Mako Mining (TSXV: MKO) this morning posted its first quarter production results for its San Albino mine in Nicaragua. The company saw a total of 11,577 ounces of gold produced during the quarter.
The results mark the third quarter since the company declared commercial production at the mine last July. Production in terms of gold ounces declined on a quarter over quarter basis, evidently the result of lower head grades being achieved.
Production declined 5.5% from 12,251 ounces in the fourth quarter to 11,577 ounces in the current quarter, despite tonnes mined increasing from 44,160 tonnes in Q4 to that of 46,780 tonnes in Q1. Grades meanwhile declined from 8.63 g/t gold to 7.23 g/t gold.
In terms of milling, the company substantially improved tonnes milled on a quarterly basis from 38,313 in Q4 to 46.869 in Q1, resulting in a total of 10,843 gold ounces, versus 11,101 ounces in the prior quarter. Grades declined here as well, falling from 9.01 g/t gold to 7.20 g/t gold, which is said to be the result of a “much higher amount of fresh feed which contains a higher amount of organic carbon.”
Notably, the mill is currently operating at a rate of 596 tonnes per day, which is above the nameplate capacity of 500 tonnes. Running above capacity is expected “for the foreseeable future.” Recoveries are currently reported as being 85.6%, which is expected to see minor improvements following ongoing optimization.
The company also reported that 9,580 ounces of gold were sold during the quarter, although an average price figure was not provided. The company also indicated that over US$4.0 million in debt was repaid during the period as well.
Full financial results for the quarter are slated to be released in May.
Mako Mining last traded at $0.335 on the TSX Venture.
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