Mako Mining (TSXV: MKO) this morning provided production results for the third quarter, which makes the fifth quarter of production for the company. The results were highlighted by 10,531 contained gold ounces being mined.
Performance overall was down on a quarter over quarter basis, with the firm managing to mine 21,655 tonnes of diluted vein material at a grade of 11.44 g/t gold, versus 22,560 tonnes in the second quarter at 12.85 g/t gold. Results were slightly improved upon with historical dumps, where the firm mined 30,429 tonnes at 2.63 g/t gold, versus 24,660 tonnes last quarter at 2.65 g/t gold.
“Q3 2022 was a tale of two halves. Beginning in March 2022, the Company experienced metallurgical challenges with the transition from oxide to fresh material causing a diminution of recoveries in Q2(74.5%) and the first six weeks of Q3,” commented CEO Akiba Leisman.
Mill performance was down, with 44,452 tonnes of gold milled, resulting in 512 tonnes per day, down from 589 tonnes per day in the second quarter. Contained gold amounted to 11,172 ounces, however with a recovery rate of just 77.0%, the company managed to recover 8,598 ounces. Comparatively, the second quarter saw contained gold of 11,576 ounces, but a 74.5% recovery rate resulted in gold recoveries of 8,630 ounces.
“Optimization of the plant along with new highly detailed grade and lithological controls in our mining procedures led us to correct these issues midway through the quarter, such that recoveries are now at or above the 86% recoveries announced in connection with our metallurgical testing from 2019,” continued Liesman.
Gold sold during the quarter came in at 8,328 ounces, at an average price of $1,724 per ounce, versus the 9,027 sold in Q2 at an average price of $1,866 per ounce.
“The Company expects that the plant will recover substantially more gold in Q4 than the 8,598 ounces recovered in Q3. Operating cash flow from the mine remains robust, with exploration expenditures increasing to US$1.3 million per month, an aggregate of US$13.2 million of principal being repaid under the Company’s loan facilities with Wexford and Sailfish Royalty Corp. since the beginning of Q3 2021, and over 2 million common shares repurchased through our normal course issuer bid,” concluded Liesman.
Mako Mining last traded at $0.165 on the TSX Venture.
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