Gold production by Mako Mining (TSXV: MKO) at San Albino in the first quarter of 2023 took a sharp downward turn. Gold equivalent ounces produced by the company declined 17% from the prior quarter.
Mako managed to produce a total of 8,374 gold equivalent ounces during the third quarter, versus 10,091 ounces in the fourth quarter. The lower production follows the company seeing decline in its gold and silver grades in ore from both its diluted vein as well as its historical dumps.
“In Q1 2023 the plant began consistently operating at 600 tonnes per day. The Company achieved this milestone of operating at 20% above nameplate capacity with no additional capital requirements. Q1 production was moderately lower than Q4 2022 as the Company transitioned from Phase 2 to Phase 3 Mining of the West Pit at San Albino,” commented CEO Akiba Leisman.
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Gold grades mined in the diluted vein declined from 10.15 g/t to 9.68, while grades in historical dumps declined from 2.74 g/t to 2.62 g/t. A total of 18,029 tonnes of ore was mined from the diluted vein, a decline from 23,103 tonnes in the prior quarter. Mining of the historical dump meanwhile increased from 27,790 tonnes to 29,210 tonnes.
The increase in historical dumps being mined is said to be a result of phase 2 mining at the West Pit at San Albino concluding in February, leading the company to focus on waste development for phase 3 of the pit. Mining of higher grade ore under phase 3 is said to have begun in April.
Milling operations meanwhile saw a total of 587 tonnes per day processed, an improvement over the 563 tpd average posted in the fourth quarter.
Finally, Mako indicated that it managed to sell 8,820 gold equivalent ounces in the first quarter, a decline from 10,084 ounces the previous quarter. The average realized price of gold however improved dramatically from $1,726 to $1,886 per ounce.
Mako Mining last traded at $2.13 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
