Operator: Mako Mining Corp.
Metal(s): Gold
San Albino Gold Stream, Silver Stream and Royalty
DESCRIPTION
Gold Stream equivalent to a 3% NSR on high-grade open pit gold production
Silver stream which equates to 13,500 ounces per month of silver until May 2025 with an option to extend*
Key Facts
Location: Nueva Segovia, Nicaragua
Status: Operating Mine (since 2021)
Mine Type: Open pit
Project Highlights
- Produced 8,374 gold oz. in Q1, 2023
- Currently in production at approximately 590 t/d
- Higher grade Las Conchitas expected to start production in 2023
- Permits received for a potential mill expansion to 1,000 t/d
Royalties
- Sailfish holds a gold stream equivalent to a 3% NSR on the 3.5-sq.-km area that includes the San Albino gold mine and a 2% NSR on a 134.5-sq.-km area around the operation. In addition, Sailfish has a silver stream that will deliver 13,500 ounces of silver per month until May 2025 with an option to purchase all future silver production from the entire land package after the initial 24-month term for US$1 million.
Outlook
- San Albino is a high-margin open pit gold operation with by-product silver. Based on a measured and indicated pit resource grade of 9.54 g/t Au, the project is one of the highest-grade surface mines in the world. Mako Mining expects to start production from a second pit called Las Conchitas in 2023 which is expected to increase both gold and silver grades at the mill.
Geology and Mineralization
Mineralization at San Albino appears consistent with the orogenic gold deposit model: this deposit type is ultimately traced back to orogenesis (collisional plate tectonics). Orogenic deposits tend to occur on a district scale and are one of the largest deposit types in terms of gold endowment, tend to be high-grade and typically occur in clusters.
The gold-bearing veins at the project formed over a period of deformation, with alteration indicating a low degree of metamorphism. This metamorphism, together with thrust fault control suggests a high-level orogenic deposit at San Albino, analogous to Kinross’ (TSX: KGC; NYSE: K) Paracatu gold mine in Brazil.
Gold at San Albino is hosted in west-dipping quartz veins within shear (higher-strain) zones. The shear zones are typically stacked in a subparallel fashion, creating vein systems.
History & Milestones
- Permit to construct and operate (up to 500tpd) received September 2017 (announced Sep 12, 2017)
- Positive metallurgical test results at San Albino with optimized overall gold recoveries ranging from 86.1 to 96.9% (announced Dec 13, 2019)
- Permit amendment to process up to 1,000tpd received August 2020 (announced August 24, 2020)
- Mining of first four benches containing vein material at San Albino yields 7,734 oz Au at a diluted grade of 17.45 g/t Au (announced Apr 19, 2021)
- Construction completed with commercial production declared effective July 1, 2021 (announced Jul 13, 2021)
Reserves & Resources
The San Albino gold project is part of the San Albino-Murra concession (8,700 hectares) within a larger contiguous land package of approximately 18,817 hectares. San Albino is located approximately 173 kilometers north of Managua, the nation’s capital, and approximately 15 kilometers southeast of the northern border of Nicaragua with Honduras.
Gold grades typically associated with high-cost underground mining are amenable to low-cost open pit mining at San Albino.
- Indicated mineral resources (In-Pit): 150.4koz @ 7.13 g/t Au
- Inferred mineral resources (In-Pit): 192.0koz @ 6.78 g/t Au
Permit to construct and operate (up to 500tpd) received September 2017 (announced September 12, 2017).
Positive metallurgical test results at San Albino with optimized overall gold recoveries ranging from 86.1 to 96.9% (announced December 13, 2019).
Construction >70% complete with first gold pour expected January 2021 (announced June 22, 2020).
Permit amendment to process up to 1,000tpd received August 2020 (announced August 24, 2020).
Please refer to the corporate presentation posted on this website for details of the 3% gold stream and 2% NSR owned by Sailfish on San Albino and the surrounding area.
More information on San Albino can be found on Mako Mining’s website at www.makominingcorp.com
For more information on Nicaragua, please watch the PRONicaragua Overview video below
