Mako reports high-grade gold in next mining area at San Albino

Drilling outside the MDA resource returned results including 5.1m at 18.56g/t and 1.1m at 70.59g/t from the Arras zone in the Central Pit.

“Although the Arras zone is more complex than the nearby San Albino zone, we are confident that the selective openpit mining techniques that are proving successful in mining the San Albino zone should be equally successful in mining the Arras zone,” CEO Akiba Leisman said.

The Arras zone was believed to be last mined in 1943.

Mako also announced plans to increase its resource expansion and regional exploration drilling over the next 12 months to 60,000m and has contracted another three rigs.

Leisman said regional prospecting had identified targets many kilometres from San Albino including Aguafria, where a “relatively uncommon silver rich zone” returned samples of up to 2,989g/t silver.

Mako declared commercial production at San Albino on July 1.

It refinanced debt with a US$8 million gold-linked loan last month.

Its shares (TSX: MKO) are near the middle of a 12-month range, closing yesterday at C33c which capitalises it about $218 million (US$171 million).

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