We received drilling permits at La Segoviana (a few weeks ahead of schedule).
We also began the process of acquiring the most prospective areas of surface rights. I’ve mentioned this publicly before — I think Segoviana will be a mine w/in 3 years.
Cesar (VP Corp Dec) has also left the company to focus on his other endeavors — especially as Executive Chairman of $btr.v when Marc-Andre comes in as CEO in a few weeks.
We’re sorry to see him go.
$mko.v
Always fills me with Sweet Emotions that one of my favorite singers follows us so closely!!
Today’s thread is about sampling and dilution (key risk #3 of my pinned tweet). I have real time mining pictures below.
Punchline is tolerances are tight and dilution has been ~10%.
But data coming from just 1 or 2 benches ain’t worth schist.
$mko.v 2/8 Recap of what we’re doing.
6-8m blast holes, taking 1-1.5m samples along the way. With BH data, open up 3m half mining benches. Geologist mark contact with FW/HW with blue paint. With excavator, remove the waste up to paint. Then remove “ore” to the FW contact.
$mko.v 3/8 Blast holes have 2 problems.
1. geology is not so kind to have straight 1m lines, so sample grades at contact point will be diluted.
2. RC and DH have good corr., but BH systematically underreport high grade (we have data to support this — prob. because of fines)
1/ Crib Notes for those that are new to Mako Mining
3 projects: 1. Building 500tpd mine; one of the highest grade open-pit mines globally 2. Near mine exploration — goal of doubling production by 2022 3. Regional exploration to prove that this is an orogenic camp
2/ Key Risks
1. We’re in Nicaragua (lovely and SAFE country, BTW) 2. Developing mine on basis of PEA 3. Shallow dipping structures may lead to mining dilution 4. Grade variability
3/ Key Opportunities
1. Infill results showing grades much higher than resource est. 2. Exploration drilling has systematically discovered similar material to the mine 3. 23km of untested strike 4. Underground — if economic, could be order of magnitude bigger than open pit.