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Mako Gold Limited (“Mako” or “the Company”; ASX:MKG) is pleased to present its Quarterly Activities Report for the period ending 31 March 2022. Activities are reported for exploration at the Company’s flagship Napié Project (“Napié”) and the Korhogo Project in Côte d’Ivoire (Figure 1).
HIGHLIGHTS – NAPIÉ PROJECT - 30,000M DRILLED IN QUARTER
GOGBALA PROSPECT- Drilling identifies two new mineralised zones outside of the current resource drill area returning 6m at 5.05g/t Au and 4m at 4.82g/t Au which includes more than 1km of undrilled Napié Fault providing pathways for resource growth following the maiden Mineral Resource Estimate (MRE) scheduled for Q2-CY22
- 109 of 139 reverse circulation (RC) and diamond drilling (DD) drill holes results reported intersected significant mineralisation, achieving a 78% success rate in drilling which will contribute to the size of maiden MRE. Notable results include:
- NARC660: 17m at 4.13g/t Au from 57m; including 5m at 12.02g/t Au from 62m
- NARC668: 7m at 1.26g/t Au from 22m; and
- 4m at 14.78g/t Au from 93m; including 2m at 27.83g/t Au from 93m
- NARC651: 10m at 1.63g/t Au from 69m; and
- 10m at 3.35/t Au from 102m; including 1m at 22.29g/t Au from 103m
- NARC579: 9m at 3.77g/t Au from 48m
- NARC569: 6m at 5.37g/t Au from 105m; including 3m at 9.61g/t Au from 106m
- NARC619: 1m at 30.89g/t Au from 46m
- NARC697: 6m at 5.05g/t Au from 79m; including 1m at 12.18g/t Au from 80m and 1m at 10.71g/t Au from 82m
- NARC703DD: 6m at 4.28g/t Au from 63m; including 1m at 14.65g/t Au from 68m
- NARC686: 4m at 4.82g/t Au from 113m
- NARC610: 5m at 4.61g/t Au from 158m; including 1m at 15.71g/t Au from 162m
- NARC642: 2m at 12.89g/t Au from 50m
- NARC643: 5m at 3.24g/t Au from 118m; including 1m at 8.17g/t Au from 119m
- NARC584: 1m at 28.93g/t Au from 115m
- NARC623: 15m at 1.17g/t Au from 109m; including 5m at 2.15g/t Au from 110m
- NARC632: 1m at 13.29g/t Au from 150m
TCHAGA PROSPECT
- Final (pre-maiden MRE) 17 RC/DD holes at Tchaga Prospect returned multiple high-grade intercepts, with 14 of 17 holes intersecting significant mineralisation. Notable results include:
- NARC621DD: 41m of mineralisation intersected over 7 zones averaging 2.85g/t Au, including:
- 6m at 1.24g/t Au from 48m; and
- 6.7m at 1.46g/t Au from 160.1m; including 1m at 6.87g/t Au from 160.1m; and
- 19.6m at 4.36g/t Au from 187.4m; including 2.2m at 23.49g/t Au from 189.8m
- NARC512DD: 14.6m of mineralisation intersected over 4 zones averaging 3.32g/t Au, including:
- 4.5m at 6.92g/t Au from 213.1; including 1m at 29.46g/t Au from 216.6m; and
- 5m at 2.28g/t Au from 256m
- NARC559DD: 63.1m of mineralisation intersected over 15 zones averaging 1.25g/t Au, including:
- 3m at 2.66g/t Au from 45m;
- 8.3m at 0.96g/t Au from 115.5m;
- 4.8m at 1.24g/t Au from 165.2m;
- 13m at 1.05g/t Au from 297m;
- 3.5m at 1.55g/t Au from 327.5m;
- 4m at 1.65g/t Au from 336m; and
- 5m at 1.66g/t Au from 361m; including 1m at 5.50g/t Au from 361m
- Results from Tchaga drilling to be included in upcoming maiden MRE scheduled for Q2-CY22
TCHAGA NORTH AND KOMBORO PROSPECTS
- Scout Aircore (AC) drill program completed on Komboro Prospect and partially completed on Tchaga North Prospect ahead of follow-up RC drill program
- Objective of program is to make new discoveries outside of the main Tchaga and Gogbala prospect areas as part of Mako’s overall strategy to define a multi-million-ounce resource on the Napié Permit
KORHOGO PROJECT
- 11,000m auger drilling program completed on high-priority structural and geochemical targets identified from previous work executed by Mako
- Maiden 5,000m RC drilling program planned following results from auger drilling
- The Korhogo Project has no previously recorded exploration and covers 296km2 of prospective tenure located within 15-30 km of Barrick’s 4.9Moz Tongon Gold Mine
CORPORATE
- $3.4M spent on exploration (drilling) this quarter to advance both Napié and Korhogo projects, with healthy $5.9M cash balance remaining at end of quarter
- Mako management was recently on-site to evaluate operations
During and subsequent to the reporting period 16,971m in 124 reverse circulation (RC) holes, 1,722m in 18 diamond drill (DD) holes, and 11,427m in 343 Aircore (AC) holes were drilled for a total of 30,120m drilled on the Napié Project.
The majority of drilling was conducted on the Gogbala Prospect during the reporting period to rapidly advance Gogbala in order to include it with Tchaga in the upcoming maiden MRE scheduled for Q2-CY22.
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MKG:AU
Providence Gold Mines
Investor Insight
Providence Gold Mines’ portfolio of past-producing gold assets with a resource potential of 1 to 4 million ounces, makes it a compelling investment opportunity for investors seeking exposure to undervalued, high-potential gold assets amid a current gold bull market.
Overview
Providence Gold Mines (TSXV:PHD,OTCQB:PRRVF,GR-FRANKFURT:7RH1) is a junior gold exploration company focused on the revitalization of the historic Providence Group of Mines and further unlocking the potential of its high-grade gold deposits within the Mother Lode Gold Belt in Sonora, California. This prolific gold district has historically reportedly produced over 128 million ounces of gold, making it one of the most significant gold-producing regions in North America.
Providence Gold is strategically positioned to benefit from the current gold bull market, as global economic uncertainty, inflationary pressures, and rising demand for safe-haven assets continue to drive gold prices to historic highs. With a portfolio of past-producing gold mines, high-grade drill targets, and a near-term pathway to production through stockpile processing, the company is poised to potentially generate significant value for shareholders. The Providence Group of Mines consists of seven patented mineral claims: Bonita, Consuelo, Fair Play, Good Enough, McCarthy, Mexican and Providence.
This past-producing gold asset was historically one of the more famous high-grade mines in the Mother Lode Belt, with reported production grades exceeding 1 oz/ton (or 31 g/t gold). Mining operations ceased in 1916, leaving behind significant unmined high-grade ore at depth, as well as gold-bearing stockpiles that have since been identified as a near-term cash flow opportunity.
Providence Gold Mines is led by professionals with extensive experience in discovery of new mines in the mother lode district and corporate finance. Their combined expertise in geology, capital markets and project execution positions the company for successful exploration and potential near-term production. This, combined with high-grade historical production, modern geological exploration techniques, and near-term catalysts, Providence Gold is well-positioned to emerge as a high-value gold exploration and development play in a rising gold market.
Company Highlights
- Providence Gold controls a portfolio of gold mines in Tuolumne County, California, situated in the heart of the historic Mother Lode district, a region that has produced over 128 million ounces of gold to date.
- The Providence Group of Gold Mines, consisting of seven patented staked mineral claims, was historically a high-grade producer, with reported grades grossly exceeding 1.0 oz/ton.
- The company has identified gold-bearing stockpiles from historical operations that could provide an immediate cash-flow opportunity through simple gravity-based processing.
- Utilizing 3D terrestrial LIDAR laser scanning technology and traditional exploration methods, Providence Gold has identified new high-grade drill targets beneath and between historical stopes, supporting a resource potential estimate of 1 to 4 million ounces.
- The company has outlined a 4,000-meter core drilling program, targeting high-grade zones identified through 3D modeling, trenching and soil geo chemistry and traditional mapping.
Key Project
Providence Group of Mines
The Providence Group of Mines, located in Tuolumne County, California, sits within the Mother Lode Belt, a historic gold-producing region responsible for over 128 million ounces of gold production since the 19th century. The Mother Lode Belt is one of the most significant gold districts in the United States, characterized by high-grade mesothermal vein-hosted orogenic gold deposits. The district features structurally controlled mineralization associated with regional shearing and faulting, forming a series of gold-bearing quartz veins that have been the focus of both historic and modern mining operations.
Gold mining at the Providence Mines dates back to 1894, with extensive production recorded until 1916. At the time of closure, the mine was actively extracting high-grade ore, but operations ceased due to a dispute and a regional fire that destroyed surface infrastructure, rather than depletion of mineral resources. Historical reports indicate the mine's lower levels, specifically from the 10th to 12th levels, were actively being developed into rich ore shoots at the time of shutdown, suggesting that significant mineralization remains in place.
The ore shoots within the Providence Gold system are reported to have historically produced between 30,000 to 50,000 ounces per stope, with average gold grades exceeding 1 oz/ton (31 g/t gold). The McCarthy Mine, one of the key areas within the Providence Group, has returned surface samples with gold assays ranging from 77 g/t to 97 g/t gold, further demonstrating the district’s exceptional high-grade potential. Importantly, the historical mine workings only reached a depth of 100 feet, leaving down-dip extensions of the ore body entirely unexplored.
Modern structural interpretations and geophysical surveys suggest that gold mineralization at Providence is open at depth and along strike, with a strong likelihood of additional undiscovered high-grade ore shoots. Given that mining operations in the early 20th century were limited by technology and capital, the potential for discovering new gold zones using modern exploration techniques remains highly attractive.
Exploration and Development Plans
Providence Gold has embarked on a multi-phase exploration strategy designed to assess the down-dip and strike extensions of near surface, historically mined high-grade gold veins, as well as evaluate the potential for bulk-tonnage, low-grade gold mineralization at surface. The company’s technical approach integrates cutting-edge technologies, including 3D terrestrial LIDAR scanning, geophysical surveys and targeted diamond drilling.
One of the most significant near-term opportunities is the processing of historical stockpiles, which were initially misclassified as waste but have since been confirmed to contain gold mineralization. Recent trenching and bulk sampling returned positive assay results, with recovery tests demonstrating that gold can be efficiently extracted using simple crushing and gravity separation methods. Since the stockpile material is already milled, this initiative could provide a near-term source of revenue while exploration drilling advances.
The primary exploration initiative at Providence is a 4,000-meter core drilling program, targeting previously untested areas near surface, beneath and between the historical stopes. The company has identified high-priority drill targets based on 3D geological modeling and interpretation of compiled data, which suggest that gold-bearing structures extend well beyond the historically mined zones.
Another key aspect of Providence’s exploration strategy is the development of a digital 3D mine model, integrating historical production data, drill results, 3D Lidar surveys and structural interpretations. This modeling enables the team to simulate mineralized zones, predict ore shoot continuity, and optimize future mining scenarios.
Near and Long-term Development Plan Going Forward
In the near-term, the company has identified gold-bearing stockpiles from historical operations that could provide an immediate cash-flow opportunity through simple crushing and gravity-based processing.
In the long-term, Providence remains focused on developing its assets through a phased approach which includes:
- Phase 1 Drilling (2025-2026): Targeting high-grade extensions of previously mined stopes, validating historical resource potential.
- Phase 2 Resource Definition (2025-2026): Expanding the drill program to delineate an NI 43-101 compliant resource, incorporating both high-grade underground targets and bulk-tonnage surface mineralization.
- Preliminary Economic Assessment & Engineering Studies (2026-2027): Evaluating the feasibility of underground mining operations, along with potential processing of the historical stockpiles for early cash-flow generation.
- Permitting & Development (2028+): Advancing toward potential production, leveraging California’s permitting framework and existing infrastructure within the Mother Lode Belt.
Management Team
Ronald A. Coombes - President, CEO & Director
Ronald Coombes brings over 25 years of experience in mineral exploration and project development. He has successfully managed multiple mining ventures, including a molybdenum project that grew from a $1.5 million to $288 million market cap in just 12 months. Throughout his career, Coombes has reviewed and assessed over 100 mining projects across Canada, the US and Mexico, specializing in fundraising, acquisitions and early-stage resource development. He is also a director of Lincoln Mining, which is currently advancing the Pine Grove Gold Deposit in Nevada.
Rodger Young - Chairman, Vice-president & Director
Rodger Young has extensive expertise in international financing, particularly in the natural resources sector. He was the founder and director of a major finance house based in London, specializing in raising capital for mining and resource-based projects. His experience in corporate governance, financial structuring, and investment strategies provides Providence Gold with a strong foundation for securing capital and advancing its projects.
Dr. Lee Groat - Qualified Person & Senior Advisor
Dr. Lee Groat is a renowned geologist and professor at the University of British Columbia. With expertise in structural geology, economic mineral deposits, and exploration strategy, he has contributed significantly to advancing mineral projects globally. His technical leadership ensures Providence Gold’s exploration programs are guided by cutting-edge geological analysis and best industry practices.
