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Mako Gold completes $10 million raise as it looks to build on maiden resource through 45,000 metres of drilling

“Due to the recent outstanding results received on the Tchaga Prospect, the company will extend the expected date of its maiden mineral resource estimate as it continues to expand the footprint at the Tchaga Prospect,” managing director Peter Ledwidge said.

Mako Gold Ltd - Mako Gold completes $10M raise as it looks to build on its maiden resource
On site at Mako Gold's Napie Project in Côte d’Ivoire.

Mako Gold Ltd (ASX:MKG) has completed the second tranche of its oversubscribed $10 million placement and commenced a 45,000-metre drill program at its Côte d’Ivoire gold projects.

Mako is advancing its flagship Napié Gold Project covering 296 square kilometres in the West African Birimian Greenstone Belts which hosts more than 70 +1-million-ounce gold deposits.

The company aims to deliver high-grade gold discoveries in the region and the $10 million raised puts it on a sure footing to start a fully funded and aggressive exploration program, including the 45,000-metre drill campaign.

Well funded

Mako has circa $15 million in cash reserves for this program and additional exploration and will continue drilling Gogbala Prospect, while resuming its program at Tchaga once phase 1 at Gogbala is complete.

To fast-track results, Mako is using two assay laboratories, with assays due three to four weeks after being submitted.

As such, there should be a continuous stream of news coming from Mako’s projects over the coming weeks and months.

With a full card of drilling, Mako has extended the delivery date for its maiden resource to include recent positive drill results from the southern extension of Tchaga and recent Gogbala drilling.

“Due to the recent outstanding results received on the Tchaga Prospect, the company will extend the expected date of its maiden mineral resource estimate as it continues to expand the footprint at the Tchaga Prospect,” Mako’s managing director Peter Ledwidge said.

“We look forward to providing assay results shortly from diamond drilling at Tchaga and from reverse circulation drilling at Gogbala.”

$10 million gives Mako a leg up

Mako issued 60,689,600 shares at an issue price of 8 cents per share for gross proceeds of around $4.9 million to complete the second tranche of its recent $10 million capital raising.

Binding commitments for the placement, which was strongly supported by new and existing institutional investors, was first announced on July 8, with Mako announcing it would issue up to 125 million new fully paid ordinary shares at 8 cents per share.

Mako also received cornerstone support of $6.3 million from high-quality North American and European strategic investors including Dundee Goodman Merchant Partners, DELPHI and Sparta AG.

With the settlement of tranche 2, Mako can proceed with few hurdles to navigate.

Mako now has existing cash reserves of $4.55 million, proceeds of $950,000 from the divestment of the Niou Project and the $10 million placement in its pocket.

It is safe to say it is well-funded for future activity at Napie including extending existing high-grade mineralisation and testing multiple high priority regional prospects with an aim to deliver a maiden Mineral Resource Estimate.

Ongoing at Napié will continue through the remainder of 2021 and beyond.

Money raised will also be used for Mako’s maiden drilling program at its Korhogo Project.

“The completion of the second tranche of the $10 million capital raise gives the company a clear runway to execute our aggressive exploration strategy,” Ledwidge said.

“The Board of Directors have approved up to 45,000 metres of drilling which gives the company the green light to continue drilling on the Napié Project and to commence a maiden drilling program on the Korhogo Project.”

45,000 metres of drilling

Mako will shortly start a board-approved 45,000-metre drilling program at its Côte d’lvoire projects, focusing on up to 35,000 metres of reverse circulation (RC), diamond drilling (DD) and aircore (AC) drilling at its flagship Napié project.

Mako currently owns a 51% interest in Napié and could earn up to 75% interest through the delivery of a feasibility study.

The company recently entered into a binding agreement with Perseus Mining to consolidate ownership from 51% to 90%. It entered into a farm-in and joint venture agreement on the Napié Permit with Occidental Gold SARL, a subsidiary of Perseus.

Mako will also undertake a 10,000-metre drilling program at its 100%-owned Korhogo Gold Project, which comprises two permits for 296 square kilometres covering 17 kilometres of faulted greenstone/ granite contact (high-grade gold targets) located within 30 kilometres of Barrick’s operating 4.9-million-ounce Tongon Gold Mine.

This greenstone belt also hosts Montage Gold’s 3.2 million-ounce Kone gold deposit and Endeavour’s 2.7-million-ounce Wahgnion gold mine across the border in Burkina Faso.

Drilling at Korhogo will start once Mako has completed a detailed (100 X 50 metres) soil geochem program which will be done after the end of the rainy season in October.

The AC drill program will commence once Mako has the assay results of the detailed soil sampling program.

Maiden resource extended

Once first phase drilling at Gogbala is complete, Mako will turn its attention to its Tchaga prospect as it looks to extend its mineralised footprint to the south.

Success at Tchaga has enabled Mako to include the results in the upcoming maiden resource.

Mako extended the date of the resource estimate to fit these results in, however could also include some of the drilling results from the Gogbala Prospect.

Quick facts: Mako Gold Ltd

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