Antilles Gold has delivered a 30 per cent increase in gold, antimony, and silver to La Demajagua, raising the resource to over 900,000 ounces of gold equivalent as it looks toward the Definitive Feasibility Study for a new open pit Cuban Mine.
Recoveries and grades to date have indicated that at current prices, revenue will exceed the $100 million dollars per year previously forecast, and the Life of Mine could now be extended from nine to 11 years.
At a gold price of US$1800 per ounce and current exchange rates, a revised scoping study now indicates that Antilles’ share of the cash flow would average A$45 million per year – a heady return after committing only A$20 million for its half share in the joint venture.
Negotiations have begun on advance payments for concentrate and deferred payments to Chinese suppliers, and the Minera La Victoria SA joint venture aims to begin infrastructure construction early next year, with mine commissioning earmarked for mid-way through 2025.
And there are more results to come, with the DFS put temporarily on hold while Antilles await further assays for critical mineral antimony and complete metallurgical test work directed at optimising recoveries and metal grades for two high-value concentrate products.
La Demajagua is one of two mines which could provide significant near-term cash flow to Antilles, with more exceptional results from the El Pilar gold-copper oxide deposit supporting creation of a low capex mine at Nueva Sabana.
Negotiations are slated to soon begin with the Cuban authorities to establish a new copper joint venture and draft agreements to develop mining operations at both La Demajagua and Nueva Sabana as the island nation opens up to foreign investment.
The partners intend to keep working on future mine developments, with part of the expected profits set to fund an extensive exploration program over high priority targets.