Target Market Determination
May 18, 2023
Antilles Gold Limited
ASX : AAU | OTCQB : ANTMF | FSE: PTJ
EXPLORING MAJOR COPPER DEPOSITS IN CUBA
– funded by the La Demajagua gold mine –
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ASX : AAU | OTCQB : ANTMF | FSE: PTJ
Antilles Gold is an Australian mining company listed on the ASX with exceptional growth potential through participation in major copper projects in Cuba.
The Company has entered into two agreements with the Cuban Government’s mining company, GeoMinera SA, with the exploration of major copper deposits expected to be funded from profits generated by two relatively small gold mines.
The Agreement includes the large El Pilar copper-gold porphyry system in central Cuba where aeromagnetic, ground magnetic, and IP surveys have been interpreted as a cluster of intrusives, the largest of which, El Pilar and Gaspar, present major exploration targets to a depth of +850m.
It also includes three highly prospective concessions, La Cristina, Vega Grande, and Buey Cabón, totaling 53,700 ha within the Sierra Maestra copper belt in south east Cuba along strike to the west from the El Cobre copper mine which has operated since 1540.
An initial drilling program will commence on the El Pilar and Gaspar deposits in May 2023, and be followed by La Cristina.
These copper concessions will then be transferred to a joint venture with GeoMinera with expected majority foreign ownership, to undertake additional exploration, and potential mine developments.
Proposed near term development of the La Demajagua open pit mine on the Isle of Youth in south west Cuba to produce gold, silver and antimony concentrates for 9 years which is expected to be followed by underground operations.
Pre-development stage of the El Pilar gold-copper oxide deposit in central Cuba aimed at a low cap-ex open pit mine to produce gold, and copper-gold concentrates.
Following extensive negotiations, a joint venture was established with GeoMinera in August 2020 to develop an open pit mine on the country’s largest known gold deposit at La Demajagua.
The Company subsequently reviewed the potential of more than 30 previously explored mineral deposits, before nominating four exploration concessions hosting highly prospective copper deposits, for inclusion in a second joint venture.
One concession covering the large El Pilar copper-gold porphyry system has been registered, and included in Antilles Gold’s Exploration Agreement with GeoMinera. The other three are currently being registered prior to inclusion.
It has recently been agreed at Ministerial level to increase Antilles Gold’s shareholding in Minera La Victoria, from 49% to 50% to better reflect the partnership arrangements.
Antilles Gold’s shareholding in the joint venture that will be established to explore, and potentially develop large copper deposits, is expected to be a majority holding in order to encourage future involvement by one of the many major mining companies searching for undeveloped world-class copper deposits.
The joint venture agreement with GeoMinera requires any project that is developed to deposit all loans and sales proceeds in a jointly controlled foreign Bank account.
From this account, funds will be remitted directly to contractors and suppliers, and to service loans, and pay dividends, with the only transfers to Cuba being for local expenses which will reduce country credit risk.
Mining and Environmental Laws are realistic, and the 15% corporate tax rate has been waived for 8 years.
Import duties, withholding tax, and GST are not applicable. Royalties on metal sales are at an industry standard 3%.
Antilles Gold nominates all senior management to the joint venture.
As a first mover, Antilles Gold, has gained access to exciting previously explored copper, gold, and silver deposits through its agreements with GeoMinera, at a minimal cost of entry.
Other than Trafigura’s 49% owned EMINCAR joint venture which commissioned the US$300 million Castellanos base metals mine in 2017, only Antilles Gold is currently investing in new mine developments in Cuba.
Near-term exploration will be focused on a cluster of large copper-gold porphyry deposits within the El Pilar concession in central Cuba, and on copper mineralisation within the La Cristina concession in the south east.
The large, outcropping, copper-gold porphyry system at El Pilar could be a “company maker” if shallow historical drilling results are replicated at depth.
The El Pilar joint venture will be established between subsidiaries of Antilles Gold and GeoMinera during 2023 to continue exploring the porphyry system, and possibly developing a major copper mine in the future. It is anticipated that the
joint venture will be structured with majority foreign ownership to encourage future participation by one of the many major mining companies looking to participate in the exploration of significant copper deposits.
The La Cristina concession is located within the Sierra Maestra copper belt along strike to the west from the El Cobre copper mine which has operated since 1540.
The area incorporates numerous zones of large surficial exposures of porphyry style hydrothermal alteration in a volcano-sedimentary sequence that is intruded by dioritic stocks. The hydrothermal alteration evident at La Cristina is interpreted to be the upper parts of a cluster of exposed porphyry copper-gold-molybdenum systems that remain unexplored by modern techniques.
An open pit gold-silver-antimony mine at La Demajagua on the Isle of Youth in south-west Cuba is expected to be commissioned in early 2025 with estimated annual production of approximately 85,000oz Au equivalent in concentrates containing gold, silver, and antimony, with annual payables of around US$100 million for nine years, and be followed by underground operations.
An open pit mine is planned to be developed on the El Pilar oxide deposit in central Cuba and be commissioned by mid 2025 to produce gold, and copper-gold concentrates.
Preliminary metallurgical test work has indicated an 83% recovery of the oxide gold in a concentrate, and the presence of extensive free milling gold which could be recovered by gravity separation.