Antilles Gold holds 49% of Cuban registered company, Minera La Victoria SA (“MLV”), which is currently carrying out feasibility studies to confirm the viability of developing an 800,000 tpa open pit mine at La Demajagua to produce approximately 60,000 tpa of refractory concentrate.
The planned 6 year mine life is expected to be followed by a 10 year underground operation at a reduced production rate.
The Cuban Government’s mining company, GeoMinera SA, holds 51% of MLV.
As part of its due diligence process before entering into the La Demajagua Joint Venture, Antilles Gold had access to data from 50,000m of historical drilling undertaken primarily by reputable Canadian mining companies.
This data was used by Antilles Gold’s consultants to establish non JORC compliant resources for the La Demajagua ore body and a basic mine plan.
The Company has undertaken a Preliminary Economic Assessment (“PEA”) of the capital and operating costs to produce 60,000 tpa of refractory concentrate that indicated attractive commercial results.
Based on testwork by a major Canadian metallurgical research group, the grade of the La Demajagua concentrate is expected to be in the order of 48g/t Au and 380g/t Ag with a relatively high arsenic content.
For the purposes of the PEA it was assumed the La Demajagua concentrate will have a value similar to that advised by a Chinese smelting company permitted to import and process concentrate with high arsenic content.