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The joint venture company, Minera La Victoria SA, proposes to develop an open pit mine at the La Demajagua sulphide gold-silver deposit on the Isle of Youth in south west Cuba with construction planned to commence in October 2023 with commissioning in March 2025.
The ore body has been subjected to 50,000m of historic drilling by Canadian companies and 28,000m of recent drilling by the joint venture.
JORC Resources for the proposed open pit were updated by Western Australian mining consultants, Cube Consulting, and reported to ASX on 11 April 2023.
The Mineral Resource Estimate for La Demajagua Preliminary Shell at 0.8 g/t Au cut off.
| Resource Category | Tonnes (Mt) | Au Grade (g/t) | Contained Au (oz) | Ag Grade (g/t) | Contained Ag (oz) | Sb Grade (%) | Contained Sb (Tonnes) |
|---|---|---|---|---|---|---|---|
| Indicated | 5.32 | 2.87 | 490,000 | 32.1 | 5,490,000 | 0.42 | 23,000 |
| Indicated | 2.1 | 2.0 | 130,000 | 17 | 1,132,000 | 0.16 | 3,000 |
| Total | 7.4 | 2.63 | 620,000 | 27.9 | 6,620,000 | 0.35 | 26,000 |
The Results from an updated Scoping Study for the La Demajagua mine was advised to the ASX on 30 March 2023.
SUMMARY OF RESULTS OF SCOPING STUDY
| ANTILLES GOLD’S EQUITY CONTRIBUTION TO PROJECT | A$20M |
|---|---|
| ANTILLES GOLD’S SHARE OF LoM CASH SURPLUS (A$1.00 =US$0.67) | A$265M |
| ANTILLES GOLD’S SHARE OF NPV8 | A$146M |
| ANTILLES GOLD’S IRR ON INVESTMENT | 80% |
| Project Development Cost | US$86M |
| Life of Mine (“LoM”) | 9 years |
| LoM Net Concentrate Sales (US$1,800/oz Au, US$22/oz Ag, US$13,000/t Sb) | US$880M |
| LoM Operating Costs (including Government charges) | US$405M |
| LoM Profit After Tax (15% tax rate waived for 8 years) | US$342M |
| LoM Cash Surplus | US$356M |
| Project NPV8 | US$196M |
| Project IRR | 33% |
Antilles Gold is obliged to use its best endeavours to arrange third party financing of approximately US$70 million for the mine development and expects to be able to do so with a combination of deferred payment terms from suppliers of the concentrator, a 10 Mw power station, and heavy mining equipment, together with advances from purchasers of concentrate, and project loans.