La Demajagua Open Pit Mine

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 late 2025 with commissioning in mid 2027.

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 7 July 2023.

Mineral Resource
Estimate

The Mineral Resource Estimate for La Demajagua Preliminary Shell at 0.8 g/t Au cut off.

ClassificationTonnes
(Mt)
Au
(g/t)
Au
(ounces)
Ag
(g/t)
Ag
(ounces)
Sb
(%)
AuEq.
(g/t)
AuEq.
(ounces)
Indicated6.572.80591,00029.96,313,0000.413.31700,000
Inferred3.01.9180,000191,840,0000.182.2205,000
Total9.552.5771,00026.68,155,0000.332.95905,000

The La Demajagua gold-silver-antimony deposit is being developed initially as an open pit mine to produce gold doré, and a gold-silver-antimony concentrate, and is expected to be followed by underground operations.

900 ha mining concession on Isle of Youth, 60nm from mainland – mine site 35km from port via sealed roads, connected to water, electricity, and fiber optic cable.

Mineral Resource Estimate (“MRE”) 905,000 oz Au Eq for open pit Mining of ~815,000 tpa ore to produce two concentrates from open pit for 9 year LoM – ~50,000tpa of gold-arsenopyrite concentrate, and ~10,00tpa of gold-silver-antimony concentrate (49.1g/t Au, 2,000g/t Ag, and 46% Sb).

Project has recently been expanded to include 50,000tpa two-stage fluidized-bed roaster, an associated CIL circuit, and an antimony precipitation circuit in a concentrate processing facility to process the gold arsenopyrite concentrate, and produce ~50,000oz Au per year in a doré, and ~10,500tpa of a gold, silver, antimony concentrate containing ~4,700tpa of antimony.

Chinese engineering group, BGRIMM Technology Group, is undertaking metallurgical test work and preliminary engineering design before presenting a turnkey proposal for supply of the concentrate processing facility.

Estimated project development cost ~US$150M.


Current shareholders equity – US$27M expected to be increased through participation by a major mining group in the joint venture.

Proposed project financing from equity contributed by an additional shareholder in the joint venture, and deferred payments to equipment suppliers.

BGRIMM 200tpd Two-Stage Fluidized-Bed Roaster

Scoping Study

A revised Scoping Study for the expanded project is expected to be completed in July 2024 and demonstrate significantly increased profits and NPV from those reported to ASX on 30 March 2023, which were based on production and sale of concentrates