Open Pit Mine – La Demajagua

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.

Mineral Resource
Estimate

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

Resource CategoryTonnes (Mt)Au Grade (g/t)Contained Au (oz)Ag Grade (g/t)Contained Ag (oz)Sb Grade (%)Contained Sb (Tonnes)
Indicated5.322.87490,00032.15,490,0000.4223,000
Indicated2.12.0130,000171,132,0000.163,000
Total7.42.63620,00027.96,620,0000.3526,000

Site Location
And Infrastructure

  • 900ha mining concession on Isle of Youth 60nm from mainland Cuba.
  • Accessible from the port city of Nueva
    Gerona by 35km paved highway.
  • Connected to water, electricity, and fibre optic cable.

Updated
Scoping Study

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 PROJECTA$20M
ANTILLES GOLD’S SHARE OF LoM CASH SURPLUS (A$1.00 =US$0.67)A$265M
ANTILLES GOLD’S SHARE OF NPV8A$146M
ANTILLES GOLD’S IRR ON INVESTMENT80%
Project Development CostUS$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 SurplusUS$356M
Project NPV8US$196M
Project IRR33%

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.