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- Antilles Gold (AAU) sees a 25 per cent increase in resources at the La Demajagua gold-silver deposit in Cuba from the revised mineral resource estimate by Cube Consulting
- The MRE now sits at 10.3 million tonnes at 2.74 grams per tonne (g/t) gold at 908,000 contained ounces and 29.3g/t silver at 9.7 million contained ounces
- Results from the MRE were based on data from 50,000 metres of historic drilling and assays received to date from about 90 per cent of the 28,000 metres of cored drilling
- The MRE will be finalised after all assays are received next month
- AAU shares are up 4.69 per cent to trade at 6.7 cents per share at 1:45 pm AEST
Antilles Gold (AAU) has seen a 25 per cent increase in resources at the La Demajagua gold-silver deposit in Cuba.
The mineral resource estimate (MRE) was revised by Western Australia mining consultants, Cube Consulting.
The MRE now sits at 10.3 million tonnes at 2.74 grams per tonne (g/t) gold at 908,000 contained ounces and 29.3g/t silver at 9.7 million contained ounces.
Results from the MRE were based on data from 50,000 metres of historic drilling and assays received to date from about 90 per cent of the 28,000 metres of cored drilling.
Antilles said the additional estimated 2.6 million tonnes within the revised indicated and inferred resources should allow the mine life of the proposed open pit operation to be extended from six to eight years.
The MRE will be finalised after all assays are received next month.
Executive Chairman Brian Johnson said that any increased life of the La Demajagua open pit mine will assist the company’s joint venture with Cuban mining company, GeoMinera, to arrange project finance.
Antilles has commenced discussions with financiers that are not impacted by US sanctions and has allowed 12 months to have finance in place.
“Approximately US$15 million (A$21 million) of the US$65 million of third-party funding that will be required for the La Demajagua mine may be provided as credit by the Chinese suppliers of the project concentrator, and the heavy mining equipment, backed by the China Exim Bank or insurance company, Sinosure,” the company explained.
Mr Johnson said that he was confident that a project loan of US$35 million will be able to be arranged for the joint venture, where the lender will be repaid from a proportion of the proceeds from concentrate sales under a life of mine off-take agreement.
Antilles is expecting the definitive feasibility study for the proposed open pit mine to be completed in November, with mine infrastructure planned to be undertaken in the first half of 2023.
On the market, AAU shares were up 4.69 per cent and trading at 6.7 cents at 1:45 pm AEST.
