A review of geological data from extensive historic exploration by a Canadian mining company in the 1990’s has raised Antilles Gold’s (ASX:AAU) confidence in the potential of developing a second Cuban mining opportunity.
Working a joint venture with the Cuban Government’s mining company, GeoMinera, Antilles believes it may be able to develop a small but highly profitable open pit mine to produce copper and zinc concentrates with silver credits at the Antonio polymetallic deposit in Central Cuba.
Antonio is one of four copper-zinc-silver mines that were operated by a Russian mining company before their abandonment following the dissolution of the Soviet Union, and withdrawal of support for Cuba around 1989. The four mines and 16 identified mineralised zones lie within the 40km long New Horizons VMS style polymetallic mineral belt near Santa Clara, which is included in the Company’s Exploration Agreement with GeoMinera.
In June 2018, Canadian mining consultants, Roscoe Postle Associates Inc (RPA) produced an Inferred Mineral Estimate for the open pit potential at Antonio.
At current metal values of US$4.10/lb Cu, US$1.60/lb Zn, and US$21.50/oz Ag, the inground value of the Inferred Resource approximates US$525 million rendering it a significant development prospect for the Company.
Preliminary metallurgical testwork on cores from a drilling programme at Antonio is scheduled to commence in September 2022 and will provide an indication of metal recoveries, grades in concentrates, and potential smelter payables on a delivered basis.
Antilles Gold, Executive Chairman, Brian Johnson, said the relatively small Inferred Resource of 2.25 million tonnes with open pit potential could possibly be supplemented with ore from pits developed on other copper-zinc deposits identified within the New Horizons mineral belt.
The proposed first stage project at Antionio is expected to involve a low cost development of between US$25 million and US$30 million. Potentially, development could be undertaken by the joint venture mining company in 2024-25 and be fully funded from anticipated surplus cash flow from the La Demajagua gold-silver mine which is expected to be commissioned in mid-2024,
Mr Johnson said the next six months would underscore the growth potential of the company’s joint venture with GeoMinera, with completion of the Definitve Feasibility Study for the Las Lagunas gold-silver open pit mine expected to be completed in November 2022, and with drilling results from the major El Pilar copper-gold porphyry deposit commencing in September 2022, and for the Antionio copper-zinc deposit in December 2022.
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