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Antilles Gold Limited (“Antilles Gold” or the “Company”) (ASX: AAU, OTCQB: ANTMF) is pleased to report a revised Mineral Resource Estimate (‘MRE’) for the first stage of the proposed Nueva Sabana copper-gold mine in central Cuba. The updated MRE follows completion of a 2,000m in-fill drilling program.
Refer attached Revised MRE by Mining Associates Pty Ltd and JORC Edition 2012 Table 1
- The majority of the Inferred Resources in the MRE reported on 6 March 2024 have now been elevated to Indicated Resources.
- Importantly, the outcropping gold cap that will be mined at the commencement of operations now contains Indicated Resources of 654,000t of oxide material at 2.81g/t Au (59,000 oz Au) – an increase of approximately 40%.
- The MRE is based on relatively shallow drilling to 150m below surface – 15,000m undertaken by our 50:50 joint venture mining company, Minera La Victoria, which is developing the Nueva Sabana mine, and 20,000m of historic drilling by Canadian companies.
- The first stage of the Nueva Sabana mine is expected to produce a gold concentrate from the upper gold domain for 15 months and be followed by a copper concentrate with gold credits for around 3 years.
- With additional exploration, which is likely to be funded from future cash flows, the mine life is expected to increase substantially, and the copper oxide deposit could transition into the underlying El Pilar porphyry copper deposit. This deposit has been the subject of geophysical and induced polarisation surveys and ~3,500m of shallow drilling.
- A revised optimised pit to 100m depth, mining schedule and JORC Reserve calculations are currently being prepared by Mining Associates Pty Ltd after which the financial model for the first four years of the project will be updated, and negotiations on a concentrate off-take agreement and project financing finalised.
- It is anticipated that the US$25 million of financing required for Nueva Sabana’s mine construction will be able to be repaid within a very short time frame based on the current gold price.
- Some of the proceeds from the $1.6 million share issue on 18 September 2024 are being applied to detailed engineering for the concentrator, and to construction of a ~1.6km access road from the Cuban central highway to the mine site which will allow the project to be development-ready in December 2024.
- The Nueva Sabana mine is important for Antilles’ Joint Venture as it will establish a positive cash flow and allow it to move forward on the development of the La Demajagua gold-silver-antimony mine which is looking compelling based on the strength of the gold price and the anticipated increase in production and pricing of antimony (refer ASX announcement dated 13 September 2024).
Comment
Antilles Chairman Brian Johnson commented: “Nueva Sabana’s MRE for the first stage of the proposed mine has increased in confidence and size and the outcropping high grade gold cap will underpin a low-cost, fast start-up operation. The updated MRE will help to further advance financing negotiations which to date have progressed favourably. Nueva Sabana holds considerable unlocked value with the current MRE based on shallow drilling to only 150 metres. As such, we anticipate a much longer life operation to what has been modelled. Beyond this, the La Demajagua mine is generating increased interest based on the strengthening antimony price and we are intent on capitalising on the project’s growing appeal. I look forward to keeping shareholders updated on progress.”
Click here for the full ASX Release
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