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Antilles Gold Limited (“Antilles Gold” or the “Company”) (ASX Code: AAU, OTCQB: ANTMF, FSE Code: PTJ) is pleased to provide assays from the latest cored drill holes into the El Pilar oxide deposit in central Cuba which, together with previously reported results, reinforce the prospect of developing the proposed Nueva Sabana gold-copper mine.
EL PILAR OXIDE CONCESSION (752 ha)
- The current 7,000m program, together with 1,800m drilled last year, and 24,000m of historic drilling are aimed at establishing the Mineral Resource Estimate ("MRE") for the Nueva Sabana mine for the production of gold, and copper-gold concentrates.
- A total of 24 holes (3,701m) have been drilled by the Company to date, and assays from the latest 5 holes are included in this announcement.
- The collective results support the concept of developing a low cap-ex open pit mine to establish an early cash flow.
HIGHLIGHTS FROM 24 CORED DRILL HOLES
Gold Domain
Copper Domain
Sampling Techniques and Data are set out in the JORC Code 2012 Edition Template attached.
- The gold zones within in the El Pilar oxide deposit are well defined, and the copper zones are increasing in volume both laterally and vertically with continuing exploration, and are expected to project into the underlying porphyry sulphides.
- Metallurgical test work by Blue Coast Research Laboratories in Vancouver has indicated a gold recovery of 85% from a simple rougher flotation circuit, and a concentrate grade of 53.1g/t Au from a 2.11g/t Au head grade.
The development of the Nueva Sabana mine for the El Pilar oxide deposit will benefit from the following;
- Minesite adjacent to HT power mains, water supply, and rail and highway access to the port of Mariel for export of concentrates.
- Flat, unoccupied site close to towns for sourcing workers.
- Resultant low infrastructure costs.
- Initial production of readily saleable gold concentrate from the upper ~50m gold domain.
- Production of in-demand copper-gold concentrate to follow from the lower copper domain, and possibly the underlying copper porphyry halo.
- Flotation circuit achieving excellent recoveries for both gold and copper in current metallurgical test work.
- Mining equipment available from international supplier on a dry-hire basis.
- Estimated development cost of less than US$20 million likely to be financed by concentrate buyer.
- Project could be development ready March 2024, and constructed at the same time as the proposed La Demajagua gold, antimony, silver mine.
The costs of drilling, and other pre-development activities for the proposed Nueva Sabana mine will be credited as part of a US$1.5 million loan from Antilles Gold to the joint venture company, Minera La Victoria SA, which intends to develop the mine.
A US$1.5 million loan has also been provided to Minera La Victoria by the Cuban Government's mining company, GeoMinera SA, resulting from its transfer of the El Pilar oxide concession to the 50:50 joint venture for this amount.
Mr Brian Johnson, Executive Chairman of Antilles Gold, said that the Company would produce an Exploration Target Range for the oxide deposit as soon as possible to provide an indication of the potential size of the Nueva Sabana project, in advance of establishing the MRE.
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