Antilles Gold (ASX:AAU)

Results of Updated Scoping Study for Nueva Sabana Mine, Cuba


Antilles Gold Limited (“Antilles Gold” or the “Company”) (ASX: AAU, OTCQB: ANTMF) is pleased to advise the results of the Updated Scoping Study for the first stage of the proposed Nueva Sabana gold-copper mine in Cuba. The Study has been prepared by the 50% owned Cuban joint venture company, Minera La Victoria SA (“MLV”), which is undertaking the project.

  • The Updated Scoping Study is based on a pit limited to 100m depth which, at a mining rate of 500,000tpa of ore, will result in an initial mine life of 4.8 years.
  • With additional exploration, and a greater mining depth, the project life and NPV could be increased.
  • Metallurgical testwork set out in ATTACHMENT C indicates the mine will initially produce a gold concentrate grading ~57.5g/t Au for around 18 months, followed by a blended copper-gold concentrate with an average grade of ~28.3% Cu, and ~29.8g/t Au.
  • Payables for these concentrates have been received from a major international commodity trader that the joint venture is negotiating with to establish an offtake agreement.
  • The off-take agreement is expected to include a provision for advanced payments for concentrates to assist in the funding of construction costs.
  • The 752ha concession covering the Nueva Sabana oxide deposit also hosts the El Pilar, Gaspar, and Camilo porphyry copper intrusives, and numerous shallow gold targets identified by artisanal mining.
  • The Nueva Sabana deposit has a small gold cap, an underlying copper-gold zone, and a deeper sulphide copper zone with mineralisation open at depth at 150m which could potentially transition into the El Pilar porphyry copper deposit offset to the south.
HIGHLIGHTS OF FINANCIAL ANALYSIS FOR STAGE ONE OF THE NUEVA SABANA MINE:
  • Estimated Operating Profit of ~US$60M from the first 22 months of concentrate production will comfortably permit repayment of the ~US$28.5M project debt before the end of this period.
  • MLV intends to drill the copper mineralisation that continues below the stage one mining depth of 100m with the aim of deepening the Nueva Sabana mine and extending its life.
  • The Revised MRE for Nueva Sabana which is incorporated as ATTACHMENT A in the Study, established approximately 25M lb of 0.75% copper in Inferred Resources within the 50m below the initial mine depth, which is a positive indication of the potential to extend its life.
  • MLV also intends to drill identified oxide gold-copper targets overlying the nearby Gaspar and Camilo porphyry copper deposits to potentially increase resources.
  • Subject to the results of additional drilling, consideration will be given to doubling the mining rate in the copper domain to 1.0Mtpa of ore to increase annual profitability and cash flow.
  • It is possible that the Nueva Sabana mine could be significantly expanded and extended in the future to mine the three porphyry copper deposits located within the mining concession.

Antilles Gold Chairman, Mr Brian Johnson, commented: “The first stage of Nueva Sabana, while relatively small, has an excellent IRR and will deliver significant free cash within a short timeframe.

MLV’s priority at this time is to finalise current negotiations on a concentrate off-take agreement for the project, and to arrange financing for the mine construction.

Antilles Gold’s share of the estimated NPV8 for the first stage of Nueva Sabana is ~A$70M at current metal prices of US$2,600 per oz Au, and US$9,300/t Cu, and an exchange rate of A$1.00 = US$0.66, which is significantly higher than the Company’s current market capitalisation of A$7.5M.

The opportunity to unlock further value for Antilles Gold will occur with the proposed development of the joint venture’s flagship project, the La Demajagua gold-silver-antimony mine, where the Company’s share of NPV8 reported to ASX on 30 March 2023 was ~A$150M, prior to the joint venture’s decision to expand the project to produce gold doré from the mine’s gold arsenopyrite concentrate, and to increase antimony production.

Before the end of 2024, Antilles Gold will contribute the final US$0.4M of the US$15.0M earn-in for its 50% shareholding in the joint venture company, Minera La Victoria (“MLV”), after which the Company’s cash burn will be substantially reduced.”

Click here for the full ASX Release

This article includes content from Antilles Gold (ASX:AAU), licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

AAU:AU
Antilles Gold Limited

Antilles Gold Limited Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Antilles Gold Limited

Antilles Gold Limited


Keep reading...Show less
  Asara Resources Limited

Asara Recommences Exploration Activities at Kada

Asara Resources Limited (ASX: AS1; Asara or Company) is pleased to announce that it has recommenced exploration activities at its flagship asset, the Kada Gold Project in Guinea (Kada).

Keep reading...Show less
  Artemis Resources

High-Grade Gold & Copper Assays at Thorpe Prospect

Artemis Resources Limited (‘Artemis’ or the ‘Company’) (ASX/AIM: ARV) is pleased to provide an update on further exploration undertaken on the 100% owned Karratha Gold Project in the West Pilbara region of Western Australia.

Keep reading...Show less
New Murchison Gold Limited

New Murchison Gold Provides a Mineral Resource Update for the Crown Prince Deposit

New Murchison Gold Limited (ASX: NMG) (“NMG” or the “Company”) is pleased to announce an updated Mineral Resource Estimate (MRE), reported in accordance with the JORC Code, for the Crown Prince Deposit (Crown Prince) at the Company’s flagship Garden Gully Gold Project (Garden Gully) near Meekatharra, Western Australia.

Keep reading...Show less
Mardi Gras mask.

New Orleans Investment Conference Marks 50 Years of Market Insights and Contrarian Wisdom

Taking place a few weeks later than usual — likely to accommodate the US election — this year's New Orleans Investment Conference saw many resource sector analysts, newsletter writers, speculators and contrarians offer insight on the economy, potential market movements and which commodities to watch.

Hosted by Brien Lundin, CEO and president of Jefferson Financial and editor of Gold Newsletter, the New Orleans Investment Conference first launched in 1975 as the brainchild of entrepreneur James Blanchard, a well-known dealer of fine coins and precious metals and the founder of Blanchard and Company.

Blanchard was fondly remembered at the conference's 50th anniversary by presenters and panelists, including popular investor and speculator Rick Rule, proprietor of Rule Investment Media.

Keep reading...Show less
Wooden sign saying "Welcome to Côte d'Ivoire."

Côte d'Ivoire: The Golden Frontier of West African Mining

As global investors seek new frontiers in the precious metals sector, Côte d'Ivoire is rapidly emerging as a high-potential gold region in West Africa. This West African nation, known for its stable political climate and pro-mining regulations, is becoming an increasingly attractive destination for gold exploration companies and investors alike.

Côte d'Ivoire's geological landscape is dotted with significant gold deposits within and nearby, including Resolute Mining’s (ASX:RSG,OTC Pink:RMGGF) renowned Syama deposit in Mali with gold resource of 10.3 million ounces, the Sissingué gold mine, which produces 70,000 to 100,000 ounces of gold per year, and Barrick Gold's (TSX:ABX,NYSE:GOLD) prolific Tongon operation.

These substantial resources are just some of the known deposits that underscore the country's potential to become a major player in the global gold-mining industry.

Keep reading...Show less
Gold bars and Australian dollars.

Rua Gold Acquires Siren Gold's Reefton Assets for AU$22 Million

Siren Gold (ASX:SNG) announced on Tuesday (November 26) that it has completed the sale of its wholly owned subsidiary, Reefton Resources, to Rua Gold's (TSXV:RUA,OTCQQB:NZAUF)wholly owned subsidiary, Reefton Acquisition.

Reefton Resources is the owner of the Reefton project in New Zealand.

The sale will establish Rua Gold as a dominant landholder in the Reefton region, with approximately 1,196 square kilometers of tenements in the historical and past-producing Reefton Goldfields, which produced over 2 million ounces at 15.8 grams per tonne gold.

Keep reading...Show less
Antilles Gold Limited

Antilles Gold Limited Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×