Antilles Gold Limited (ASX: AAU) has commenced negotiations with a major international metals trader have commenced for a proposed off-take agreement for the gold-silver sulphide concentrate expected to be produced at the La Demajagua open pit mine in Cuba.
The objectives of the trading company and the mine developer, Minera La Victoria SA (MLV), in which Antilles Gold has a 49% shareholding, have been set out in a Memorandum of Understanding.
Negotiations on the terms of the off-take agreement will progress in accordance with an agreed timetable with the intention of both parties for the agreement to be formalised in time for inclusion in the Definitive Feasibility Study for the proposed La Demajagua open pit mine.
The open pit mine is planned to produce 70,000 tpa of concentrate containing approximately 100,000 oz Au equivalent for eight years, commencing July 2024.
The Study will be updated in September 2022 after indicative concentrate pricing is received. The positive impact of the increased JORC Resource reported in late June 2022 which estimated an additional 188,000 oz of contained gold, and the proposed extension of the mine-life from six to eight years will be included in the revised Study.
“The commencement of negotiations for concentrate sales with one of the world’s largest traders of metal concentrates, is a major step forward in the development of the La Demajagua open pit mine in Cuba,” Executive Chairman, Brian Johnson, said.
Antilles Gold’s strategy is to participate in the successive development of previously explored gold, copper, and zinc deposits in mineral rich Cuba.
The company is at the forefront of the emerging mining sector in Cuba and expects to be involved in the development of a number of projects through its 49:51 mining joint venture with the Cuban Government’s mining company, GeoMinera SA.
For further information please visit: https://antillesgold.net/
