Antilles Gold Limited (ASX: AAU, OTCQB: ANTMF) has completed a robust Scoping Study for the proposed development of the La Demajagua open pit gold/silver mine in Cuba.
The release of the Study results follows the recent establishment of Maiden JORC Resources for the proposed La Demajagua open pit gold/silver mine, and receipt of the preliminary mine plan, material scheduling, and ore grades from mining engineers, Cube Consulting, together with results from initial metallurgical testwork.
The mine is expected to be developed in the near term in a 49:51% joint venture with the Cuban Government’s mining company, GeoMinera SA, with the objective of producing a bulk gold/silver concentrate for sale to trading companies, or foreign smelters .
Highlights
- Antilles Gold’s Equity Contribution to Project (A$1.00 = US$0.72) A$18.0 million
- Antilles Gold’s Share of LoM Cash Surplus A$221.4 million
- Antilles Gold’s Share of Average Annual Profits A$35 million
- Antilles Gold’s Pay Back on Investment (from Commissioning) eight months
- Project Development Cost US$75 million Life of Mine (LoM) six years
- Annual Metal Production (75.0 oz Ag = 1.0 oz Au) 100,600 oz Au equivalent
- LoM Sales Revenue (@ US$1,650/oz Au, US$22/oz Ag, after processing costs, and discount to buyer) US$700.5 million
- LoM Production Costs (including royalties, financing, depreciation) US$320.7 million
- LoM Concentrate Shipping Costs US$52.7 million
- LoM Profit (after taxation of US$12.5 million) US$312.4 million
- LoM Cash Surplus US$325.4 million Project NPV8 US$218.1 million Project IRR 43.7 %
Executive Chairman, Brian Johnson, said the results of the Scoping Study were particularly encouraging and demonstrate the excellent return that Antilles Gold can expect to receive on its relatively low equity contribution to the project.
“The returns from the La Demajagua project will increase with cash flow from the underground operation planned to follow the open pit mining for approximately 10 years.
“The results also indicate that the joint venture company’s first project could become the catalyst for realisation of its aim of developing a series of mines in order to progressively establish itself as a substantial mining company in Cuba.
“The joint venture’s objective is to apply part of the surplus cash generated by the La Demagaua project to fund future developments, and in doing so achieve organic growth while minimising future equity contributions.”
Mr Johnson added that shareholders could look forward to exciting news this year from the Company’s recently formed exploration group in Cuba as it moves forward with a series of geophysical surveys and drilling programmes on previously explored deposits that are included in Antilles Gold’s global Exploration Agreement with GeoMinera.
“The pipeline of properties with development potential that have been made available to the joint venture, including La Demajagua, presents Antilles Gold with a unique opportunity for future growth.”
For further information please visit: https://antillesgold.net/
