Antilles Gold Ltd (ASX:AAU) (OTCMKTS:ANTMF) has completed more than 50% of a 15,000-metre drilling program at La Demajagua gold and silver deposit in Cuba through its 49%-owned joint venture company Minera La Victoria (MLV) SA.
The drilling is progressing on schedule after overcoming delays due to the COVID-19 pandemic with a third diamond drill rig expected on-site next month.
So far, Antilles is pleased with the quality and domain expertise demonstrated by Cuban geologists and drill crews, who are working under the supervision of the geologist consultants appointed by the company.
The consultant has advised that extensive zones of mineralisation are evident in a number of the drill cores that have been logged.
Initial JORC resource
Sample preparation is being undertaken in Cuba with around 750 samples prepared to date.
A laboratory in Toronto is undertaking analysis of the samples, with results expected to be available progressively from next month.
When the drilling program is completed in August 2021 the results, together with data from 50,000 metres of the previous drilling by Canadian exploration companies will permit the establishment of initial JORC resources for the ore body.
Planned flotation test work
This program will also provide sufficient drill core to allow flotation test work to be undertaken at Core Resource’s laboratory in Brisbane to produce two distinct types of concentrate.
The first will be provided as samples to smelters in China and Russia for their own testing in advance of negotiating offtake agreements and the second will be processed through Core Resource’s Albion test facilities to establish likely gold recoveries should MLV ultimately choose to build an Albion/CIL plant to extract gold and silver from the concentrate, rather than selling it to smelters at a discounted value for the contained precious metal.
This drilling program will be expanded to around 25,000 metres in early 2022 to increase the resource classifications and provide data for the production of hydrology and geotechnical reports.
The program will also help in the preparation of detailed mine plans for MLV’s proposed 800,000 tonnes per annum open-pit mine and associated concentrate production and form part of the bankable feasibility study (BFS) for the La Demajagua Project.
This BFS is expected to be completed in time for a development decision in the fourth quarter of 2022.