Antilles Gold Ltd (ASX:AAU, OTCQB:ANTMF)’s partner in Cuba, GeoMinera SA, has added two concessions covering the New Horizons VMS style polymetallic mineral belt in central Cuba to the Los Llanos exploration agreement.
This is the first step in a potential future mine development.
Polymetallic mineral belt covering four mines
The two concessions total 31,700 hectares and cover an entire 40-kilometre-long polymetallic mineral belt that includes four mines: Antonio, San Fernando, Santa Rosa, and Los Cerros.
It includes previous production of copper-zinc-gold-argon concentrates, and 16 additional mineralised exploration targets, some of which are gold and silver rich.
Geological data from the New Horizons concessions made available for Antilles Gold to review includes:
- maps;
- soil and stream sampling (27,000);
- rock samples;
- ground and airborne geophysical surveys;
- 766 cored drill holes (68,400 metres);
- 5,392 assays; and
- historic mine plans.
In addition, a Canadian technical report on the project published by Toronto-based consultants, Roscoe Postle Associates Inc (RPA), reported that “the project is at the advanced exploration stage and the considerable historical drilling and past production demonstrate that significant copper-zinc-silver-gold mineralisation is present on the property”.
“Substantial” open pit mining potential
The New Horizons polymetallic deposits, together with the Ciego de Avila major porphyry copper-gold system, and the large, shallow Golden Hills VMS copper gold deposits provides Antilles with access to three significant projects, all of which have the potential for substantial open pit mining operations.
Antilles Gold will focus initially on the El Pilar copper-gold porphyry deposit within the Ciego de Avila concession, followed by the Antonio and other polymetallic deposits in the New Horizons concession.
The deposits are 150 kilometres apart in central Cuba, within 100 kilometres of ports suitable for concentrate export.
Both the New Horizons and El Pilar deposits appear to have the potential to produce concentrates from open pit operations, which could be expanded by developing additional satellite pits.
Looking ahead
A widespread 2,000-metre cored drilling program to a vertical depth of 250 metres will be conducted at El Pilar in June-July 2022 and be followed by a similar program at Antonio.
A further 12,000 metres of drilling on the El Pilar deposit, and associated metallurgical test work, will commence in the fourth quarter of 2022 with the aim of establishing initial JORC resources and a scoping study for El Pilar by mid-2023.
To fund the initial exploration and studies on the various deposits encompassed by the Los Llanos Project, Antilles Gold is considering issuing a Redeemable Convertible Note for US$5 million that would be drawn down progressively over the next two years
This should minimise shareholder dilution if the company’s share price increases with progress on the La Demajagua mine development and the potential of the El Pilar, Antonio and other deposits is confirmed.
Executive chairman of Antilles Gold Brian Johnson said the company was now in a great position to pursue growth in the value of its investment in the joint venture mining company in Cuba.
Written by Duncan Bailey.