Antilles Gold Ltd (ASX:AAU, OTCQB:ANTMF) has established an exploration target range for its El Pilar gold-copper oxide deposit in Central Cuba based on historical data analysed by Canadian mining consultants, BBA International Inc.
The El Pilar oxide deposit overlays a potentially significant copper-gold porphyry deposit – one of three within an extensive porphyry system that is included in the company’s exploration agreement with the Cuban Government’s mining company, GeoMinera.
Moving forward, Antilles will kick off a 14,000-metre drilling program at El Pilar later this month aimed at updating the conceptual exploration target into a resource, with assays expected to be delivered in September.
The entire funding for an open-pit mine at El Pilar could potentially come from the surplus cash flow expected to be generated by the joint venture’s first project, the La Demajagua gold-silver open-pit mine, where commissioning is planned for mid-2024.
Project significance
Antilles executive chairman Brian Johnson said that the development of an open-pit mine at El Pilar with significant metal value in a small tonnage would be an important step in generating growth in cash flow and profits within the mining joint venture.
The joint venture now has the prospect of developing three mid-sized projects within the next four years - La Demajagua gold-silver sulphide deposit, El Pilar gold-copper oxide deposit and Antonio copper-zinc sulphide deposit.
However, he said the real prize could be the large El Pilar copper-gold porphyry deposit, and if drilling at depth replicated shallow historic drilling of the outcropping deposit, the porphyry system could be a “company maker”.
Looking ahead, the initial drilling results in September 2022 will be of great importance in determining the company’s future direction.
About Antilles
Antilles 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.
The company is comfortable operating under the applicable law on Foreign Investment in Cuba which protects minority shareholdings, and the realistic Mining and Environmental regulations, and has been granted a generous fiscal regime by the Government which is supportive of its objectives.