Antilles Gold Ltd (ASX:AAU, OTCQB:ANTMF) has started discussions for a proposed offtake agreement with a major international metals trader for gold-silver sulphide concentrate expected to be produced at the La Demajagua open pit mine in Cuba.
Negotiations will progress in parallel with the company’s definitive feasibility study (DFS), which is due to be finished at the end of 2022 and the terms will form part of the DFS.
The trading company and mine developer is Minera La Victoria SA, in which Antilles Gold has a 49% shareholding.
The companies have a Memorandum of Understanding in place, with an agreed timetable.
Production slated for 2024
The open pit mine is planned to annual produce 70,000 tonnes of concentrate containing approximately 100,000 gold equivalent ounces for eight years, starting in July 2024.
Results of the initial scoping study for the proposed La Demajagua development were reported in February this year and will be updated in September 2022 after indicative concentrate pricing is received.
The positive impact of the increased JORC resource reported on June 28, 2022, which estimated an additional 188,000 ounces of contained gold, and the proposed extension of the mine life from 6 to 8 years will be included in the revised study.
Read: Antilles Gold delivers 25% resource increase at La Demajagua gold-silver deposit
“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,” Antilles Gold executive chairman Brian Johnson said.