Antilles Gold: High Grade Gold & Copper Assays at El Pilar, Cuba - Justify Drilling Program in Q1 & Q2 2023
15 December 2022 - Antilles Gold Limited (“Antilles Gold” or the “Company”) (ASX Code: AAU, FSE Code: PTJ, OTCQB: ANTMF) advises that it has received, and reported in the attached Data, all results from its recent 1800m drilling program at El Pilar in central Cuba which was aimed primarily at validating 28,000m of historic drilling on the outcropping gold-copper oxide deposit.
The very encouraging results justify proceeding with a 10,000m cored drilling program to establish the deposit’s JORC Resources.
In addition to the outstanding intercepts highlighted below for both gold and copper in the 65m to 75m deep oxide deposit, one of the drillholes (PDH 004A) penetrated 134m from below the upper gold domain through the lower copper domain, and into an underlying sulphide zone with an average grade over this length of 1.23% Cu, and was open at depth.
The Company’s Exploration Director has advised that this hole’s intersection of the sulphide mineralisation indicates a porphyry system that is the source of all metals in the overlying oxide deposit, and has the potential for discovery of a major copper-gold deposit.
HIGHLIGHTS
Gold Oxide Zone
- Hole PDH-001 20.0m at 2.87 g/t Au from surface (including 3.0m at 13.81 g/t)
- Hole PDH-001A 13.4m at 3.53 g/t Au from 14.3m
- Hole PDH-002 53.5m at 10.92 g/t Au from 12.0m (incl 18.4m at 14.00 g/t from 45.0m)
- Hole PDH-003A 18.0m at 2.00 g/t Au from 4.0m
Copper Oxide Zone
- Hole PDH-002 30.4m at 0.55% Cu from 49.5m (incl 8.0m at 1.39% Cu from 53.5m)
- Hole PDH-004A 18.5m at 5.52% Cu from 59.0m
- Hole PDH-005 18.0m at 1.08% Cu from 32.5m (incl 3.8m at 3.83% Cu from 38.5m)
The assays are considered to be preliminary as they were undertaken at the Cuban Government’s LACEMI (Laboratorio Central de Minerales) laboratory in Havana which though capable and with modern equipment, is not certified. All assays will be replicated at SGS’s laboratory in Canada within the next four to six weeks. Some of the assays have been previously advised to ASX – refer website www.antillesgold.net.
Sampling Techniques and Data are set out in the JORC Code 2012 Edition Template attached.
The Company has engaged an experienced drilling contractor to undertake the program on the oxide deposit, which will be suspended at the beginning of March 2023 to drill 5 700m cored holes into the sulphide deposit after results from ground magnetics, and IP surveys allow hole locations to be determined. The contractor will then complete the oxide drilling.
In order to progress the possible development of a low cap-ex mine on the El Pilar oxide deposit;
- The Government is currently excising an area nominated by Antilles Gold from the 18,000ha El Pilar concession held within the Company’s Exploration Agreement with GeoMinera to create a new concession for oxide ore, with mining to be restricted to a depth of 100m.
- The Government will then propose a value for the new concession as a basis for negotiations with Antilles Gold to determine the amount the Company will contribute for pre-development activities to earn 49% ownership of the concession.
- The earn-in amount is expected to be relatively low as the concession’s market value will only emerge when JORC Resources and a Scoping Study have been completed for the deposit in approximately 9 months.
- Antilles Gold has requested that the new oxide concession be transferred to the existing joint venture company, Minera La Victoria SA (“MLV”) for development.
- This will obviate the requirement for a new joint venture to be negotiated, which would otherwise be time-consuming.
- The gold and copper concentrates to be produced from the oxide deposit are expected to have low levels of contaminants, and will be sold into a market with strong demand for such products.
- Early discussions with international concentrate traders have indicated that buyers will support project financing.
With respect to the underlying El Pilar porphyry copper-gold deposit, and the adjacent Gaspar copper-molybdenum deposit;
- These deposits will also be incorporated in a new concession with mining permitted below the oxide deposit.
- The value of the porphyry system will be negotiated based on results from the upcoming 5 hole drilling program into the sulphide zone, and is also expected to be a relatively low amount with extensive future drilling required to establish its commercial potential.
- The porphyry concession will be transferred to a new joint venture between Antilles Gold and GeoMinera, and the Company will request that the level of foreign ownership be increased from the current industry maximum of 49% which. If approved, this would improve the prospect of attracting future participation of a major mining group in what could be a significant project.
Antilles Gold’s ‘at-risk’ expenditure on its initial review of the potential of the El Pilar deposit is not expected to exceed US$2.5 million, and will be spread over the next six to nine months in advance of the new concessions being transferred to joint ventures. Any following expenditure will be in the form of contributions for shareholdings, or commercial loans to projects, and be applied to pre-development activities.
The initial ‘at-risk’ expenditure on any deposit included in the Exploration Agreement will also be converted to a commercial loan from the Company to the relevant joint venture if the development of the deposit proceeds.
Capital Raising
Mr Brian Johnson, Executive Chairman of Antilles Gold said “it is disappointing to have to undertake the current issue of shares at a depressed share price, but it is important to have funding available to maintain the momentum of activities in Cuba including the progress of its exploration program, and to reinforce its relationship with GeoMinera, and Cuban authorities.
On completion of the current raising, the Company’s activities in Cuba will be fully funded through to July 2023, and in the interim period will be working with a supportive London based Merchant Bank, and specific mining companies with operations in Latin America, to arrange funding for exploration activities in the second half of 2023, and for 2024, with the aim of minimising, or eliminating, further near-term dilution.”
END
This announcement has been authorised by the Board of Antilles Gold Limited.
For further information, please contact:
Brian Johnson,
Executive Chairman,
Antilles Gold Limited
T: +61 (02) 4861 1740
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ABOUT ANTILLES GOLD LIMITED:
- Antilles Gold’s strategy is to participate in the successive development of previously explored gold, silver, 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 near-term project of the joint venture company, Minera La Victoria SA, is the proposed development of the La Demajagua gold-silver open pit mine on the Isle of Youth in south-west Cuba which, based on geological modelling and metallurgical test work, is planned to produce approximately 65,000 tpa of concentrate, containing gold, silver, and antinomy for 7 years, that could be followed by underground operations for 10 years.
- The current pipeline of additional projects with near-term development potential includes the El Pilar gold-copper oxide deposit overlying a large copper-gold porphyry system, and the possible reopening of four previously producing copper-zinc mines within the New Horizons VMS style polymetallic belt. These properties in central Cuba will be explored initially by Antilles Gold prior to their transfer to a joint venture with GeoMinera for additional exploration and studies, and potential development to produce gold, silver, copper, and zinc concentrates.
- The joint venture partners intend to invest part of the expected profits from the La Demajagua mine to fund future mine developments, and an extensive exploration program of major targets, including the El Pilar copper-gold porphyry system, and the New Horizons polymetallic mineral belt. Both of these Concessions are held in an Exploration Agreement with GeoMinera.
- Importantly, GeoMinera’s 51% shareholding in the joint venture company reflects ownership and does not provide control of decisions at Board or Shareholder Meetings, where the two shareholders have equal votes.
- The joint venture agreement also includes the requirement for all funds to be held in a foreign Bank account with the only transfers to Cuba being for local expenses, and for Antilles Gold to nominate all senior management.
- Antilles Gold 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.
Exploration Director, Dr Christian Grainger Examining Drill Core – El Pilar
