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    • Delayed Prices (USD) - Last Updated 09-08-2022
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    Antilles Gold delivers 25% resource increase at La Demajagua, Cuba

    Antilles Gold (ASX: AAU) reports that it has delivered a 25% increase in resources for its La Demajagua Gold-Silver Deposit in Cuba.

    The Mineral Resource Estimate, revised by Western Australian mining consultants Cube Consulting, has been prepared in accordance with JORC 2012 standards and has received an additional 2.6 million tonnes of resources.

    Image: Antilles Gold Limited

    This increase is expected to allow the mine life of the proposed open pit operation to be extended from six to eight years.

    Commenting on the MRE update, Antilles Gold Executive Chairman Brain Johnson said: “Any increased life of the La Demajagua open pit mine would assist the Company’s joint venture with Cuban mining company GeoMinera, to arrange project finance.

    Antilles Gold has commenced discussions on this matter with prospective financiers that are not impacted by US sanctions, and has allowed 12 months to have finance in place.

    Any increased life of the La Demajagua open pit mine would assist the Company’s joint venture with Cuban mining company GeoMinera, to arrange project finance”

    Approximately US$15 million of the US$65 million of third-party funding that will be required for the La Demajagua mine may by provided as credit by the Chinese suppliers of the project concentrator, and the heavy mining equipment, backed by the China Exim Bank or insurance company, Sinosure.

    Antilles Gold may provide a short-term loan of up to US$15 million to the joint venture which could come from anticipated proceeds from US$30 million of Claims against the Dominican Republic Government which are currently being arbitrated by a unit of the World Bank, conversion of listed options in April 2023, or from an issue of shared or notes later in 2023. 

    [I am] confident that a project loan of US$35 million will be able to be arranged for the joint venture, where the lender will be repaid from a proportion of the proceeds from concentrate sales under a life of mine off-take agreement.

    An important next step in the bankability of the proposed mine will be negotiation of the concentrate off-take agreement.”

    The company also notes that a previously completed Scoping Study for the proposed open pit mine is set to be revised in order to determine the positive economic impact of the estimated additional 188,000oz of contained gold in the revised resources.

    In addition, the MRE for the proposed open pit is scheduled to be finalised once all outstanding assays are received in July 2022, with 90% of the 28,000m drilling program now returned.

    However, the planned drilling program for an underground mining operation could be potentially delayed until 2028. The company expects this to be completed in time for any development to ensure the continuity of operations at the project.

    The La Demajagua Gold/Silver Mine is located approximately 100km from mainland Cuba on the Isle of Youth within the Caribbean, and is accessible from the port city of Nueva Gerona.

    The project’s proposed open pit mine has the potential to operate at a mining rate of 950,000 tpa of ore with a stripping ratio of 8.5:1, and produce 70,000 tpa containing approximately 100,000 oz Au equivalent.

    Antilles Gold reports that a Definitive Feasibility Study for its proposed open pit mine is scheduled to be completed by November 2022, with mine infrastructure planned to commence in the first half of 2023.

    Adam Drought
    Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.

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    • Delayed Prices (USD) - Last Updated 09-08-2022
    • Gold $1,789.20
    • Silver $20.65
    • Platinum $940.00
    • Palladium $2,162.00
    • Dalian Iron Ore i2301 $110.28
    • Aluminium $2,416.00
    • Cobalt $50,460.00
    • Copper $7,870.50
    • Lead $2,070.00
    • Nickel $22,216.00
    • Tin $24,455.00
    • Zinc $3,488.50