The deposits involved in the process are spread over nearly 300,000ha within six separate mining concessions
Antilles Gold said that it has started reviewing a large number of copper/gold deposits in Cuba to determine which of them have to be retained for further exploration and possible development.
In this connection, the Australian gold ore mining company had inked a letter of intent in July 2021 with a subsidiary of GeoMinera, its partner in Cuba. The letter allows Antilles Gold to undertake the review process.
The deposits involved in the process are located within six separate mining concessions. They are spread over a total area of nearly 300,000ha.
Antilles Gold said that extensive data gathered during historic exploration along with records from small scale mining operations in some cases, covering nearly 20 known porphyry and epithermal deposits are being transferred progressively for review.
The subsequently retained properties will be added to the existing exploration agreement of the Australian firm that encompasses sulphide gold deposits at Florencia, Golden Hills, and Maclama, which were previously explored. These sulphide gold deposits are located close to each other in southeast Cuba, said the company.
Following preliminary exploration and economic analysis, the sulphide gold and copper/gold deposits with development potential will be transferred by the firm to Minera La Victoria (MLV), the existing joint venture (JV) with GeoMinera. The transferred deposits could see further exploration, feasibility studies, and potential development.
Antilles Gold said that it will cover the cost of the review process as well as a preliminary exploration of the various assets covered by the exploration agreement. However, the amount spent by it will be reimbursed by Minera La Victoria for any deposits with development potential that are transferred to the latter.
The Australian firm stated: “MLV now has a significant pipeline of development opportunities available to it, and Antilles Gold’s objective is for the Cuban mining company to achieve organic growth by investing part of the surplus cash flow expected to be generated by its first project, the La Demajagua open pit mine, to fund subsequent projects.
“This business plan should limit further capital contributions by the Company, in excess of that to be provided to MLV over the next eighteen months.”
GeoMinera is the Cuban government’s mining company, which has a 51:49 JV with Antilles Gold for developing gold mines in Cuba.