Australia-based mining company Antilles Gold announced that the proposed La Demajagua gold mine in Cuba has secured the environmental licence.

The license for the Cuban gold mine was awarded less than three months after the submission of the environmental impact assessment to authorities.

It will be included in the La Demajagua gold mine’s definitive feasibility study (DFS) which is nearing completion, said Antilles Gold.

Located on the Isle of Youth in southwest Cuba, the proposed open pit mine will be developed by Minera La Victoria, which is a joint venture (JV) between Antilles Gold and the Cuban government-owned mining company GeoMinera.

GeoMinera holds a stake of 51% in Minera La Victoria while the remaining 49% is owned by the Australian mining company.

Construction of the proposed open pit mine at the La Demajagua sulphide gold-silver deposit is planned to begin in October 2023 with commissioning aimed for March 2025.

The La Demajagua open pit mine is expected to produce concentrates containing gold, silver, and antimony.

According to an updated scoping study released in March 2023, the La Demajagua mine is estimated to have a project development cost of $86m.

The proposed open pit mine will have nine years of life of mine (LoM).

Besides, the scoping study estimates a net present value (NPV) of $196m for the proposed gold mine with an internal rate of return (IRR) of 33%.

Antilles Gold‘s estimated equity contribution to the La Demajagua project is A$20m ($12.85m).

The JV also plans to develop the proposed Nueva Sabana mine located on the El Pilar gold-copper oxide deposit which covers a large copper-gold porphyry system in central Cuba.