Nueva Sabana PFS Projects US$69M NPV and 57.7% IRR with 1.76Mt Ore Reserve

Project Overview and Resource Base

Antilles Gold Limited (ASX: AAU) has released the results of a Pre-Feasibility Study (PFS) for its Nueva Sabana copper-gold project in central Cuba, marking a significant milestone with the declaration of a maiden Probable Ore Reserve. The project, operated through the 50:50 joint venture Minera La Victoria SA (MLV), is located 25 km east-southeast of Ciego de Ávila and is anchored by a JORC 2012 compliant Mineral Resource Estimate (MRE) of over 4 million tonnes containing 106,400 ounces of gold and 52.4 million pounds of copper.

The resource is divided into three metallurgical domains, Gold, Copper-Gold, and Copper, with 91% of the resource within 50 meters of surface, underscoring the project's potential for open-pit mining. The maiden Ore Reserve estimate totals 1.76 million tonnes at an average grade of 0.5% copper and 1.5 g/t gold, reflecting a robust foundation for development.

Mining and Processing Plans

The PFS outlines conventional open-pit mining methods using industry-standard drill-blast-load-haul techniques. Mining Associates Pty Ltd led the mining study, employing advanced software for pit optimization and scheduling. The Life of Mine Plan (LOMP) anticipates moving 8.7 million tonnes of material at a strip ratio of 2.95, with a mine life of approximately 4.6 years based on a mining rate of 500,000 tonnes per annum.

Processing will be conducted via a 500,000 tpa flotation concentrator plant designed to produce two concentrate products: a gold concentrate through bulk flotation and a copper-gold concentrate via selective flotation. Metallurgical testwork conducted in Canada demonstrated recoveries of approximately 84% for gold and 82% for copper, with clean concentrate streams that are highly saleable.

Financial Highlights and Off-Take Agreements

Financial modelling within the PFS assumes metal prices of US$2,250 per ounce for gold and US$9,000 per tonne for copper. The project forecasts total net revenue of US$233.2 million against total costs of US$134.1 million, resulting in a pre-tax net profit of US$99.1 million. The net present value (NPV) at an 8% discount rate is estimated at US$69 million, with an internal rate of return (IRR) of 57.7%, indicating strong economic viability.

Antilles Gold is actively negotiating an off-take agreement with a major international commodity trader, which includes favorable payables and provisions for advanced payments to support construction funding. The company is confident in the terms, which are comparable to other market offers, and anticipates the first concentrate shipment could occur as early as Q1 2026, subject to finalizing project financing.

Environmental and Social Considerations

The project has secured its full Environmental License as of November 2024, following a comprehensive Environmental Impact Study. Infrastructure plans include connection to the national electrical grid, water supply from the nearby Sabana Nueva reservoir, and access improvements to roads and rail for concentrate export via the Port of Mariel.

MLV emphasizes local employment, projecting a workforce peak of 327 employees with a majority being qualified personnel. Closure planning includes rehabilitation of the mine site with reforestation and environmental monitoring to ensure long-term sustainability.

Outlook and Growth Potential

While the PFS supports near-term development, the project also holds significant upside potential. Deep copper mineralization below the current mining depth remains open and will be targeted in exploration programs planned for 2026-27. Additionally, oxide gold-copper targets near the Gaspar and Camilo porphyry deposits offer further resource expansion opportunities.

Antilles Gold’s management remains focused on securing project funding and finalizing off-take agreements to advance Nueva Sabana towards construction and production, positioning the company to capitalize on favorable commodity markets and Cuba’s strategic mining landscape.