Nueva Sabana PFS and Revised Resource Boost Antilles Gold’s Cuban Projects
Antilles Gold Limited reports significant progress on its Cuban joint venture projects, including updated resource estimates and feasibility studies, while managing a constrained cash position heading into 2025.
- Revised Mineral Resource Estimate and Preliminary Feasibility Study completed for Nueva Sabana
- La Demajagua project development plans expanded to include antimony recovery circuit
- Exploration focus on El Pilar porphyry copper system and Sierra Maestra concessions
- Cash on hand at A$658,000 with plans to raise $1 million in February 2025
- Joint venture with Cuban government’s GeoMinera SA continues under favourable fiscal terms
Progress on Key Cuban Mining Projects
Antilles Gold Limited (ASX: AAU) has provided its quarterly update for the period ending 31 December 2024, highlighting steady advancement in its Cuban joint venture projects. The company, through its 50:50 partnership with GeoMinera SA, is developing the Nueva Sabana and La Demajagua mines, targeting gold, copper, silver, and antimony concentrates. These projects form the backbone of Antilles Gold’s strategy to establish a diversified mining operation in Cuba.
The Nueva Sabana project has reached a critical milestone with the release of a revised Mineral Resource Estimate (MRE) and a completed Preliminary Feasibility Study (PFS). The PFS outlines a mining operation processing approximately 500,000 tonnes of ore annually over an initial four-year mine life. Metallurgical testing indicates a phased production approach, beginning with a high-grade gold concentrate followed by a blended copper-gold concentrate, positioning the project for near-term development.
Expanding La Demajagua’s Economic Potential
Meanwhile, the La Demajagua project on Cuba’s Isle of Youth is progressing with plans for an open pit mine expected to operate for nine years, potentially extending underground thereafter. Notably, the joint venture is enhancing the project’s scope by incorporating an antimony recovery circuit, responding to rising global demand and price increases for this critical metal. This strategic pivot could significantly improve the project’s economics and diversify revenue streams.
Exploration and Future Growth Prospects
Beyond development, Antilles Gold is actively exploring high-potential copper porphyry targets. The El Pilar concession, underlying the Nueva Sabana mine, has shown promising geological indicators consistent with large porphyry copper systems. Although no drilling occurred this quarter, plans are underway for further exploration in the second half of 2025. Additionally, the Sierra Maestra copper belt concessions, including La Cristina and Vega Grande, remain key exploration priorities with soil sampling programs anticipated to commence mid-year.
Financial Position and Operational Outlook
Financially, Antilles Gold reported cash on hand of A$658,000 as of December 31, 2024. The company acknowledges a tight cash runway, estimating less than two quarters of funding available based on current expenditure rates. To address this, Antilles Gold plans to raise approximately $1 million from existing shareholders in February 2025. The company remains confident in its ability to continue operations and meet business objectives, supported by a favourable fiscal regime in Cuba, including an eight-year income tax holiday and no import duties on equipment.
The joint venture structure also mitigates country risk by holding all proceeds from loans and product sales in a foreign bank account, with funds remitted to Cuba solely for local expenses. This arrangement, combined with Antilles Gold’s operational control over management appointments, positions the company well to navigate the complexities of mining in Cuba.
Looking Ahead
In the coming quarter, the company aims to finalise the revised joint venture agreement, secure concentrate off-take agreements, and commence construction at Nueva Sabana, contingent on financing. The La Demajagua project will see completion of an updated Scoping Study incorporating higher metal prices and antimony production. Exploration activities at El Pilar and Sierra Maestra are scheduled to resume later in 2025, maintaining momentum toward long-term growth.
Bottom Line?
Antilles Gold’s Cuban ventures are advancing technically and strategically, but near-term funding remains a critical watchpoint.
Questions in the middle?
- Will Antilles Gold secure the necessary financing to commence Nueva Sabana construction on schedule?
- How will rising antimony prices influence the economic viability and prioritisation of La Demajagua?
- What exploration results can be expected from El Pilar and Sierra Maestra in the latter half of 2025?