Antilles Gold Ltd (ASX:AAU, OTCQB:ANTMF) has extended the induced polarisation (IP) survey it is conducting at the El Pilar copper-gold porphyry system in central Cuba.
The survey, which is more than 60% complete, was originally planned for 20 lines of up to 3 kilometres at 100-metre spacings, with probe receivers at 200-metre intervals, but will be extended to the east to cover a near-surface intrusive identified 1,500 metres from the El Pilar porphyry.
Exploration agreement
The 1,700-hectare concession at El Pilar is one of three concessions selected by Antilles Gold from more than 30 previously explored properties prospective for copper that the company reviewed for inclusion in its exploration agreement with the Cuban Government's mining company, GeoMinera SA.
Selection of the El Pilar concession was based on the results of exploration in the 1990s by Canadian mining company SGS Resources Inc, which undertook mapping, soil sampling and aeromagnetics.
That company dug 22 trenches totalling 4,640 metres and 24,000 metres of shallow drilling of the overlying gold-copper oxide zone at El Pilar.
The aeromagnetic survey indicated three primary porphyry targets – El Pilar, Gaspar and San Nicholas - and potentially others within a cluster.
The signature in Line 14 was promising, indicating that one of the intrusives will continue to a depth greater than 800 metres and that the intrusive to the east is potentially near the surface.
A detailed report on the geophysical survey will be published once it wraps up.
This IP survey is being conducted by Colombian contractors Servicios Geofisicos y Geotecnicos Integrales (SGGI) and the interpretation by SGGI acting chief geophysicist Claude Robillard.
The commercial potential of the El Pilar copper-gold porphyry system will only be determined by drilling and a preliminary program with this objective is planned to start next month, with assays expected from June or July.
Joint venture planned
If the results are positive, Antilles Gold will start negotiations for a subsidiary to enter into a joint venture with GeoMinera to further explore the El Pilar copper-gold porphyry system, and to study its potential development.
The El Pilar site would be excellent for a future major mine as it is located on flat undeveloped rural land and adjacent to a 60-kilometre rail link to the port of Palo Alto, HT power lines, the Cuban central highway and close to nearby towns with available labour.
It is expected that the company's shareholding in a new joint venture would be significantly greater than that in the joint venture established to develop the La Demajagua mine, which is being increased from 49% to 50% to better acknowledge the partnership arrangements for this project.
Increased foreign ownership would reflect GeoMinera's understanding that this may be necessary to attract the participation of a major copper miner in the El Pilar project, if this is appropriate at some time in the future.