Antilles Gold Ltd (ASX:AAU, OTCQB:ANTMF) is projected to deliver an updated scoping study this month for its La Demajagua open pit mine in Cuba.
The scoping study will be finalised in around two to three weeks after confirmation of the likely sale price of the antimony-gold-silver concentrate to be produced from the mine.
Based on metallurgical test-work, current JORC resources and an updated pit shell, the revised scoping study has adopted an ore feed rate of 900,000 tonnes per annum to the crusher and a mine life of eight years.
Encouragingly, an acceptable indicative offer has been received from a major international trading company for the gold concentrate that will ultimately be shipped to several smelters that can accommodate the high arsenic levels.
Production plan
The mine is planned to produce two concentrate products:
- 50,000 tonnes per annum of gold concentrate grading between 36 g/t and 38 g/t gold, 150 g/t silver, and ~28% arsenic
- 8,000 tonnes per annum of antimony concentrate grading 36% to 40% antimony, 28 g/t gold, ~2,000g/t silver, and ~5.5% arsenic.
This represents production of about 90,000 ounces of gold equivalent per year in concentrates.
Continuing metallurgical test-work will determine the final quantities and grades of the concentrates for inclusion in the project’s definitive feasibility study (DFS).
Consultants engaged
The joint venture company, Minera La Victoria SA, which is developing the La Demajagua mine, has engaged Brisbane-based consultants, West End Mining Co (WEMCO) to assist in marketing the antimony concentrates due to their experience in successfully marketing similar antimony concentrates, and their established contacts with antimony smelters.
WEMCO has provided the target specification for the La Demajagua concentrate to specialist antimony smelters in China, Vietnam, India and Oman, all of whom have indicated strong interest in the product.
Furthermore, It will advise their preferred buyer and appropriate pricing within two weeks which will allow the revised scoping study to be finalised a few days later.
Forward plan
In parallel with the DFS, which is expected to be completed in March/April 2023, a specialist South African-based engineering group is undertaking a review of the prospect of increasing the project’s profitability by producing doré from the arsenopyrite gold concentrate through a relatively small BIOX/CIL plant.
Additional antimony assays from the recent drilling program at La Demajagua, ongoing metallurgical test-work and further engineering by the preferred turnkey process plant constructor will refine the design and costing of the flotation circuit for inclusion in the DFS.