Ann: 3D Modelling Indicates Large Scale Porphyry System, page-41

He was indeed,
This from the agm, or at least h8teys take on what he interpreted along with a few others.

On Sunday however he/they are off to London to speak with solicitors et al (and maybe Sprott) before travelling to the US a week later for the arbitration hearing on June 5.
Confidence is as good as it can be, with the DR essentially waiving their right to challenge any technical aspect of the claim (lost yield due to improper tailings processing because of no dedicated dam) which is curious because circa $20m usd worth of losses hang off that very element. The rest falling to tax paid but not due under the contract and also an element of overestimating the resource before commencement by the DR which meant they went skinny at the end.

Anyway we have the hearing on Jun 5, the findings handed down on award in Sep and monies due payable 2m after that. However the company has found an entity willing to lend against the monies owing on successful claim and hence we shouldn't be strung out till end of year waiting for cash to drop.

580m SOI now divided by say $30m usd is .079c on conversion and by the full $45m usd is circa .012c on conversion. Hell even $20m usd is worth circa 0.052c to the SP...

And whether you bank it now or later it's up to the individual, but the DR has paid all other claims brought before a tribunal & the order itself is from a world bank which carries some weight. Especially if you lean on the IMF for a handout every so often? ..

After that we got news the drill rig is spinning on the Porph and the other has completed 2000m of a 7000m campaign. So on that rate of effort (spud 26/4) they should wrap up mid Aug or perhaps a fraction earlier. More on the porphyryr in a minute..
As for the Oxide cap;
Word is they are twinning, I repeat, Twinning old holes so as to merely validate what is already there and not to infill or find new targets.. So wwhat does that mean? It means that the target is as solid as you like because it's based off all the KWG drilling from 1994-1997 with holes on 25m centres and drilled to 150m depth and here's one they twinned earlier. PDH-002

Overall it was 53.5m at 19g/t but have a look at what else made up that lot between only 45-67m down

	Samp_Id	Hole_Id	Depth_From	Depth_To	Sample Interval	Au_G/T	Cu_%	g/m
1	PEL-0221	PDH-002	45.1	47.1	2	15	0.48	30
2	PEL-0222	PDH-002	47.1	48.3	1.2	19.4	0.07	23.28
3	PEL-0223	PDH-002	48.3	49.5	1.2	85.9	0.04	103.08
4	PEL-0224	PDH-002	49.5	51.5	2	123	0.34	246
5	PEL-0225	PDH-002	51.5	53.5	2	46.4	0.33	92.8
6	PEL-0226	PDH-002	53.5	55.5	2	1.25	0.8	2.5
7	PEL-0227	PDH-002	55.5	57.5	2	45.7	3.21	91.4
8	PEL-0229	PDH-002	57.5	59.5	2	3.8	0.51	7.6
9	PEL-0230	PDH-002	59.5	61.5	2	43.1	0.54	86.2
10	PEL-0231	PDH-002	61.5	63.5	2	4.98	0.27	9.96
11	PEL-0232	PDH-002	63.5	65.5	2	0.52	0.36	1.04
12	PEL-0233	PDH-002	65.5	67.5	2	0.74	0.29	1.48
13
14					22.4	31.04	0.60	695.34

Now there are another 19 or so holes (2000m of which is already drilled) that will soon return assays.
LATIN AMERICA — KWG hits impressive gold vales in CubaPOSTED BY: NORTHERN MINER STAFF APRIL 7, 1997Recent drilling is enabling junior to arrive at ore reserve calculation Reverse-circulation (RC) holes drilled by KWG Resources (KWG-T) on the Gaspar concession in central Cuba show impressive gold widths and grades.
Hole 271 averaged 40.29 grams gold per tonne from surface to 41 metres, including 68.26 grams gold for the first 24 metres.
Other holes testing this structure on the same section include hole RC-90, which intersected 8.33 grams gold over 22 metres. Noting RC90 was a twinned by PDH-001 at 13m x 45 g/t from surface


So we can expect plenty more big grades to come as assays are announced between now and Aug.

On the next section, 20 metres to the north of hole RC-94, results averaged 3.02 grams over 60 metres. New hole 267 averaged 2.78 grams over 19 metres, and hole 268 averaged 2.08 grams over 27 metres, all on the same structure.
These RC holes were completed as part of an in-fill drill program being carried out in order to calculate reserves. Four previously announced trenches in this immediate area encountered surface mineralization averaging 5.6 grams gold over 82 metres. As well, five 100-kg samples selected from this same area averaged 12.7 grams in cyanide leach tests. Once all of the drill results are in, KWG will complete its ore reserve calculation. A bulk surface sample for an on-site cyanide leach test is being excavated. Company geologists believe they have intersected two (possibly three) auriferous zones of the feeder system to the Pilar deposit. These zones wander and merge but generally strike northwestward; they are sub-parallel to each other and dip eastward at moderate to high angles. These zones are traceable by trenching and drilling across several drill sections. Gold grades are variable along each zone. According to KWG geologists, the Pilar region of the Gaspar concession has two controlling systems of mineralization: an 8-km-long, northwest-To-southeast trend along which all the known mineralization to date has been found; and crosscutting mineralized faults, apparently hosting hydrothermal breccias. The best gold values are usually associated with quartz veining, silicification and iron oxide mineralization. KWG and Cuban state-owned Geominera each have a 50% interest in the Gaspar project. KWG is 25%-controlled by St. Genevieve Resources (SGV-T).

And I thought someone asked about strip ratio in regard to the oxide cap, or proposed mine lets call it shall we?
Again because of the work KWG did, the strip ratio of the oxide cap down to 100m should be fairly skinny, noting all the trenching KWG did back in the day (1312m) and none of it was deeper than 1.5m! See map and historical results below.

Trenching on the Gaspar property in west-central Cuba is revealing a significant zone of gold mineralization.Four trenches have been excavated on the property, which is a 50-50 joint venture between KWG Resources (TSE) and Cuban state-owned Geominera.

	MONTREAL, Feb. 27 /CNW/ - KWG Resources Inc. states that the company has
1	received extremely encouraging new trenching and metallurgical results from
2	its Gaspar property situated in Cuba. Results from four new trenches excavated
3	to a depth of 1.5 metres averaged 5.6 g/t Au over 82 metres, significantly
4	higher than previously reported trenches taken from surface. In addition, five
5	larger samples taken from these trenches averaged 12.7 g/t Au. The company
6	intends to undertake a 50,000 ton bulk sample in order to assess the true gold
7	content for feasibility purposes.
8
9	-------------------------------------------------------------------------
10	Trench No. Length (m) Depth (m) Grade (g/t Au)
11	-------------------------------------------------------------------------
12	1(x) 166m Surface 3.77g/t
13	-------------------------------------------------------------------------
14	2(x) 58m Surface 1.3g/t
15	-------------------------------------------------------------------------
16	3(x) 57m Surface 1.33g/t
17	-------------------------------------------------------------------------
18	4(x) 142m Surface 2.74g/t
19	-------------------------------------------------------------------------
20	5(x) 186m Surface 1.38g/t
21	-------------------------------------------------------------------------
22	6(x) 316m Surface 0.6g/t
23	-------------------------------------------------------------------------
24	7(x) 108m Surface 4.1g/t
25	-------------------------------------------------------------------------
26	pilar
27	-------------------------------------------------------------------------
28	(New) 4.5 74m 1.5m deep 7.48g/t
29	-------------------------------------------------------------------------
30	(New) 7 83m 1.5m deep 5.124g/t
31	(To depth) (Incl. 10.55 g/t Au
32	over 32m)
33	-------------------------------------------------------------------------
34	(New) 7a 90m 1.5m deep 5.25g/t
35	-------------------------------------------------------------------------
36	(x) Previously reported trenches
37
38	Preliminary recoveries of 77% from a 50 day leach on material crushed to
39	16mm and with a head grade of 11.40 g/t Au have been reported by Kappes,
40	Cassidy & Associates on material submitted to them. Further to these, the
41	company has taken five larger samples from individual trenches. Three of which
42	weighed 60 kilograms each and a further two which weighed 100 kilograms each,
43	all of which is tabulated below:
44
45	-------------------------------------------------------------------------
46	Bulk Location Head Recovery Crush Time
47	Sample Grade Size
48	g/t Au
49	-------------------------------------------------------------------------
50	M 1+2+3 Avg Trench 13.9g/t 90% recovery (-1.9mm) 22 Hrs
51	Lakefield 1 & 4
52	-------------------------------------------------------------------------
53	M4 Trench 7 12.9g/t 90 % recovery (-1.9mm) 70 Hrs
54	Lakefield
55	-------------------------------------------------------------------------
56	25022 7 11.4 g/t 77 % recovery (-16mm) 50
57	Kappes Cassidy Days
58	-------------------------------------------------------------------------
59
60	KWG has conducted the additional trenching as mini-bulk results were four
61	times higher than previously reported drill results.

Average g/t ranged from 11-13g/t with a low of 77% recovery rate on a 16mm crush..

Antilles yesterday claimed an 83% recovery rate would be achieved with a simple flotation circuit and concentrator setup on site and the payable value of the gold extracted would be in the order of 90% due to the low impurity nature.

The target estimate as it was published before should be verified in 10-12 weeks from now.

Which is interesting because the rhetoric yesterday and the officially facelifted company presso has been altered and now has El Pilar jorcing and prepped for mini g development in 2024 as opposed to the original mid 2025. The company is advancing El Pilar and sees cashflow here coming quickly and cheaply.. with construction costs less than half the original $25m usd est

Proposed Gold-Copper
Mine

The El Pilar copper-gold porphyry deposit in central Cuba has an 80m to 100m overlying oxide zone with high grade gold and copper domains that is expected to be developed as a low cap-ex open pit mine to produce gold and copper-gold concentrates.

Assays from 24,000m of historic drilling by a Canadian mining company in the 1990s indicated an Upper Exploration Target for the outcropping gold domain of 1.4 Mt of ore containing 221,000 oz of gold at a grade of 4.8 g/t Au, and 1.7Mt of ore containing 52.7 lb of copper at a grade of 1.41% Cu in the underlying copper domain ( advised to ASX on 5 July 2022 ).

Based on these ore quantities and grades being confirmed by exploration, it is anticipated that a low cap-ex mine could be developed to produce around 400,000tpa of ore, and be able to be fully funded by a gold loan. The low capital costs will reflect the flat mine site, availability of highway and rail access, local labour and accommodation, and HT power and water supply.

Metallurgical test work has indicated an 83% recovery for gold through a flotation circuit, and assuming typical industry payables for the concentrates, a 7 year operation would result in a significant project cash surplus being generated at current metal prices.

A two stage exploration program (2,000 m that was completed in 2022, and 7,000 m is to be undertaken in early 2023) will allow JORC Resources and a Scoping Study for the proposed project to be established by the end of 2023. The oxide concession has been transferred to the existing joint venture mining company for planned development in 2024.

Pilar is being fast tracked in order to generate cashflow even quicker than was possible at La Demajaguar and this approach was confirmed at the meeting & as written in the release above.

That doesn't mean La Dem is forgotten, quite the contrary and it was announced that the company will be looking to make an ann in the near future in relation to negotiations and developments surrounding the Antimony and any possible offtake partner. One ore constrained smelter that is currently underutilized was particularly interested so as to negate the control of china over the Antimony ore supply chain.

In fact China with control of 56% of the worlds Antimony (A critical mineral element to the US Military) controls 65% of the entire worlds CRM's as it stands and up to 100% in a number of elements.

No wonder the US is concerned, they produce 0 of the their own demand for Antimony and will struggle to get a mine up and running (it's in a national park for Pete's sake) any time soon to be frank & yet their military depends on it!! The mind boggles and I have no doubt that the need for National Security, often outweighing all else with that mob, were to be front and centre then as long as you wiped off the "Product of Cuba" tag they'd happily ignore the origins.. ;-)


But for El Pilar to be serious you'd have to have access to a mining fleet etc in order to drill and blast your way down through 100m of soft oxide and gold. And as far as I knew the company didn't have access to one until it was reported at the meeting that there is a fleet of volvo mining equip which has been earmarked & reserved by the company for exactly that.. Which leads h8tey to believe the future is near upon us and all things being equal looks rather bright.

So it looks as if cashflow will come from possible offtake partners, Arbitration and then Cashflow from Oxide operations, then La Demajaguar so as to fund drilling should a suitable JV partner not be found. Which it will need to do unless a JV partner jumps early to take advantage of the setup.
The 75% foreign ownership, so as to entice a Tier 1 miner, is still very much open for discussion now that the JV is moving to a 50/50 split.
Basically the Au-Cu resource at Pilar will more than likely be too big for a minnow to drill out, best option is sale on or before confirmation.
The drill rug they have is constrained by nameplate to only drill to 600mtvd or up to 7-800 on the right azimuth.
Of which the first hole will be set at 50 degrees so as to intersect the A, B, C&D veins and to determine true width where possible much like PDH-004A did in the sericite material..


They nail the right grade and mineralization in these upcoming holes and down to the full 600m across the 3 plumes and finish in mineralisation it sticks a big ol fork in this one Jerry and we'll consider it done.

As for Gaspar it is reported in area as 100 x 450 x 50 (assuming 50-100m is the zone) which is 2.250,000,000 cubic metres which when multiplied by a delta of 2.5 (SG weight of host lithology, est only) gives us 5'625'000 tons of ore, which at the lowest value shown below of 1.46g/t you get 8.2m grams gold or roughly 286'205 oz Au which at $45us in ground value totals $12'879'253 usd or $19'705'257 aud which is 3.5c based on new SOI of 580m shares.

Arbitration at say $30m usd payable and El Pilar are circa 11c to the SP as it stands and both are on short term ramps now. The porphyry will be a bonus of huge proportions, but when, who knows.. Still I'll take 11c any day of the week and hence voted for the remuneration as it stood, give Brian the money as far as H8tey's concerned, he deserves it.

p.s first hole into the porph will be at 50 degrees and target cross cutting the vein stockwork as did PDH-004 and also set the est width of the plume. After that we think it is straight down but that's Christian's realm and he is still pinpointing the best possible placement and dip in order to maximize the return on the bit.

Fluid was how the program was described and I can live with that. because the man that called it 12m ago is the same one targeting the same structures now so I trust he knows what he's doing. But we are spinning & so will all know soon enough, ergo GLTAH... H8teee