Ann: Change of Director's Interest Notice, page-17

This sums the situation up nicely.

Antilles builds on sulphide gold expertise in Cuba | The West Australian

AntillesGold is looking to build its position in Cuba, with the Caribbean preciousmetals’ developer launching into feasibility over its La Demajagua gold-silverproject in the south of the country whilst it ponders a second acquisition atGolden Hills in central Cuba.

Thecompany has jumped in boots and all at La Demajagua, on the Isla de laJuventud, as it ploughs in over 25,000 metres of diamond drilling across thehistoric Delita mine environs. Drilling will test the gold and silver-richstratigraphy over more than 2,000 metres of strike and is aimed at delineatinga substantial open pitable resource across the old mining area, which lastoperated in the 1980s.

Delitaboasts an exploration target of 16 to 20 million tonnes grading 2.3 to 2.7grams per tonne gold with a very healthy credit of 17 to 23 g/t silver. Thecompany is proposing a staged development of the operation, initially focusingon open pit operations over the first six years of mining, with a transitioninto higher-grade underground ores in the latter years of the operation.

TheLa Demajagua mine will become the cornerstone for the Company’s planned growthin the region and we have commenced negotiations to acquire 49% ownership ofseveral highly prospective copper/gold properties on the mainland that couldprovide a pathway for future growth. The La Demajagua gold-silver project is held via joint venture vehicle, Minera La Victoria. Antilles is earning a 49 per cent holding in the JV, whilst the Cuban government’s state-owned mineral development company, GeoMinera owns the balance.

Interestingly,the company’s JV with GeoMinera now appears to be opening the doors to a wealthof other development opportunities in Cuba, with Antilles looking to lend itsexpertise in sulphide development to a range of deposits across the islandchain, with the Golden Hills mine in central Cuba looking like it might be thefirst project to receive the company’s attention.

GoldenHills is situated near the regional centre of Camaguey, around 550 kilometresto the south-east of Havana. The deposits at Golden Hills were discovered inthe mid-1990s, with Canadian explorer MacDonald Mines unearthing theoutcropping copper-gold volcanogenic massive sulphide, or “VMS” system in 1994.

Subsequentexploration by MacDonald Mines between 1995 and 1998 delineated three shallowoxide resources at Golden Hill, namely the Little Golden Hill, Three Hills andBig Golden Hill deposits which hosted resources of more 89,000 ounces of gold.

GeoMinerahas in more recent times mined these oxide positions, leaving the underlyingand interconnected VMS system largely intact over several kilometres of strike– making for a tantalising target for future exploration by Antilles.

Theshallow oxide caps have been mined by GeoMinera with the underlying sulphidesbeing attractive for Antilles Gold because of their potential to produce largevolumes of gold concentrates. Antilles Gold’s consulting geologist for this prospect who was involved with MacDonald Mines in the original exploration of the Golden Hills deposits is in possession of extensive related data and is highly enthusiastic about the potential and scale of the sulphide deposit.

VMSdeposits are globally recognised as a significant source of both base andprecious metals. They typically contain a mix of metals, including copper,zinc, lead and gold however it would appear that the Golden Hills deposits arecopper-gold rich, adding to the allure of the project in these times of buoyantmarket prices for both metals.

High-profileexamples of VMS ore systems include the world’s deepest copper mine at KiddCreek in Canada, which proved to be the making of Falconbridge Ltd in the1980’s. Closer to home, the massive Golden Grove mine in Western Australia hasproved a cash-cow for a procession of owners including Aztec, Normandy, Oxianaand EMR Capital.

Explorationdata held by GeoMinera shows that MacDonald Mines drilled over 200 holes intothe Golden Hills VMS system historically, providing Antilles with a significantleg-up for future exploration. The company is currently undertaking anassessment of Golden Hills and will look to form a second JV with GeoMinerashould the project pass muster.

Currently,Antilles focus remains on the Delita mine with the company looking to doubledown on its drilling fleet as the deposit begins to take shape. It has hintedthat a second rig may join the drilling program in the coming weeks and couldbe joined by a third as development work continues.

Historicalmining and exploration at Delita have left a legacy of data and infrastructurefor Antilles, laying a solid foundation for the development of the project,with the company looking to fast-track a move into production. Interestingly,the project is already connected to reticulated power and water, with fibreoptic communications to site.

Thecompany is currently upgrading the office complex on site and modifying anunused military camp for accommodation, whilst a small port facility will bebuilt on the coast about 4km from the mine to facilitate the transport of heavyequipment to site as development advances towards production.

Antillesis targeting an 800,000 tonne per tonne mining operation at Delita to producearound 60,000 tonnes of high-grade gold-silver concentrate per annum. Previousmetallurgical work indicates that this sulphide concentrate would grade at aneye-catching 47 g/t gold and 380 g/t silver, delivering around 90,500 ounces ofgold and 730,000 ounces of silver into Antilles’ vault each year.

Thecompany is proposing to initially sell the concentrate into the emergingSino-Russian market for the product but would ultimately look to use its ownin-house expertise to build a next generation Albion/ Carbon-in-Leach sulphideprocessing plant. The plant will be centrally located, either in the DominicanRepublic or Cuba and could then be utilised to process the Delita concentrateto create gold and silver dore.

Ultimately,a sulphide processing facility might also serve to produce gold and base metalsfrom a range of metallurgically challenging ores being produced across theregion, including the copper-gold ores from Golden Hills.

Thecompany is proposing to utilise components of its mothballed plant at LasLagunas in the Dominican Republic to establish the sulphide processingfacility, with a decision expected to be made later this year, based upon theresults of ongoing feasibility work at Delita.

Antilleshardly seems to have paused for breath since commencing work in Cuba late lastyear but with development now charging ahead at Delita and the company lookingto put a second Cuban project on the books, it seems to have found its grooveand has a busy year ahead its sets about regaining its status as a Caribbeangold producer.