Ann: Test Work for Gold Dore Production at La Demajagua, page-19

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Golddoré a dazzling possibility for La Demajagua mine in Cuba

Antilles Gold (ASX:AAU, OTCQB:ANTMF) has revealed thatmetallurgical test work aimed at producing a gold dore by processing the goldarsenopyrite concentrate to be generated by the La Demajagua mine inCuba, is well advanced.

The test work is establishing the oxidation efficiency and goldrecoveries that could be achieved by roasting the concentrate before theapplication of standard CIL processing to produce a dore.

Antilles Technical Director, Dr Jinxing Ji, who is highlyexperienced in the processing and roasting of refractory gold ores, issupervising all test work.

Dr Ji is also liaising on concentrator and processing facilitydesign, and will estimate the product quantity and grades for inclusion in arevised Scoping Study for the project. “The Company’s 50:50 Cuban joint ventureintends to develop a 50,000tpa two-stage fluidised-bed roaster and CIL circuitat the La Demajagua mine site with the aim of increasing profitability byproducing a gold doré, while de-risking the original concept of sellingdiscounted refractory concentrate into a limited market,”

Antilles told the market in its statement released to theAustralian Securities Exchange this morning.“The delay to constructioncommencement of the La Demajagua mine, caused primarily by expanding theproject to include the processing facility, should be more than justified bythe resultant financial benefits, and project de-risking.”

A March 2023 Scoping Study anticipated approximately 500,000ounces of gold, and 25,000t of antimony in two concentrate products would beproduced from open pit mining at La Demajagua over a 9-year mine life.

With gold now more likely to trade at US$2,000/oz, rather than themodelled US$1,800/oz at a 25% discount (US$1,350/oz nett) for gold in aconcentrate in the original Study, there’s significantly more upside in theproject than forecast a year ago.

On gold-gains alone, over US$300 million in revenues would beadded to the Study’s forecast US$880 million over 9 years which was estimatedbefore the project was expanded to include the processing facility. Sales ofadditional antimony recovered through processing of the gold arsenopyriteconcentrate are another potential source of increased project revenue.

Additionally, US$50 million of operating costs could be savedduring the forecast mine life by eliminating gold arsenopyrite concentrateshipping costs.

Additional capital and operating costs for the processing facilitywill offset part of the anticipated substantial increase in project revenue butthe Company appears confident that the anticipated financial benefits frominstalling a processing facility at La Demajagua will justify spending time ontest work and the updated Scoping Study to verify the improved viability.