Antilles Gold Limited (ASX:AAU) reports revised Mineral Resource Estimate for Nueva Sabana mine

Antilles Gold Limited (ASX:AAU) has reported a 40% increase in indicated resources in the gold domain and a 60% increase in the copper domain for the Nueva Sabana deposit in central Cuba. The updated Mineral Resource Estimate (MRE) follows the completion of a 2,000m in-fill drilling program. The majority of the inferred resources have been elevated to indicated resources, with the outcropping gold cap containing approximately 40% more oxide material at 2.81g/t Au. The first stage of the Nueva Sabana mine is expected to produce a gold concentrate for 15 months followed by a copper concentrate with gold credits for around 3 years.

Antilles Chairman Brian Johnson comments on Nueva Sabana's MRE

Antilles Chairman Brian Johnson commented on the revised MRE, stating, 'Nueva Sabana's MRE for the first stage of the proposed mine has increased in confidence and size, and the outcropping high-grade gold cap will underpin a low-cost, fast start-up operation. The updated MRE will help to further advance financing negotiations which to date have progressed favorably. Nueva Sabana holds considerable unlocked value with the current MRE based on shallow drilling to only 150 meters. As such, we anticipate a much longer life operation than what has been modeled. Beyond this, the La Demajagua mine is generating increased interest based on the strengthening antimony price, and we are intent on capitalizing on the project's growing appeal.'

Outlook for Nueva Sabana mine and Antilles Gold's corporate strategy

The revised MRE for the Nueva Sabana mine indicates a positive outlook for Antilles Gold, with expectations of a longer operational life and increased interest in the La Demajagua mine. With additional exploration likely to be funded from future cash flows, the company anticipates a substantial increase in mine life and the potential transition of the copper oxide deposit into the underlying El Pilar porphyry copper deposit. Antilles Gold is also preparing a revised optimized pit, mining schedule, and JORC Reserve calculations, which will update the financial model for the first four years of the project. The company aims to finalize negotiations on a concentrate off-take agreement and project financing, with the anticipation of a short repayment time frame based on the current gold price. The Nueva Sabana mine is expected to establish positive cash flow, allowing the company to move forward with the development of the La Demajagua mine, leveraging the strength of the gold price and the anticipated increase in production and pricing of antimony.