How Antilles Gold’s Nueva Sabana Update Sets Stage for Copper-Gold Growth

Project Overview and Updated Financials

Antilles Gold Limited (ASX – AAU) has provided a comprehensive update to the financial analysis underpinning the Pre-Feasibility Study (PFS) for the Nueva Sabana copper-gold mine in Cuba. This update, prepared by the joint venture company Minera La Victoria SA (MLV), reflects increased capital and operating expenditures alongside revised financing arrangements. Crucially, the study incorporates significantly higher assumed metal prices; US$3,250 per ounce for gold and US$9,250 per tonne for copper; compared to earlier assumptions.

The project is a 50 – 50 joint venture between Antilles Gold and the Cuban government’s GeoMinera SA, with MLV responsible for mine development. The mine is designed as an open pit operation with a planned mine life of approximately 4.6 years, processing 500,000 tonnes of ore annually.

Resource and Reserve Highlights

The updated PFS confirms a maiden Probable Ore Reserve of 1.76 million tonnes grading 0.5% copper and 1.5 grams per tonne gold. This reserve is supported by a Mineral Resource Estimate that includes 106,400 ounces of shallow gold and 52.44 million pounds of copper, with the majority of mineralisation located within 50 meters of the surface. The resource classification is predominantly Indicated (87.5% of Life of Mine production target), with the remainder Inferred, which carries a lower geological confidence.

Economic Metrics and Financial Outlook

Financial modelling projects a net profit of approximately US$167 million over the life of the mine, with total net revenue forecast at US$318.5 million against total costs of US$151.5 million. The project’s net present value (NPV) at an 8% discount rate stands at US$137 million, while the internal rate of return (IRR) is an impressive 138%. Antilles Gold’s 50% share of surplus cash is estimated at around US$82 million, underscoring the project’s potential to generate strong shareholder returns.

The updated financial analysis also factors in a US$29.5 million fixed-price engineering, procurement, and construction (EPC) contract with Shandong Xinhai Mining Technology Systems Inc, which will deliver the concentrator plant and associated infrastructure. Operating costs have been revised upward but remain competitive, supported by metallurgical testwork confirming strong recoveries of 84% for gold and 82% for copper.

Permitting, Infrastructure, and Development Timeline

The project has secured all necessary environmental and mining permits, including a full Environmental Licence granted in November 2024. Infrastructure plans include new access roads, power supply connections, and water sourcing from the nearby Sabana Nueva reservoir. The construction execution plan anticipates a 15-month build period, with civil works commencing in December 2025 and mining operations expected to start in early 2026.

Antilles Gold’s Chairman, Brian Johnson, expressed confidence in the project’s readiness, noting that detailed engineering is well advanced and commissioning is expected to be completed comfortably before the end of 2026. The company also plans to leverage free cash flow from Nueva Sabana to fund exploration of deeper copper mineralisation and other regional targets, potentially extending the mine life and enhancing value.

Risks and Forward Outlook

While the updated PFS paints a robust picture, the project carries inherent risks typical of mining ventures. The reliance on Inferred Resources introduces geological uncertainty, and the availability and terms of future funding remain to be fully secured. Commodity price volatility, geopolitical factors, and operational challenges in Cuba also warrant close monitoring. Nonetheless, the project’s strong financial metrics and secured permits position it well for development.