La Demajagua Drilling Program Set for 15,000m with DFS Targeting 800,000tpa Ore

Setting the Stage for Growth

Antilles Gold Limited (ASX, AAU) has announced a major step forward for its La Demajagua gold-silver-antimony mine in Cuba, with a planned infill drilling program of 10,000 to 15,000 metres commencing in the first quarter of 2026. This initiative aims to refine the classification of mineral resources and confirm the extent of antimony deposits, a critical component given the metal’s rising global demand and price.

The drilling will be executed by Xinhai Mining, a Chinese mining and engineering group already engaged with Antilles Gold through an engineering, procurement, and construction contract for the Nueva Sabana copper-gold mine. The program is designed not only to improve geological understanding but also to provide core samples for metallurgical testing and geotechnical evaluation, essential for the next phase of project development.

From Drilling to Definitive Feasibility

Following the approximately nine-month drilling campaign, Antilles Gold plans to update its Mineral Resource Estimate and conduct pit optimisation studies for a projected nine-year open pit operation. The Definitive Feasibility Study (DFS), targeted for completion by the third quarter of 2027, will focus on mining around 800,000 tonnes of ore annually and producing a bulk gold-arsenopyrite concentrate enriched with silver and antimony.

Importantly, the DFS will incorporate additional metallurgical test work to validate earlier findings that suggest a high recovery rate of antimony as 98% pure cathodes. This could significantly enhance the value proposition of the project, especially as Antilles Gold explores the option to process these cathodes outside Cuba into even higher purity ingots for international markets, where prices are currently nearly triple those in China.

Financial and Strategic Implications

Funding for the La Demajagua project is expected to be bolstered by surplus cash flow from the Nueva Sabana mine, anticipated to generate around US$60 million in 2027-28. This internal capital, combined with credit facilities linked to the EPC contract and prepayments from gold concentrate sales, should ease financing challenges that have historically complicated project development in the region.

Chairman Brian Johnson highlighted the dramatic increase in metal prices since March 2023, with gold more than doubling to over US$4,000 per ounce, silver rising above US$50 per ounce, and antimony prices surging internationally to around US$50,000 per tonne. These market dynamics are expected to improve project returns despite higher capital costs and the additional processing required for antimony cathode production.

Looking Beyond La Demajagua

Once the infill drilling concludes, the team will shift focus back to the Nueva Sabana concession to explore deeper copper zones and potentially extend mine life. The company also plans to investigate several shallow gold targets within the concession and explore major copper porphyry systems in Cuba, leveraging the new drilling rigs’ capacity to reach depths of up to 1,000 metres.

With strong governmental support and a clear foreign investment framework in place, Antilles Gold is positioning itself to capitalize on Cuba’s mineral wealth while navigating the complexities of operating in the region. The upcoming DFS and drilling results will be critical milestones in validating the project’s economic potential and shaping its path forward.