Antilles Gold confirms high-grade copper porphyry discovery at El Pilar

Antilles Gold’s (ASX: AAU) recent drilling program at the El Pilar oxide-sulphide project in central Cuba has confirmed the presence of high-grade copper porphyry mineralisation.

A six-hole drilling program for 1,800m was completed at the project in September and assays have confirmed the high-grade porphyry discovery, with mineralisation remaining open at depth.

Latest assays returned 134m at 1.23% copper from 49m. This intercept comprised an 18.5m oxide zone grading 5.52% copper from 59m, and a 5.5m sulphide zone grading 4.17% copper from 166.5m.

Antilles noted the results “must be considered as preliminary” as they were completed at the Cuban Government’s laboratory in Havana, which, although is capable and has modern equipment, is not qualified under the JORC code.

The assays will be replicated at a certified laboratory.

According to Antilles, having analysis completed at the Havana lab will allow the company to kick-off a 50-hole program to follow-up on the results several months earlier.

Antilles exploration director Dr Christian Grainger said the length, continuity and grade of copper mineralisation in the 134m intercept, which remains open at depth, indicates El Pilar is potentially a “significant copper-gold porphyry discovery”.

He added the style of mineralisation within the drill core indicates it should be amenable to generating quality copper-gold concentrates.

Preliminary assays from the oxide copper zone of the deposit were reported earlier in the month of 72.4m at 0.63% copper from 36.6m, including 26.2m at 0.86% copper from 72.8m; and 30.4m at 0.55% copper from 49.5m, including 8m at 1.39% copper from 53.5m.

Gold potential

The drill core from El Pilar is also being analysed for gold, with full JORC compliant assays pending.

Preliminary analysis of two holes was completed at the Havana lab and has shown high-grade gold was intercepted.

Notable intervals were 3m at 13.81 grams per tonne gold from 10m; 4.3m at 4.47g/t gold from surface; and 13.4m at 3.53g/t gold from 14.3m.

Next steps at El Pilar

To better-understand the porphyry discovery, Antilles will complete an induced polarisation and magnetics program.

“A follow up 15,000m drilling program to a depth of 300m vertically will immediately follow this geophysical program,” Dr Grainger said.

Antilles executive chairman Brian Johnson said in parallel with exploration at El Pilar, the company would complete a JORC-compliant resource estimate and a scoping study.

The scoping study would evaluate a low-capital expenditure open cut oxide gold-copper mine at El Pilar to produce copper and gold concentrates by October 2023.

Mr Johnson said the company would also work with Cuban authorities to lock-in requisite exploration and mining licences for the project, including ensuring both the oxide and porphyry mineralised zones can be explored and mined.

Meanwhile, the company’s proposed La Demajagua gold-silver mine is scheduled to be developed ready in the second quarter of 2023, with the planned El Pilar oxide mine to follow within 12 months.

Ideal development site

Antilles says El Pilar presents as an “ideal site” for a major mine development.

The project is located on a flat, unoccupied rural area in central Cuba.

However, it is close to available labour, power, water, a highway and a 50km rail link, which runs to a wharf at Palo Alto suitable for concentrate export.

To underpin its exploration and development of El Pilar, Antilles has established facilities in the nearby town of Ciego de Avila.

Cuba portfolio

Antilles is exploring its Cuban assets under joint venture with GeoMinera. Antilles holds a 49% interest in joint venture company Minera La Victoria SA, with GeoMinera owning the other 51%.

The joint venture is focused on progressing the La Demajagua gold-silver project. A definitive feasibility study for an open pit operation at the project is due in March 2023.

El Pilar comes under an exploration agreement with GeoMinera. The agreement allows Antilles to explore and undertake metallurgical test work, and financial modelling prior to it being incorporated into the joint venture for further development.

Antilles noted the joint venture with GeoMinera paved the way for fast-tracked permitting, the waiving of a 15% income tax rate for eight years, and zero import duties on plant and equipment.

It also gives Antilles a low-cost entry for near-term development of previously explored deposits.

While the joint venture has a 49:51 split, both companies have equal votes at board and shareholder meetings.