Antilles Gold Limited (ASX: AAU) Announces Revised Scoping Study for Nueva Sabana Project
Revised Study Overview
Antilles Gold Limited (ASX: AAU) has released a revised version of the Updated Scoping Study for the Nueva Sabana gold-copper mine in Cuba. Prepared by the joint venture company, Minera La Victoria SA, the new study presents several key updates and data clarifications. It replaces previously cross-referenced reports and compiles material assumptions for the project.
Financial Projections and Operational Insights
The study includes an updated Life of Mine (LoM) Plan, with an estimated Net Present Value (NPV) of approximately US$71.5 million and an Internal Rate of Return (IRR) of 64.5%. The net profit over the mine’s life is projected at US$104 million, with total operating costs estimated to reach US$107.6 million. The project anticipates an increase in overall resources with further exploration and a potential enhancement of the mine life.
The Scoping Study indicates that the Nueva Sabana project will produce gold and copper concentrates, with the initial gold concentrate averaging ~57.5 g/t Au and a subsequent copper-gold concentrate averaging ~27.9% Cu and ~30.8 g/t Au.
Future Development Plans
Antilles Gold aims to begin construction of the Nueva Sabana project by January 2025, targeting the first shipment of gold concentrate in the first quarter of 2026. The total estimated production is around 2.2 million tonnes, including both gold and copper content.
CEO Comments
James Tyers, CEO of Antilles Gold, stated, “We believe this revised scoping study reflects a favourable outlook based on our updated resources and operational parameters. As we advance towards construction, we remain committed to maximizing stakeholder value through effective project execution.”
The study highlights that the financial analysis remains robust, and continued drilling will focus on increasing resource classification and project expansion. The successful establishment of off-take agreements with international commodity traders will also play a crucial role in funding construct efforts.
Market Context and Considerations
As the mining sector continues to react to fluctuations in commodity prices, Antilles Gold recognizes the need for proactive resource management and project financing strategies to mitigate risks associated with market volatility and operational costs.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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