Name of the Project
La Demajagua refractory gold/silver project.

Location
The project is located on the Isle of Youth, in south-west Cuba.

Project Owner/s
Minera La Victoria (MLV), a joint venture between PanTerra Gold Investments Limited (PGIL) and Gold Caribbean Mining (GCM), a subsidiary of government-owned mining company GeoMinera. GCM will hold 51% of the JV, and PGIL will hold 49%.

Project Description
Subject to the success of feasibility studies, MLV intends to develop an openpit mine to produce an estimated 60 000 t/y of concentrate expected to grade at about 47 g/t gold and 380 g/t silver based on historical metallurgical testwork.

The mine life for the openpit operation is expected to be about six years and this could be followed by an underground operation for a further ten years.

A prefeasibility study (PFS) will determine whether MLV’s best option is to sell the concentrate it produces or to process it on site through an Albion/carbon-in-leach process plant to produce doré for refining.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
PanTerra Gold has completed a preliminary economic assessment for the project’s proposed concentrate and doré options.

Total development costs for the concentrate option are estimated at $60-million, including the cost of feasibility studies, infrastructure, mine design and development, as well as interest during construction.

The cost of this development concept will be much easier to fund while US sanctions remain in place against financial institutions supporting projects in Cuba.

The development costs for the doré option have been assessed at $130-million, which would be more difficult to finance; however, both options will be studied to assess comparative returns.

Planned Start/End Date
Not stated.

Latest Developments
As soon as the Covid-19 pandemic restrictions on travel to Cuba are lifted, MLV will start a 15 000 m drilling programme committed to establishing an initial indicated Joint Ore Reserves Committee-compliant resource for the property and provide confirmation of potential extensions of the orebody along strike and at depth.

MLV will also start a preliminary feasibility study for the project, which will cost about $2.5-million, including the initial drilling programme, over a ten-month period.

A definitive feasibility study, including an additional 10 000 m drilling programme, will follow the PFS and cost an estimated $4.5-million over a 12-month period.

The PFS will review technical and commercial aspects of MLV’s development concept.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
PGIL, tel +61 2 4861 1740 or email admin@panterragold.com.