PERTH (miningweekly.com) – The Cuban government has approved a joint venture (JV) between State mining company Geo Minera SA and ASX-listed PanTerra Gold Investments, which will allow for the development of the La Demajagua gold/silver deposit.
PanTerra on Wednesday told shareholders that subject to successful feasibility studies, the JV company Minera La Victoria SA (MLV) would develop an openpit operation producing some 60 000 t/y of concentrate with an expected grade of 47 g/t gold and 380 g/t silver.
The project is expected to have a mine life of some six years, but could be extended by a further ten years with an underground operation.
MLV is expected to launch a prefeasibility study into the La Demajagua project as soon as restrictions around the Covid-19 pandemic ease, with PanTerra estimating that the study would cost some $1.2-million and would be completed over a period of 10 to 12 months.
The prefeasibility study would also determine whether the concentrate would be sold directly to producers, or whether it would be processed on site to produce dore for refining.
The development cost for the concentrate option has been estimated at around $60-million, while the cost for the dore option has been estimated at $130-million.
A 5 000 m drilling programme is planned as part of the prefeasibility study, to establish a Joint Ore Reserves Committee-compliant resource and preliminary mine plan, followed by a 20 000 m programme during the definitive feasibility study, to improve the resource category and finalise the mine design.
PanTerra is expected to contribute $6-million in funding over a two-year period, and subject to a development decision, would subscribe for a further $7-million of equity in MLV to establish its 49% shareholding.
The $7-million investment will be spent on infrastructure associated with the mine development, the company told shareholders.
Geo Minera, in turn, will be credited with a $13.5-million share in MLV, giving it a 51% ownership in the JV, in return for the transfer of its mining concession for the openpit operation.