Cuba’s next big mineral bonanza: Antilles Gold aims for massive antimony gains at La Demajagua

Antilles Gold Limited has announced plans to significantly expand its antimony production potential at the La Demajagua gold-silver-antimony mine in Cuba. This development follows successful metallurgical test work by BGRIMM Technology, a Chinese engineering group specializing in the design and construction of processing facilities. The tests demonstrated a potential recovery of 77.9% antimony from about 53,000 tonnes per annum (tpa) of gold-arsenopyrite concentrate, producing 2,028 tpa of antimony. This production would be combined with 5,900 tpa of silver-gold-antimony concentrate to yield 2,758 tpa of antimony, resulting in a total annual production of approximately 4,786 tpa of saleable antimony.

Enhanced Economic Viability for La Demajagua Project

The project is a joint venture between Antilles Gold Limited and the Cuban Government’s GeoMinera SA, developed through their joint venture mining company, Minera La Victoria. The La Demajagua project aims to tap into Cuba’s rich mineral resources, especially strategic minerals like antimony, which has seen its price double recently due to China’s export restrictions. With current prices hovering around US$26,000 per tonne, the project stands to gain significantly from the increased production and price of antimony.

The metallurgical test work by BGRIMM has validated the technical feasibility of using a two-stage fluidised-bed roaster, an acid plant, and a Carbon-in-Leach (CIL) circuit to recover gold and antimony from the ore. According to JJ Metallurgical Services Inc., this method will increase the profitability and Net Present Value (NPV) of the La Demajagua project. The project’s development is set to be ready by Q4 2025, with the first phase involving the production of gold-arsenopyrite concentrate and silver-gold-antimony concentrate.

Stock Performance and Investor Sentiment

Antilles Gold Limited, trading on OTCMKTS under the ticker ANTMF, is currently priced at $0.01 per share with a market cap of $4.91 million. The stock has experienced a 52-week range between $0.0006 and $0.11, indicating high volatility, reflected in a Beta of 1.34. Despite financial losses of $4.18 million in the last year, the company’s ambitious plans to enhance antimony production could offer a significant upside. Given the high demand and limited supply for antimony, the stock could attract interest from strategic investors focusing on critical minerals. However, caution is advised due to the stock’s volatility and ongoing financial challenges.

Expert Opinion: Strategic Timing Amidst Market Shifts

The increase in antimony production comes at a strategic time when global supply constraints are pushing prices upward. Industry experts note that Antilles Gold’s move to expand its antimony output positions it advantageously to capitalise on the global demand for the metal, essential for flame retardants, batteries, and other technological applications. The company’s joint venture structure, favourable fiscal terms, and control over foreign exchange risks further enhance the project’s attractiveness to investors.

La Demajagua: A Step Towards Sustainable Mineral Production

The La Demajagua mine is part of a broader strategy by Antilles Gold and GeoMinera SA to leverage Cuba’s rich mineral reserves. The joint venture aims to use advanced processing techniques and adhere to rigorous environmental standards, reflecting a commitment to sustainable mining practices. Profits from the project could be reinvested in exploring larger copper deposits within Cuba, positioning the joint venture as a significant player in the region’s mining sector.