PanTerra Gold Limited (ASX: PGI) of Australia has announced that the Cuban Government has approved a Joint Venture (JV) between its mining company, Geo Minera SA (“GMSA”) and PanTerra Gold Investments Limited (“PGIL”) to develop GMSA’s La Demajagua refractory gold/silver deposit on the Isle of Youth in the south of Cuba.
The development will be undertaken by the Cuban company, Minera La Victoria SA (“MLV”) in which a GMSA subsidiary will hold a 51% shareholding, and PGIL 49%. The incorporation of MLV and registration of the Joint Venture Agreement is expected to occur by June 30, this year.
PGIL is a subsidiary of PanTerra Gold Limited and is registered in the Cayman Islands.
After feasibility studies, MLV will develop an open-pit mine to produce approximately 60,000 tonnes per year of concentrate with an anticipated grade of around 47 grams per tonne of gold and 380 grams per tonne of silver (based on metallurgical tests).
PanTerra Gold’s mining consultants have finished a detailed review of the 55,000 m of drilling at La Demajagua, gold and silver deposit in Cuba which was previously completed by Canadian exploration companies.
The mining project is expected to last six years but could stretch for a further ten years with an underground operation.
MLV is expected to start a pre-feasibility study into the La Demajagua project as soon as Covid-19 pandemic restrictions subside.
PanTerra estimates the study would cost approximately $1.2-million and would be completed in approximately ten to 12 months.
GMSA’s subsidiary will be credited with US$13.5 million of share capital in MLV (51%) for the transfer to MLV of GMSA’s mining concession for the open pit operation.