MacDonald Mines signs agreement for two Cuban gold

The Cuban state-owned company Geominera S.A. and MacDonald Mines Exploration (CDN) will jointly develop two gold properties in the Caribbean country.

The concessions, both of which are in Camaguey province, about 750 km east of Havana, comprise the Florencia mine and a large exploration region known as Florencia-Jobabo.

Previous work at the mine included surface work, diamond drilling, the sinking of an 85-metre vertical shaft, and 1,200 metres of underground development. Reserves in the Main lens (immediately around the shaft area to a depth of 100 metres) are estimated at 185,860 tonnes grading 9.1 grams gold per tonne. MacDonald is compiling historical data on the property and plans to drill 2,500 metres. The program is designed to resample mineralization in the Main lens and test for down-plunge extensions and other lenses. The Florencia-Jobabo region covers 2,000 sq. km and contains a large number of gold occurrences and geochemical anomalies. The company is compiling information from the area, which will be followed by an airborne geophysical survey.

Over the next year, MacDonald plans to spend US$350,000 exploring the Florencia mine and US$450,000 exploring the Florencia-Jobabo region. Funding will come from proceeds of a previously announced private placement. After MacDonald completes the first-year programs, Geominera will contribute to all additional expenditures and have a 51% interest in the Florencia mine and a 50% stake in the Florencia-Jobabo region.