As one of the first Canadian mining companies to take on projects in Cuba, Holmer Gold Mines (ASE) intends to continue concentrating its efforts in the Carribbean nation, despite the disapproval of some American politicians.
“We think the geological potential in Cuba is enormous,” Holmer President Sethu Raman told shareholders at the annual meeting, adding that this potential should allow the company to execute its strategy of “growth through discoveries.”
Holmer is active on several projects in Cuba, including the Loma Hierro silver deposit in the western portion of the island. Reserves there were recently bumped up to 850,000 from 500,000 tonnes. The average grade is 300 grams silver per tonne.
The higher estimates stem from a 3,000-ft. drill program which tested the silver gossan outcrops representing the southern extension of the 5-million-oz. silver deposit Holmer geologists discovered in late 1994.
The silver mineralization at Loma Hierro is associated with a lateritic gossan, predominantly limonite and hematite, and it is said to be the first such deposit identified in the world. Tabular and flat-lying, the deposit is amenable to open-pit mining, with a waste-to-ore stripping ratio of less than 1-to-1.
Preliminary metallurgical assessment indicates the mineralization can be readily treated, with recoveries in the range of 94%.
Caledonia Mining (TSE) can earn up to half of Holmer’s 50% interest in its Cuban properties, including Loma Hierro.
In other news, drilling is under way at Holmer’s San Fernando property in central Cuba. Geophysical and geological surveys have outlined three priority drill targets for base metals, gold and silver.
The base metal target was tested earlier this year, with a drill hole returning 3.25 metres of massive sulphides assaying 18.54% zinc, 0.18% copper and 0.32% lead, plus 7.93 oz. silver and 0.05 oz. gold per tonne. This was followed by a 100-metre-wide stringer zone.
In late July, Homer expects to sign final agreements with GeoMinera, the Cuban state-owned mining company. The agreements cover four concessions in western Cuba.
Holmer added two new directors to its board: Douglas Lewis, former solicitor-general of Canada, and Tor Jensen, a well-known mining engineer.
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