It’s official: Joutel inks Cuban deal

After 16 months of detailed evaluations and negotiations, Toronto-based junior Joutel Resources (TSE) has signed 11 exploration agreements with the Cuban government.

he agreements give Joutel the exclusive prospecting, exploration and exploitation rights for precious and base metals on properties comprising about 486,000 hectares.

“These are the first mineral exploration agreements made by the Republic of Cuba with a foreign company,” noted Antonio de los Reyes, vice-minister of basic industry, at a ceremony witnessed by The Northern Miner. Reyes signed the agreements in his role as president of Geominera S.A., a government entity formed to manage the agreements with Joutel and other foreign companies.

Joutel Chairman Hugh Harbinson was jubilant about the agreement, citing it as a clear example of “the goodwill and strengthening relationship between Canada and Cuba.”

The ceremony, held at the office of the Ministry of Basic Industry, was attended by Cuban Vice-president Pedro Miret and Mark Entwistle, Canada’s newly appointed ambassador to the country. Also on hand were officials from several of the Cuban provincial mining enterprises and senior ministry officials.

The agreements cover 11 project areas in three concessions — Santa Clara, Camaguey and Sierra Maestra — situated in the central and eastern parts of the island. More than 350 occurrences, including several deposits, have been catalogued. One such deposit, the Antonio, in the Santa Clara area, contains 2.7 million tonnes grading 1.64% copper, 3.87% zinc, 20 grams silver per tonne and minor gold values.

The deals provide for three stages of evaluation: prospecting; detailed exploration to determine economic feasibility; and mine development. Joutel, the operator, is financing the first stage of work, which is estimated to cost about US$1.3 million. Development and exploitation will be shared 50-50 with Geominera. Profits will also be split down the middle, with Joutel retaining the right to repatriate all its profits and dividends. Joutel has up to four years to carry out regional exploration and prospecting; after that point, it must reduce its holdings to specific properties. President Charles Page told The Northern Miner that financing for the project should be completed very soon and that the first phase of exploration should begin in September.

During the initial phase, Joutel plans to carry out Cuba’s first airborne and ground geophysical surveys, using electromagnetic techniques used in Canada. Follow-up diamond drilling will enable Joutel to select areas for the second phase of detailed evaluation. Some areas could be drilled as early as late September.

Metall Mining (TSE) has the right to earn a 25% direct interest in one of Joutel’s polymetallic plays. It must pay Joutel $150,000 and spend $1 million on exploration over four years.

The deal should pave the way for other Canadian juniors such as Republic Goldfields (VSE), Holmer Gold Mines (ASE) and Macdonald Mines Exploration (CDN) — all of which have agreements pending with the Cuban government.