Zgounder Expansion Feasibility Study 73%
Complete
MONTREAL, Nov. 15, 2021 /PRNewswire/ -- Aya Gold & Silver Inc. (TSX: AYA)
("Aya" or the "Corporation") is pleased to report results for the
third quarter ended September 30,
2021. All amounts are in US dollars unless otherwise
stated.
Q3-2021 Highlights
- Silver production of 338,624 ounces ("oz"), a 198% increase
from Q3-2020
- Silver sales of 403,950 oz, a 396% increase from Q3-2020
- Revenue of $7.8 million, a 350%
increase from Q3-2020
- Operating cash flow for the period of $5.9 million, compared with negative operating
cash flow in Q3-2020
- Ore processed of 53,869 tonnes ("t"), a 107% increase from
Q3-2020
- Mill recovery of 81%, a 29% increase from Q3-2020
- Tonnes mined averaged 609 tonnes per day ("tpd") as operations
focused on development
- Successful completion of a C$70
million bought-deal public offering
- Production guidance increased to 1.55 million oz of silver
("Ag") following operational outperformance
- Preparation for the 2022 mine plan advancing well
- First fieldwork results from Imiter bis identified an over 4km
potential strike and 5 priority drill targets
- Continued advancement of the Zgounder expansion feasibility
study ("FS") and the Tijirit FS
- Enhanced financial position to $88
million of cash, cash equivalents and restricted cash
- Five drill rigs turning on Zgounder with resource estimate due
by year-end
- Ranked #12 on the 2021 TSX30 as a top-performing company, with
a 3-year share appreciation of +253%
- Inclusion in the VanEck Vectors Junior Gold Miners ETF (GDXJ)
& VanEck Gold Miners ETF (GDX)
Zgounder Expansion Feasibility Study
At quarter-end, the Zgounder FS was 73% complete and the
following milestones had been achieved:
- Process: 90% completed
- Hydrology: 95% completed
- Environment: 95% completed
- 40,703m of the scheduled
42,000m diamond drill program have
been completed
- The exploration database is expected to close in mid-November
to complete the resource update.
"The third quarter marks a year that the Aya team has been
working together, and we saw the benefit of this in our results,"
said Benoit La Salle, President
& CEO. "In the most challenging production quarter, we
continued the trend of strong operational performance, posted
record cash flow, closed a C$70
million financing, announced ongoing exploration success at
Zgounder and initial promising results from Imiter bis, all
while maintaining a heavy focus on mine development and advancing
two feasibility studies. This lays the groundwork for several
catalyst-rich quarters, starting with the updated resource estimate
for Zgounder."
Q3-2021 Operational and Financial Highlights
|
|
Three-month period
ended
September 30,
|
|
Key Performance
Metrics
|
|
2021
|
2020
|
% Variation
|
Operational
|
|
|
|
|
Ore Processed
(tonnes)
|
|
53,869
|
26,034
|
107%
|
Average Grade (g/t
Ag)
|
|
242
|
217
|
11%
|
Mill Recovery
(%)
|
|
80.9%
|
62.6%
|
29%
|
Silver Ingots
Produced (oz)
|
|
154,331
|
93,691
|
65%
|
Silver in Concentrate
for Sale Produced (oz)
|
|
184,293
|
19,964
|
823%
|
Total Silver
Produced (oz)
|
|
338,624
|
113,655
|
198%
|
Silver Ingots Sold
(oz)
|
|
185,000
|
81,423
|
127%
|
Silver in Concentrate
for Sale Sold (oz)
|
|
218,950
|
-
|
NM
|
Total Silver Sales
(oz)
|
|
403,950
|
81,423
|
396%
|
Financial
|
|
|
|
|
Revenues
|
|
7,862,243
|
1,748,191
|
350%
|
Cost of Sales and Net
Profit Interest
|
|
4,772,246
|
1,516,440
|
215%
|
Gross
Margin
|
|
3,089,997
|
231,751
|
1,233%
|
Operating Income
(Loss)
|
|
1,017,868
|
(3,087,138)
|
133%
|
Net Earnings
(Loss)
|
|
1,287,812
|
(1,784,504)
|
172%
|
Operating Cash
Flows
|
|
5,973,146
|
(1,329,241)
|
549%
|
Cash and Restricted
Investments Cash
|
|
88,072,463
|
31,082,155
|
183%
|
|
|
|
|
|
Shareholders
|
|
|
|
|
Earnings (Loss) per
Share ("EPS") – basic & diluted
|
|
0.011
|
(0.021)
|
NM
|
Q3-2021 Exploration Highlights
Zgounder Exploration
The quarter saw the Corporation return high-grade assays that
defined the new Zgounder East Zone and expanded the down-dip and
on-strike continuity of Zgounder mineralization. These areas remain
open for future growth. Within the Zgounder East Zone, results
confirmed continuity along strike with notable high-grade intervals
such as holes ZG-21-40 and ZG-21-41 opening the zone at depth in
previously undrilled areas below 2,000m. Significant results such as
ZG-SF-21-25 extended Zgounder mineralized systems to the granite
contact within the exploration target and will be followed up in
Q4-2021. Additionally, hole ZG-SF-21-39 defined continuous
high-grade mineralization below current mine galleries and remains
open in both directions.
As a result of the positive results received year to date, the
2021 drill program at Zgounder was expanded from 35,000m to 42,000m
into year-end. In the quarter, 15,834m of diamond drilling were carried out for
a total of 40,703m completed to date
(excluding T28 drilling). Currently, five drills are operating at
Zgounder, three on surface and two at depth. The updated mineral
resource estimate remains on track for delivery before year-end and
will form the basis of the Zgounder maiden reserve estimate that
will support the feasibility study.
The Corporation has engaged Geotech to fly a VTEM™ heliborne
terrain, magnetic and radiometric geophysical survey over the
entire Zgounder Regional project before year-end.
Imiter bis Exploration
In the quarter, the Corporation's initial fieldwork program at
its Imiter bis Project identified a north-south structure
extending over four kilometers long. Highlight grades from 2021
surface grab and channel sampling programs include 15.42 g/t Au,
289 g/t Ag, 5.51% Cu, 31.23% Pb and 10.23% Zn, showing potential
for epithermal Au-Ag occurrence and copper-rich deposit. Five
priority drill target zones were identified, and a 4,000m diamond drill program began in
October 2021 on three of the
zones.
During the quarter, a detailed ground magnetic survey was
conducted over the same three zones together with a high-resolution
multi-spectral study, The Corporation will also fly Geotech's VTEM™
heliborne terrain, magnetic and radiometric geophysical survey over
the property before year-end.
Q3-2021 Zgounder Optimisation and Capital Projects
In the quarter, the Corporation ramped up its capital project
activities including refurbishment of the cyanidation plant,
replacement of the flotation plant cone crusher, ongoing
construction of a new underground explosive depot, and the start of
a new mine access at the 2,075m
level.
Mining operations benefited from a full quarter using the new
cut-and-fill stoping mining method and from easier extraction
because of the wider access bay. As a result of the heavy
development work in the quarter, mine extraction reached 609 tpd
with 50,836t of ore blasted. Preparation for the 2022 mine plan is
advancing well, with additional mining equipment being purchased to
continue the mechanization of mining operations.
Silver recovery in the quarter increased to 81% relative to 63%
for the same period in 2020. The slight decrease in Q3-2021
recovery compared to Q2-2021 is primarily due to a recovery rate of
79% at the cyanidation plant. Both issues are being addressed by
the construction of a 60,000m3 water retention basin and a
tailings thickener to minimize water discharge to the tailings dam.
Recovery at the cyanidation plant is expected to improve in
Q4-2021.
In the quarter, availabilities reached 87% and 89% for the
flotation and cyanidation plants, respectively. Availability, which
was impacted by a two-day planned shutdown of the flotation plant
and a two-day unplanned shutdown of the cyanidation plant, is
expected to continue to improve as maintenance processes
mature.
The technical information contained in this press release
pertaining to the Imiter bis Project was reviewed and approved
by David Lalonde, B. Sc, Head of
Exploration, designated as a Qualified Person under National
Instrument 43-101. The technical information in this press release
relating to the Zgounder Project was reviewed and approved by Dr.
Marc-Antoine Audet, Ph.D. P. Geo,
Geological Consultant, for accuracy and compliance with National
Instrument 43-101.
About Aya Gold & Silver
Inc.
Aya Gold & Silver Inc. is a
rapidly growing, Canada-based
silver producer with operations in the Kingdom of Morocco.
The only TSX-listed pure silver mining company, Aya operates the
high-grade Zgounder Silver Mine and is exploring its properties
along the prospective South-Atlas Fault, several of which have
hosted past-producing mines and historical resources. Aya's
Moroccan mining assets are complemented by its Tijirit Gold Project
in Mauritania, which is being
advanced to feasibility.
Aya's management team has been focused on maximising shareholder
value by anchoring sustainability at the heart of its operations,
governance, and financial growth plans.
For additional information, please visit Aya's website at
www.ayagoldsilver.com.
Forward-Looking Statements
This press release contains certain statements that constitute
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"), which reflects
management's expectations regarding Aya's future growth and
business prospects (including the timing and development of new
deposits and the success of exploration activities) and other
opportunities. Wherever possible, words such as "potential",
"extend", "grow", "broadened", "commitment", "planned", "expects",
"scheduled", "indications", and similar expressions or statements
that certain actions, events or results "may", "could", "would",
"might", "will", or are "likely" to be taken, occur or be achieved,
have been used to identify such forward-looking information.
Specific forward-looking statements in this press release include,
but are not limited to, statements and information with respect to
the exploration and development potential of Zgounder and the
conversion of Inferred Mineral Resources into Measured and
Indicated Mineral Resources, future opportunities for enhancing
development at Zgounder, and timing for the release of the
Company's disclosure in connection with the foregoing. Although the
forward-looking information contained in this press release reflect
management's current beliefs based upon information currently
available to management and based upon what management believes to
be reasonable assumptions, Aya cannot be certain that actual
results will be consistent with such forward-looking information.
Such forward-looking statements are based upon assumptions,
opinions and analysis made by management in light of its
experience, current conditions, and its expectations of future
developments that management believe to be reasonable and relevant
but that may prove to be incorrect. These assumptions include,
among other things, the closing and timing of financing, the
ability to obtain any requisite governmental approvals, the
accuracy of Mineral Reserve and Mineral Resource Estimates
(including, but not limited to, ore tonnage and ore grade
estimates), silver price, exchange rates, fuel and energy costs,
future economic conditions, anticipated future estimates of free
cash flow, and courses of action. Aya cautions you not to place
undue reliance upon any such forward-looking statements.
The risks and uncertainties that may affect forward-looking
statements include, among others: the inherent risks involved in
exploration and development of mineral properties, including
government approvals and permitting, changes in economic
conditions, changes in the worldwide price of silver and other key
inputs, changes in mine plans (including, but not limited to,
throughput and recoveries being affected by metallurgical
characteristics) and other factors, such as project execution
delays, many of which are beyond the control of Aya, as well as
other risks and uncertainties which are more fully described in
Aya's 2020 Annual Information Form dated March 31, 2021, and in other filings of Aya with
securities and regulatory authorities which are available on SEDAR
at www.sedar.com. Aya does not undertake any obligation to update
forward-looking statements should assumptions related to these
plans, estimates, projections, beliefs and opinions change. Nothing
in this document should be construed as either an offer to sell or
a solicitation to buy or sell Aya securities. All references to Aya
include its subsidiaries unless the context requires otherwise.
CONTACT: Benoit La Salle, FCPA
FCA, President & CEO, benoit.lasalle@ayagoldsilver.com;
Alex Ball, VP, Corporate Development
& IR, alex.ball@ayagoldsilver.com