MONTREAL, Jan. 19, 2022 /CNW Telbec/ - Aya Gold & Silver Inc. (TSX: AYA)
("Aya" or the "Corporation") is pleased to report strong 2021
operational results with record production of 1.6 million ounces at
its Zgounder Silver Mine in the Kingdom of Morocco. This represents a 120% year-over-year
increase in production. All dollars are in U.S. dollars, unless
otherwise stated.
2021 Fourth Quarter Production Highlights
- Silver production totalled 433,742 ounces ("oz") in Q4-2021, a
6% increase compared with Q4-2020
- Silver recovery of 82.4% in Q4-2021, and 2021 silver recoveries
of 82.1%, in line with 2021 guidance
- Quarterly head grade of 248 grams per tonne ("g/t") silver
("Ag") and 2021 head grade of 269 g/t Ag, above 2021 guidance
- Increased throughput to 716 tonnes per day ("tpd") in Q4-2021,
exceeding design capacity
- Record silver production of 1.6 million oz in 2021, exceeding
the 2021 production guidance
2022 Zgounder and Corporation Outlook
The Corporation's 2022 outlook outlines continued silver
production growth, coupled with an acceleration of its ESG
reporting and metrics for 2022 as part of the Corporation's
transformation and growth plan.
- Silver production of between 1.65 and 1.80 million oz, an 8%
increase compared to 2021
- Silver cash cost of $12/oz, a 6%
increase compared to 2021 cost guidance that is mainly driven by
increased investment in the mine's health and safety plan and
procedures
- Initial exploration program of $14
million, $6.4 million of which
is allocated to Zgounder
- Completion of the Zgounder expansion feasibility study in
Q1-2022
- Ongoing roll-out of Zgounder's ESG action plan with a
particular focus on health and safety
- Sustainability reporting in accordance with Global Reporting
Initiative ("GRI") Standards
- Delivery of the Tijirit feasibility study expected in
Q2-2022
- Drilling priority on Zgounder, Imiter bis, and Boumadine
properties
"2021 was a record-breaking year for the Corporation, exceeding
2021 guidance for production, mining and plant
throughput," said Benoit La
Salle, President & CEO. "With a solid foundation set in
2021, this year's guidance is catalyst-packed as we deploy our
long-term growth strategy and speaks to the strong execution and
ongoing measures taken by our team to improve efficiencies and
ensure its sustainable development. We expect to continue to
demonstrate Zgounder's potential with our 2022 drilling program and
a robust expansion feasibility study that will provide a clear path
to becoming a multimillion-ounce silver producer."
Full Year and Fourth Quarter 2021 Production
Highlights
|
Q4-2021*
|
2021*
|
Tonnes
processed
|
65,855
|
224,515
|
Average grade (g/t
Ag)
|
248
|
269
|
Silver ingots
produced (oz)
|
172,654
|
692,392
|
Silver in concentrate
for sale produced (oz)
|
261,087
|
908,254
|
Total silver produced
(oz)
|
433,742
|
1,600,646
|
*2021 numbers are
preliminary and are subject to final adjustment.
|
Fourth Quarter 2021 Updates
Operations
Silver recovery increased to 82.4% relative to 78.9% for the
same period in 2021. The increase in Q4-2021 recovery relative to
80.9% in Q3-2021 is due to a higher silver recovery of 82.1% at the
cyanidation plant as the dry season subsided, as expected.
In the quarter, plant availability reached 89% and 95% for the
flotation and cyanidation plants, respectively. Availability was
affected by a four-day planned shutdown at the flotation plant at
the end of December.
During the fourth quarter, work focused on the commissioning and
ramp-up of a new cone crusher at the flotation plant, which
provided a 15% increase in throughput, resulting in a global
milling rate of 716 tpd for the quarter. A major planned
shutdown was successfully executed. Definition drilling was
conducted to further refine the mine resource model and to improve
head grade forecasting. Preparations are ongoing for the arrival of
the mining contractor responsible for mine development necessary
for the expansion.
Exploration
Zgounder
In the fourth quarter, the Corporation completed 6,173 meters
("m") of drilling at Zgounder. A total of 55,449m of drilling
were completed in 2021, 41,932m of
which were included in our December
2021 resource update. Zgounder remains open with potential
to expand existing resources at depth and strike extensions to the
east.
Imiter bis
A drilling program totalling 4,381m was conducted on Imiter bis before
year-end over four target areas comprising the Middle Zone, the
South Zone, the Central Zone, and the North-East Zone. Results are
expected in February 2022.
Additionally, four trenches were completed for a total of
215m with the aim of testing areas
showing malachite at surface and obtaining a greater appreciation
of the project geology. The geophysical airborne survey, which was
delayed due to COVID-related border issues, is expected to begin
before the end of Q1-2022.
Boumadine
Following a review of optimal processing methods in Q4-2021, a
7,500m drill exploration program has
been planned for H2-2022 at the Boumadine polymetallic property,
located in east central Morocco.
Initial flotation tests were promising despite initial processing
challenges related to high sulfide ore. Gold recoveries will
continue to be evaluated through oxidative test work in 2022.
Execution of the drill program is predicated on positive
metallurgical test results. The geophysical airborne survey will be
flown over Boumadine following the fly-over of Zgounder.
2022 Zgounder Outlook
Zgounder
|
2022
Guidance
|
Silver production (M
oz)
|
1.65 –
1.80
|
Silver cash cost
($/oz)
|
12
|
Recovery
(%)
|
84
|
Tonnes processed
('000 t)
|
245
|
Average grade
processed (g/t Ag)
|
264
|
|
|
Initial
Development Expenditures
|
(millions of
US$)
|
Initial exploration
budget
|
6.4
|
Feasibility
studies
|
1.4
|
In preparing the 2022
guidance, an exchange rate of $1.28 Canadian dollar to the US
dollar was assumed.
|
2022 Exploration Program
An initial exploration program of $14
million has been set for 2022, more than twice the
exploration budget set last year. The goal is to complete
72,500m of drilling, of which 60%
will be dedicated to exploration and the addition of new resources
and reserves. Our three priority target properties include Zgounder
(30,000m), Imiter bis
(10,000m), and Boumadine
(7,500m).
At Zgounder, 22,500m of the
30,000m diamond drill ("DDH") program
will build on the successful 2021 drill program and has been
designed to expand existing resources at depth and test strike
extensions to the east. A total of 7,500m of reverse-circulation ("RC") drilling and
DDH will be completed on the Zgounder Regional permits in Q2-2022
to follow up on the targets identified by the airborne geophysics
and mapping programs.
A maiden reserve statement will be released in Q1-2022 that will
incorporate 2021 drill results carried out at Zgounder until
November 2021; and will underpin a
feasibility study that expands the total production capacity to
2,700 tpd.
The 10,000m DDH drill program
scheduled at Imiter bis in 2022 will test new prospective areas
defined by the airborne survey and follow-up on the Q4-2021 drill
results. The bulk of the program will be carried out on three of
the priority areas.
At Boumadine, an initial 7,500m
drill exploration program has been established to test priority
areas identified by the spectral survey and historical drilling.
These areas will be enhanced by targets generated by the upcoming
airborne geophysics.
Additionally, a 25,000m drilling
program will be carried out on the Tijirit Project in H1-2022. The
program, which will consist of 3,000m
DDH and 22,000m RC drilling, has the
aim of converting resources into reserves in support of the
feasibility study.
2022 Sustainability Outlook
The Corporation has anchored responsible mining and positive
social impact at the heart of its transformational growth plan and
sustainable impact strategy. The team will continue to develop its
ambitious ESG action plan, with a focus on the following:
- Implementing its environment and social management system,
which is based on ISO 45001 and 14001 standards and is aligned with
the International Finance Corporation ("IFC") Performance
Standards
- Enhancing occupational health and safety measures and
procedures through capital investment initiatives including
emergency preparedness, refurbishment of the entire electrical
system, training, and external audits
- Implementing the Global Industry Standard on Tailings
Management and continuing water monitoring
- Promoting local wealth creation through a five-year sustainable
economic development plan that has been created in partnership with
the Biotechnology for Sustainable Development in Africa Foundation
("BDA")
-
- The plan empowers local agribusinesses that focus on the
valorisation of local biodiversity and facilitates their direct
access to international markets
- Expanding and improving ESG disclosure and metrics including
Scope 1 and 2 greenhouse gas emissions, and reduction of carbon
footprint through the ONYEN reporting platform
2021 Financial and Operational Results
The 2021
financial and operational results will be released before market on
March 30, 2022.
Marc-Antoine Audet, Ph.D. P. Geo,
Geological Consultant, and David
Lalonde, B. Sc, Head of Exploration, both designated as
Qualified Persons under National Instrument 43-101, have reviewed
and approved the technical information contained in this press
release.
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 "outlook",
"growth", "acceleration", "expected", "increase", "planned",
"will", "completion", "scheduled", "potential", "estimates",
"continue", "anticipate", "to establish", "does not
anticipate", "believe", "intend", "ability to" 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 capacity to produce between 1.65
and 1.8 million oz of silver, the capacity to arrive at a cash cost
of $12/oz, the capacity to execute on
an exploration program of $14
million, the capacity to finalize the Zgounder expansion
feasibility study, the capacity to roll-out the Company's ESG
action plan, the capacity to deliver the Tijirit feasibility study,
capacity to produce and deliver various engineering studies and
technical reports , the capacity to convert Inferred Mineral
Resources into Measured and Indicated Mineral Resources or into
reserves, 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
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.
SOURCE Aya Gold & Silver
Inc