Aya Gold & Silver accelerates its Boumadine mining project.
Aya Gold & Silver Advances Boumadine Mining Project in Morocco
The mining project at Boumadine, undertaken by the Canadian company Aya Gold & Silver in Morocco, is entering a new phase. Benoit La Salle, the company’s President and CEO, announced that the first infrastructure work sites for the future gold and silver complex will commence in the fourth quarter.
This milestone follows the publication of an updated preliminary economic study that significantly increases the project’s value. The Net Present Value (NPV) is now estimated at $3.5 billion, approximately 32.6 billion dirhams, up from $1.7 billion in the previous assessment.
The Internal Rate of Return (IRR) now stands at 93%, compared to 40% previously. However, these indicators depend on the company’s assumed prices for gold and silver, estimated at $3,500 per ounce for gold and $50 per ounce for silver.
Boumadine Aims for 10,000 Tons of Ore Per Day
According to projections presented by Aya Gold & Silver, the project could operate for a duration of fourteen years, processing around 10,000 tons of ore per day.
Initially, the company plans to undertake the essential works needed to establish basic infrastructure. This includes projects related to energy supply, water resources, mining residue storage facilities, and living quarters for personnel.
These works will precede a feasibility study expected in the second half of 2027, a step that will further clarify the technical and economic parameters of the future project.
Aya Gold & Silver currently estimates the necessary investment expenditures at about CAD 450 million, or nearly 3 billion dirhams.
To finance this development, the company envisions mobilizing various sources, including its own cash flow, loans from public financial institutions, and pre-financing mechanisms that could be provided by future buyers of the production.
Zgounder Already Exceeding Nominal Capacity
In parallel with the Boumadine project, Aya Gold & Silver continues to ramp up production at its Zgounder silver mine in the Taroudant province, which is presently its main operating asset.
According to Benoit La Salle, the new facility was built within eighteen months, adhering to the planned timeline and budget. It now processes approximately 4,000 tons of ore per day, while its original nominal capacity was set at 2,700 tons per day.
The company is now exploring the possibility of extending the mine’s lifespan, currently estimated at eleven years, while increasing its processing capacity to 5,000 or 6,000 tons per day.
Aya Gold & Silver projects an annual output of around six million ounces of silver. The cash costs are estimated at about $16 per ounce, while all-in sustaining costs would be close to $19 per ounce.
At current silver prices, the company estimates that Zgounder could generate approximately $250 million in annual cash flow.
Morocco Highlighted for Its Mining Environment
The development of Boumadine and the expansion of Zgounder is part of the Canadian group’s strategy to enhance its presence in Morocco’s mining sector.
Benoit La Salle presents the Kingdom as a favorable environment for the extractive industry, emphasizing its historical experience in mining, the availability of a skilled workforce, and the presence of institutions as well as major national groups active in the sector.
He notably cites OCP and Managem as key players shaping the Moroccan mining ecosystem. He also points out that mining activities account for less than 1% of the national economy.
According to him, the existing historical expertise and specialized industrial fabric are crucial for the development of new mining projects.
Permits Viewed as More Quickly Obtained
The head of Aya Gold & Silver has also highlighted the conditions for obtaining mining permits in Morocco. He claims that authorizations can be secured within two to three months, compared to considerably longer timelines in Canada and France.
He also notes that permits issued by the state do not include royalties or free equity participation from the state, as per the conditions outlined by the CEO.
For Aya Gold & Silver, these characteristics, combined with the available mineral resources and expertise, enhance Morocco’s attractiveness for investments in mineral extraction and processing.
With Boumadine, the group is preparing for a second growth engine centered around gold and silver, while Zgounder continues to increase its volumes. The next major step will be the feasibility study planned for 2027, which will outline the technical and financial aspects of the project before its development.
