Aya Gold & Silver Reveals Progress on Zgounder Mine Expansion

Construction Update on Zgounder Silver Mine Expansion

Aya Gold & Silver Inc. (TSX: AYA; OTCQX: AYASF) has provided an important update on the progress of its Zgounder Silver Mine expansion, based in Morocco. As of the latest report, the project is nearing completion, with a remarkable 98% finished and fully funded.

Challenges Faced During Commissioning

The expansion has not been without its challenges. The engineering, procurement, and construction partner, Duro Felguera, faced unexpected difficulties during the commissioning of the hydraulic unit associated with the ball mill. This issue has highlighted the need for some rework on the hydraulic unit piping; however, it is important to note that this rework does not compromise the overall integrity of the ball mill or other vital equipment. Meanwhile, commissioning efforts on alternative subsystems are progressing well, with the crushing circuit now operational.

Project Timeline and Adjustments

In light of the necessary rework, Duro Felguera has been allowed a two-month extension to complete hot commissioning and ramp up the capabilities of the expanded plant. Despite this, key areas of the Zgounder expansion are reported to be advancing according to plan, including:

• The crushing circuit has successfully processed ore and routed it to the storage silo.
• Underground ramp construction between levels 1,925m and 1,900m is underway.
• The site is now equipped with renewable energy via a newly constructed 60kV power line.
• A new mobile workshop for underground operations is now operational.
• Primary ventilation systems are fully functional across all levels.
• The cemented backfill mixing station and sublevel piping have mechanically concluded preparations for commissioning.
• All four underground electrical substations are actively deployed.
• The water storage systems are now operational, featuring water dams and other infrastructures.
• The new tailings dam is in operation, with water recovery processes currently in place.
• The new base camp for personnel is complete and functional.
• A new assay laboratory is nearing completion, with operational plans set for the end of September 2024.

Future Production Guidance

Given the delay from the hot commissioning, the company has announced a review of its production guidance for 2024. Aya aims to provide a revised outlook based on construction progress and operational results by November 14, 2024, when the third-quarter financial results are released.

Statements from Leadership

Benoit La Salle, the President & CEO of Aya, stated, "While we are facing a slight delay in hot commissioning, I assure you that all critical aspects of the Zgounder Mine's expansion are on course, and the project remains within budget. We’re preparing for a robust finish this year and are gearing up for potentially impactful operational milestones and drill results that could bolster stakeholder value even further. We are optimistic that 2025 will mark an exceptional year as we complete the plant ramp-up process."

About Aya Gold & Silver Inc.

Aya Gold & Silver Inc. is recognized as a growing silver producer from Canada, with dedicated operations within Morocco. As the only publicly listed silver mining company on the TSX, Aya operates the high-grade Zgounder Silver Mine while also exploring promising properties along the South-Atlas Fault, which historically supported mining operations. Additionally, Aya supports its silver assets with the Tijirit Gold Project in Mauritania, which is advancing toward feasibility.

Committed to Sustainable Growth

The management team at Aya Gold & Silver places a strong emphasis on maximizing shareholder value by embedding sustainability within their operational, governance, and growth strategies.

For further information, interested parties should reach out to:

Benoit La Salle, FCPA, MBA
President & CEO
bnoit.lasalle@ayagoldsilver.com

Alex Ball
VP, Corporate Development & Investor Relations
alex.ball@ayagoldsilver.com

Frequently Asked Questions

What is the current status of the Zgounder Silver Mine expansion?

The expansion is 98% complete, with ongoing adjustments to the hydraulic unit commissioning.

Who is responsible for the construction of the expansion?

Duro Felguera is the engineering and construction partner overseeing the expansion project.

How has the company addressed the recent challenges?

Aya has provided a two-month extension for hot commissioning to address the rework needed on the hydraulic unit.

What production guidance can we expect from Aya?

Aya plans to review and update its 2024 production guidance in November 2024 based on construction progress.

What are Aya's main focuses moving forward?

Aya aims to enhance shareholder value through continuous operational advancements, sustainable practices, and successful exploration activities.

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