Update on Zgounder Silver Mine Expansion
Aya Gold & Silver Inc. (TSX: AYA; OTCQX: AYASF) has shared a significant update regarding the expansion of its Zgounder Silver Mine in Morocco. According to the latest report, the project is nearing its completion, boasting an impressive 98% finish and is fully funded.
Challenges Encountered During Commissioning
However, the expansion has encountered some challenges. The engineering, procurement, and construction partner, Duro Felguera, faced unforeseen issues while commissioning the hydraulic unit linked to the ball mill. This situation has necessitated some rework on the hydraulic unit piping. Fortunately, this rework does not affect the overall integrity of the ball mill or other essential equipment. On a positive note, commissioning efforts for alternative subsystems are progressing smoothly, with the crushing circuit now up and running.
Revised Project Timeline
Due to the required rework, Duro Felguera has been granted a two-month extension to finalize hot commissioning and enhance the capabilities of the expanded plant. Despite this delay, several key components of the Zgounder expansion are moving forward as planned, including:
- The crushing circuit has successfully processed ore and directed it to the storage silo.
- Construction of the underground ramp between levels 1,925m and 1,900m is currently in progress.
- A newly constructed 60kV power line now provides renewable energy to the site.
- A new mobile workshop for underground operations is operational.
- Primary ventilation systems are fully functional across all levels.
- The cemented backfill mixing station and sublevel piping have completed mechanical preparations for commissioning.
- All four underground electrical substations are currently in operation.
- The water storage systems are functional, including water dams and related infrastructure.
- The new tailings dam is operational, with water recovery processes actively in place.
- The new base camp for personnel is complete and operational.
- A new assay laboratory is nearing completion, with plans to be operational by the end of September 2024.
Future Production Outlook
In light of the delays associated with hot commissioning, the company has decided to reassess its production guidance for 2024. Aya intends to provide a revised outlook based on construction progress and operational results by November 14, 2024, coinciding with the release of the third-quarter financial results.
Leadership Statements
Benoit La Salle, President & CEO of Aya, remarked, "Although we are experiencing a slight delay in hot commissioning, I want to assure everyone that all critical aspects of the Zgounder Mine's expansion are on track, and the project remains within budget. We are preparing for a strong finish this year and are looking forward to potentially significant operational milestones and drill results that could enhance stakeholder value even further. We are optimistic that 2025 will be an exceptional year as we complete the plant ramp-up process."
About Aya Gold & Silver Inc.
Aya Gold & Silver Inc. is recognized as an emerging silver producer from Canada, with dedicated operations in 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 has historically supported mining activities. Additionally, Aya is advancing its Tijirit Gold Project in Mauritania toward feasibility.
Commitment to Sustainable Growth
The management team at Aya Gold & Silver is dedicated to maximizing shareholder value by integrating sustainability into their operational, governance, and growth strategies.
For more information, interested parties can contact:
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 currently 98% complete, with ongoing adjustments related to the hydraulic unit commissioning.
Who is overseeing the construction of the expansion?
Duro Felguera is the engineering and construction partner responsible for managing the expansion project.
How is the company addressing recent challenges?
Aya has granted a two-month extension for hot commissioning to manage the necessary rework on the hydraulic unit.
What production guidance can we anticipate from Aya?
Aya plans to review and update its production guidance for 2024 in November 2024, based on the progress of construction.
What are Aya's main focuses moving forward?
Aya aims to enhance shareholder value through ongoing operational improvements, sustainable practices, and successful exploration initiatives.
