Shares of Aya Gold & Silver moved up 1.4% by 11:00 a.m. ET, giving the only TSX-listed pure silver mining company a market capitalization of C$896.5 million.
Located in the central Anti-Atlas mountains, Zgounder is considered the second most important silver mine in Morocco after the Imiter mine. Commercial production was reached in January 2019. Aya currently holds an 85% interest in the underground mine, with a state-owned enterprise holding the remaining 15%.
A feasibility study for an expanded mine operation was delivered in February 2022, supported by a high-grade reserve estimate of 8.6 million tonnes at 257 g/t silver for 70.9 million oz. of silver.
The proposed expansion would expand the mill’s nameplate capacity to 2,700 t/d from 700 t/d, thus quadrupling Zgounder’s silver production to 6.8 million oz. Completion of the expansion is expected in 2024.
