The Boumadine project in eastern Morocco. Credit: Aya Gold & Silver
Canada’s Aya Gold & Silver (TSX: AYA) said a preliminary economic assessment (PEA) for its Boumadine polymetallic project in Morocco shows the company would need barely a year to recoup its investment if gold prices remain elevated.
At spot gold prices of $4,000 an oz., Boumadine has an after-tax net present value (NPV) of $3 billion, an internal rate of return (IRR) of 77% and a payback period of 1.2 years, Montreal-based Aya said Tuesday in a statement. The base case, which rests on gold averaging $2,800, would result in an NPV of $1.5 billion, an IRR of 47% and a payback of 2.1 years.
Aya, which owns 85% of Boumadine, envisions building six open pits and three underground mines over a projected mine life of 11.1 years. The overall strategy is to achieve an average production rate to maintain a processing throughput of 8,000 tonnes…
