MONTREAL, June 11, 2021 /CNW Telbec/ - Aya Gold
& Silver Inc. (TSX: AYA) ("Aya" or the "Corporation")
is pleased to announce the closing of the previously announced
acquisition of Algold Resources Ltd ("Algold") and an updated
mineral resources estimate for the Tijirit Gold Project ("Tijirit")
in Mauritania. All amounts are in
US dollars unless indicated otherwise.
Transaction Highlights
Following the close of the Algold acquisition,
- Aya controls 100% of Algold and is the 75% owner-operator of
Tijirit, with the remaining 15% owned by the Government of
Mauritania and 10% by Wafa Mining
& Petroleum
- Aya paid a total consideration of C$15.2
million which includes an issuance of 2,821,253 Aya shares
and payment of C$2.6 million in
cash
- Aya gains a high-grade gold ("Au") resource project and a
26-year mine permit covering more than 150 km2 in a
pro-mining jurisdiction that it knows well
- Aya has appointed Thierry Vergnol as President & General
Manager for Tirex S.A. Aya's local subsidiary, and Patrick Perez, as Project Director for
Tijirit
- Aya has launched a feasibility study ("FS") to assess the
potential for developing Tijirit
- Algold shares have been delisted from the TSX-Venture
Exchange
Resources Update – as of May 12,
2021
- Measured and Indicated ("M&I") mineral resources for the
Eleonore Zone increased by 127% to 214.7
K ounces ("oz") of Au compared to 94.2 K oz of indicated oz in March 2018
- Eleonore deposit remains open along strike and at depth
- M&I mineral resources for the Lily/Sophie Zones totalled
77.9 K oz, relatively unchanged from
75.2 K oz in 2018
- Lily/Sophie zones remain open along strike and at depth
"With the acquisition of Algold now complete, we can focus on
our Tijirit exploration and development efforts to immediately
deliver value for shareholders. We have already increased M&I
resources at Eleonore by 127%, and our team is mobilized to deliver
a feasibility study within the next twelve months. We have several
drill-ready targets generated by the first mineral resource since
2018. We look forward to leveraging our technical expertise and
financial strength to unlock value for all stakeholders," said
Benoit La Salle, President &
CEO.
"The Tijirit Project has terrific potential and offers all the
necessary conditions to create meaningful stakeholder value for the
people in Mauritania in addition
to benefitting further from the positive in-country foreign
investment climate. We look forward to deepening our relations and
local impact as we move Tijirit to the feasibility stage and
beyond," said Thierry Vergnol, President & General Manager of
TIREX S.A.
Transaction Details
Aya paid a total consideration of C$15.2
million that comprised
- 2,133,333 Aya shares issued to secured creditors
- 307,294 Aya shares and C$100,000
distributed to Algold unsecured creditors
- 294,946 Aya shares to Algold common shareholders
- 85,680 Aya shares and C$2.6
million in payments and advances in the context of the
restructuring
The final exchange ratio is 0.010601 of an Aya common share for
each Algold share. Algold shareholders will receive the resulting
Aya shares without action on their part.
All Aya shares received in conjunction with this transaction are
subject to a four-month hold period.
Mineral Resource Estimate
Table 1: Mineral Resource Estimate, Tijirit
(1-11)
Name
|
Cut-off (Au g/t)
|
Classification
|
Au
(g/t)
|
Tonnes
|
Ounces
|
Eleonore (includes
Eleonore North, Center, South and East)
|
1.5
|
Measured
|
4.53
|
292,000
|
42,600
|
Indicated
|
4.14
|
1,293,000
|
172,200
|
Measured &
Indicated
|
4.21
|
1,585,000
|
214,700
|
Inferred
|
3.21
|
2,718,000
|
280,500
|
Sophie and
Lily
|
0.4 /1.7
|
Measured
|
0.98
|
376,000
|
11,900
|
Indicated
|
0.94
|
2,193,000
|
66,000
|
Measured &
Indicated
|
0.94
|
2,569,000
|
77,900
|
Inferred
|
1.06
|
7,443,000
|
252,700
|
Total Eleonore/
Sophie/ Lily
|
Various
|
Measured
|
2.53
|
668,000
|
54,500
|
Indicated
|
2.13
|
3,485,000
|
238,100
|
Measured &
Indicated
|
2.19
|
4,154,000
|
292,600
|
Inferred
|
1.63
|
10,160,000
|
533,200
|
1. Resources were
estimated as at May 12, 2021.
|
2. The Independent QP
for this resources statement is Yann Camus, Eng., SGS Canada
Inc.
|
3. The mineral
resources are presented at a 0.4 g/t Au cut-off grade in
pits and 1.7 g/t Au cut-off grade under the pits, except
for Eleonore, where a global cut-off of 1.5 g/t Au was
applied.
|
4. The resources are
presented without dilution.
|
5. Whittle pits have
been used using a gold value of $1,500/oz.
|
6. Mineral resources
that are not mineral reserves do not have demonstrated economic
viability. This disclosure does not include economic analysis of
the mineral resources.
|
7. Totals may not add
up due to rounding.
|
8. No economic
evaluation of the resources has been produced.
|
9. This resource
estimate has been prepared in accordance with CIM definition
(2014).
|
10. Density used is
between 2.0 and 3.0 depending on the rock type and alteration based
on measurements.
|
11. Capping varies
from 3.5 g/t Au (Lily) to 45 g/t Au (Eleonore)
depending on extreme local grade
|
The resource estimate was prepared by SGS Canada Inc. Geological
Services with an effective date of May 12,
2021, using results from 693 RC drill holes totalling 87,765
meters, 69 DDH holes totalling 9,289 meters, 97 RC/DDH holes
totalling 16,727 meters and 20,243 meters of trenching carried out
on the property by Algold between 2016 and 2018 and by previous
operators Shield Mining and Gryphon Minerals from 2009 to 2012.
Notwithstanding the increase in gold ounces of almost 73% in the
M&I resource categories for Tijirit, no new NI 43-101
Technical Report will be released for Tijirit as the overall
increase in total resources is considered non-material for the
Corporation.
Hole
Type
|
Number
of Drill
Holes
|
Total
Length (m)
|
Number
of Assays
|
Sum of
Assayed Length
(m)
|
DDH
|
69
|
9,289
|
8,284
|
8,474
|
RC
|
693
|
87,765
|
66,112
|
94,572
|
RC/DDH**
|
97
|
16,727
|
7,907
|
7,120
|
Trenches
|
303
|
20,243
|
8,933
|
14,513
|
Total
|
1,162
|
134,024
|
91,236
|
124,679
|
**RC/DDH drill holes
that began as RC holes and finished as DDH holes
|
Launch of Tjirit Feasibility Study
Following the acquisition of Tijirit, Aya has launched a FS to
assess the potential for developing Tijirit. The following globally
recognised engineering consultants have been mandated to complete
the FS: Lycopodium Minerals Canada, SGS Canada Inc., DRA
Americas Inc., and GCIM.
The FS, which will initially focus on the Eleonore and Eleonore
East deposits, is scheduled for completion within the next twelve
months and envisages a base case scenario of a 1,000-tonne-per-day
("tpd") processing plant that can be easily expanded to 2,000 tpd.
The proposed initial flowsheet will comprise a conventional primary
crush and SAG milling circuit, followed by gravity gold recovery
and leaching.
A budget estimate of $5.6 million
has been established for the year in conjunction with Tijirit. The
following activities will take place:
- 15,000 meters of drilling to convert in-pit inferred resources
into the M&I categories and to expand the mineral resource
base, scheduled for completion in Q1-2022 (see Figures 1-3)
- A metallurgical test work program
- All engineering studies for the completion of the FS
- All field work programs such as geotechnical and
hydrogeological programs
Resumption of Activities at Tijirit Camp
In February 2021, Aya re-opened
the Tijirit exploration camp after a 1.5-year pause. Following some
repair work, the exploration team returned to the camp in
March 2021. Currently, a detailed
mapping of artisanal mining excavations is being carried out
involving a GPS survey, depth measurements, and sampling of
excavated material.
As part of the 2021 field work campaign, Aya is in the process
of securing the Eleonore and Eleonore East areas by digging a
trench around the zones and filling excavations created by
artisanal mining activity. Once the zones are secured, in
coordination with the government, Aya will launch the 2021 drill
exploration program and other field work (see Figures 2 and 3 in
Appendix).
Increasing Potential of the Tijirit Project
The 127% increase in M&I resources validates Aya's
geological interpretation of the Eleonore mineralization, in
addition to highlighting the potential for additional ounces from
targets that have only had limited exploration to date. Eleonore's
multiple high-grade, shear-hosted mineralized zones remain open
down-dip and along strike, with multiple areas in the immediate
area still untested (see Figure 2 in Appendix).
The Eleonore East zone, which extends over a three-kilometer
strike, is situated at approximately three kilometers northeast of
Eleonore. The zone is believed to offer the potential for further
high-grade discoveries within the mine lease that, with more
drilling, could rapidly be included in future mining plans (see
Figure 3 in Appendix).
Key Appointments – Tijirit Project
To lead the development of Tijirit, Aya has appointed Thierry
Vergnol as President & General Manager of TIREX
S.A. and recently engaged Patrick Pérez, MSc., P. Eng., as
Project Director for Tijirit. A French-Mauritanian national,
Thierry has been managing the Tijirit Project since 2017 and brings
over 20 years of business advisory experience to international
companies operating in Mauritania.
Patrick has more than 18 years of experience as a mining
professional including with Endeavour Mining, and DRA Americas.
Resource Estimation Methods
A modeling cut-off grade of 0.3 grams per tonne
("g/t") Au, a minimum thickness of two meters, and a minimum
accumulation of 1.2 meters g/t were used to delineate mineralized
volumes. The 2,973 two-meter composites were capped at grades
varying between 3.5 g/t Au and 45 g/t Au based
on local extreme grades. Only a few composites were capped, with
the gold loss due to the capping at 12% for the base case resource.
Densities are based on 5,628 readings from DDH holes. A density of
2.00 t/m³ was used for saprolite, and fresh rock was set to
2.7 t/m³ in the Lily zone, 2.8 t/m3 in the Sophie III
zone, 2.85 t/m³ in the Sophie II zone, 3.0 t/m³ in the
Sophie I zone, 2.86 t/m³ in the Eleonore North, Center and
South zones and 2.95 t/m³ in the Eleonore East zone.
The block model has a block size of 2 x 5 x 2.5 meters for
Sophie I-II-III and Eleonore; 2 x 5 x 2 meters for Eleonore East; 2
x 5 x 5 meters for Sophie III and 5 x 5 x 5 meters for Lily. With
the exception of Lily, block models are turned to conform to the
general orientation of the zones. Estimations were made by inverse
distance squared with ellipsoid influenced distances. Kriging was
also tested, and general results were very comparable. A total of
311 separate volumes were estimated with 311 composite sets. Two
estimation passes were used with ellipsoids of 75 x 75 x 25 meters
and 150 x 150 x 50 meters. The first pass uses a minimum of four
and a maximum of seven composites, with a limit of two per drill
hole. The second pass uses a minimum two and a maximum of seven
composites with a limit of two per drill hole, except for some
volumes with a minimum of one. The smoothing of the estimation was
tested in May 2017 and was found to
be adequate. The M&I categories have been outlined by hand on
longitudinal, based on drilling density. Drilling every 40 meters
(Eleonore North, Center, South and East and Sophie I), 45 meters
(Sophie II-III) and 50 meters (Lily) was classified as indicated;
and drilling every 30 meters (all except Lily) and 35 meters (Lily)
was classified as measured. Eleonore has a maximum interpolation up
to 100 meters. Other zones have interpolation up to 200 meters. All
zones have extrapolation limited to 45 meters.
Optimized open pits have been prepared to allow to constrain the
resource estimate. The assumptions include a gold price of
US$1,500/oz., mining recovery of 95%,
mining dilution of 5% (for Sophie/Lily) and 10% (for Eleonore),
processing recovery of 96% (for Sophie/Lily) and 97% (for
Eleonore), processing cost of $12.02/t, G&A cost of $3.69/t and an open-pit mining cost of
$1.41/t. For underground mining
costs, the current assumption is $40/t. Based on these assumptions, the
economically viable cut-off grades are 0.4 g/t Au in open
pits and 1.5 g/t Au under the pits. Accordingly, the
Corporation decided to retain COGs of 0.4 g/t Au in open
pits and 1.7 g/t Au for Sophie/Lily and a global COG of
1.5 g/t Au for Eleonore.
Quality Assurance / Quality Control (QA/QC)
Since the beginning of 2017, analytical work for drill core and
reverse circulation chips, geochemical samples and rock chip
samples has been carried out by the independent SGS Laboratories
Ltd. ("SGS") in Bamako, Mali. The
50-gram fire assay with ASS finish analytical services are
accredited by SANAS and are carried out with a quality assurance
protocol in line with ISO 17025:2005. Prior to 2017, drill
samples were prepared in the independent ALS Laboratory in
Nouakchott, Mauritania and
analysed at ALS Laboratories Ltd. in Loughrea, Co. Galway, Ireland, an ISO 17025 (2005)
Certified Laboratory.
In 2016 and 2017, samples were stored at Algold's field camp and
put into sealed bags until delivered by a geologist on behalf of
Algold to the respective laboratory where samples were prepared and
analyzed. As of August 2017, SGS
established a mobile sample preparation facility in the Tijirit
Camp. This preparation facility was run by SGS staff and used to
prepare the majority of samples. Algold's samples were logged in
the tracking system, weighed, dried, and finely crushed
to better than 70%, passing a 2-mm (Tyler 9 mesh, US Std.
No.10) screen. A split of 1,000 grams ("g") was taken and
pulverized to better than 85%, passing a 75-micron (Tyler 200 mesh)
screen, and a 50 g split was analyzed by fire assay with an AA
finish. Selected samples were re-analyzed using a 1kg cyanide leach
(Bottle Roll) using "LeachWELL" or a 1-kilogram ("kg") screen fire
assay method. These results automatically superseded the original
50 g fire assay result. Under Algold's quality assurance
and quality control (QA/QC) procedures, blanks, duplicates, and
certified reference material (standards) were routinely inserted
within the sample stream to monitor laboratory performance during
the preparation and analysis. Once results were received,
approximately 5% of the pulverised drill samples were randomly
selected, given new sample numbers, and sent to an SGS Lakefield
Laboratory for 50 g fire assay analysis. These umpire lab
check assays were compared with primary laboratory results to
monitor bias and accuracy of the Bamako facility.
Qualified Persons
This press release has been reviewed for accuracy under National
Instrument 43-101 guidelines by Yann
Camus, P.Eng., of the independent firm SGS Canada Inc. –
Geological Services (formerly Geostat), the qualified person under
NI 43-101 standards who supervised the preparation of the resource
estimate and approved all resource-related material in this press
release.
Francois Auclair, MSc, PGeo.,
Aya Gold & Silver's consulting
geologist and Qualified Person, and Patrick Pérez, MSc., P. Eng,
Aya Gold & Silver Tijirit
Project Director, are Qualified Persons as defined by NI 43−101
Standards of Disclosure for Mineral Projects. Francois Auclair & Patrick Pérez have
approved the scientific and technical disclosure in the news
release.
About Aya Gold & Silver
Inc.
Aya Gold & Silver Inc. is a
publicly traded Canadian company focused on the operation,
exploration, acquisition and development of silver and gold
deposits. Aya is currently operating mining and milling facilities
at its Zgounder Silver Mine, an 85%-15% joint venture between its
subsidiary, Zgounder Millenium Silver Mining SA, and the Office
National des Hydrocarbures et des Mines ("ONHYM") of the
Kingdom of Morocco.
Its mining portfolio also includes the Boumadine polymetallic
deposit located in the Anti-Atlas Mountains of Eastern Morocco which is also an 85%-15% joint
venture between Aya and ONHYM. Additionally, the Corporation's
portfolio includes the Amizmiz and Azegour properties, both 100%
owned, with gold, tungsten, molybdenum, and copper occurrences in
the center of the historical mining district of Morocco, and the Tijirit project located in
Mauritania.
For additional information, please visit Aya's website at
www.ayagoldsilver.com.
Forward-Looking Statements
This press release contains certain statements that constitute
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"), which reflects
management's expectations regarding Aya's future growth and
business prospects (including the timing and development of new
deposits and the success of exploration activities) and other
opportunities. Wherever possible, words such as "plans", "expects",
"does not expect", "deliver", "plan", "scheduled", "trends",
"indications", "potential", "estimates", "predicts", "anticipate",
"to establish", "does not anticipate", "believe", "intend",
"ability to" and similar expressions or statements that certain
actions, events or results "may", "could", "would", "might",
"will", or are "likely" to be taken, occur or be achieved, have
been used to identify such forward-looking information. Specific
forward-looking statements in this press release include, but are
not limited to, statements and information with respect to the
exploration and development potential of Zgounder and the
conversion of Inferred Mineral Resources into Measured and
Indicated Mineral Resources, future opportunities for enhancing
development at Zgounder, and timing for the release of the
Company's disclosure in connection with the foregoing. Although the
forward-looking information contained in this press release reflect
management's current beliefs based upon information currently
available to management and based upon what management believes to
be reasonable assumptions, Aya cannot be certain that actual
results will be consistent with such forward-looking information.
Such forward-looking statements are based upon assumptions,
opinions and analysis made by management in light of its
experience, current conditions, and its expectations of future
developments that management believe to be reasonable and relevant
but that may prove to be incorrect. These assumptions include,
among other things, the closing and timing of financing, the
ability to obtain any requisite governmental approvals, the
presence of artisanal miners, obtaining regulatory permits for on
site work, importing goods and machinery and employment permits,
the accuracy of Mineral Reserve and Mineral Resource Estimates
(including, but not limited to, ore tonnage and ore grade
estimates), the price of silver, the price of gold, exchange rates,
fuel and energy costs, future economic conditions, anticipated
future estimates of free cash flow, and courses of action. Aya
cautions you not to place undue reliance upon any such
forward-looking statements.
The risks and uncertainties that may affect forward-looking
statements include, among others: the inherent risks involved in
exploration and development of mineral properties, including
government approvals and permitting, changes in economic
conditions, changes in the worldwide price of silver gold and other
key inputs, changes in mine plans (including, but not limited to,
throughput and recoveries being affected by metallurgical
characteristics) and other factors, such as project execution
delays, many of which are beyond the control of Aya, as well as
other risks and uncertainties which are more fully described in
Aya's 2020 Annual Information Form dated March 31, 2021, and in other filings of Aya with
securities and regulatory authorities which are available on SEDAR
at www.sedar.com. Aya does not undertake any obligation to update
forward-looking statements should assumptions related to these
plans, estimates, projections, beliefs, and opinions change.
Nothing in this document should be construed as either an offer to
sell or a solicitation to buy or sell Aya securities. All
references to Aya include its subsidiaries unless the context
requires otherwise.
Appendix
SOURCE Aya Gold & Silver
Inc