MONTREAL, Aug. 13, 2021 /PRNewswire/ -- Aya Gold & Silver Inc. (TSX: AYA)
("Aya" or the "Corporation") is pleased to report another solid
quarter of operations, development and exploration performance for
the quarter ended June 30, 2021. All
amounts are in US dollars unless otherwise stated.
Q2-2021 Highlights
- Silver production of 439,149 ounces ("oz") in Q2-2021, a 219%
increase from Q2-2020
- Silver sales of 419,997 oz in Q2-2021, a 263% increase from
Q2-2020
- Revenue of $9.9 million in
Q2-2021, a 384% increase from Q2-2020
- Operating cash flow for the period of $5.5 million, compared with negative operating
cash flow in Q2-2020
- Ore processed of 56,318 tonnes ("t") in Q2-2021, an 89%
increase from Q2-2020
- Mill recovery of 82% in Q2-2021, a 24% increase from
Q2-2020
- Tonnes mined averaged 700 tonnes per day ("tpd") in Q2-2021,
representing full capacity
- Eight drill rigs turning on Zgounder with resource goal of 100
million oz of silver by end of 2021
- Completion of the Algold Resources Ltd. acquisition in
June 2021 for $13.4 million
- Zgounder expansion feasibility study progressing well
- Grant of seven new exploration permits in Morocco
- Robust financial position with $36.9
million of cash, cash equivalents and restricted cash
- Finalisation of sustainability report for the year 2020
prepared in accordance with the Global Reporting Initiative
Standards
"Our business operations went from strength to strength in the
second quarter, achieving planned mining capacity and posting
record quarterly production that contributed to record operating
cash flow for a third consecutive quarter. Zgounder continued to
deliver exceptional step-out drill results that extend the strike
east and offer potential to grow the resource beyond its current
resource envelope. With the Algold acquisition closed, we
have opportunistically broadened our portfolio of near-production
development assets. We also published an inaugural corporate
sustainability report, which establishes the baseline for future
ESG reporting and highlights our commitment to building trust with
stakeholders and achieving sustainable outcomes," said Benoit La Salle, President & CEO.
Q2-2021 Operational and Financial Highlights
|
Three-month period
ended
June 30,
|
|
Key Performance
Metrics
|
2021
|
2020
|
% Variation
|
Operational
|
|
|
|
Ore Processed
(tonnes)
|
56,318
|
29,797
|
89%
|
Average Grade (g/t
Ag)
|
297
|
217
|
37%
|
Mill Recovery
(%)
|
82.0%
|
66.1%
|
24%
|
Silver Ingots
Produced (oz)
|
174,786
|
101,321
|
73%
|
Silver in Concentrate
for Sale Produced (oz)
|
264,363
|
36,352
|
627%
|
Total Silver
Produced (oz)
|
439,149
|
137,673
|
219%
|
Silver Ingots Sold
(oz)
|
163,499
|
115,642
|
41%
|
Silver in Concentrate
for Sale Sold (oz)
|
256,498
|
-
|
NM
|
Total Silver Sales
(oz)
|
419,997
|
115,642
|
263%
|
|
|
|
|
Financial
|
|
|
|
Revenues
|
9,873,276
|
2,040,753
|
384%
|
Cost of Sales and Net
Profit Interest
|
4,922,434
|
2,703,983
|
82%
|
Gross
Margin
|
4,950,842
|
(663,230)
|
846%
|
Operating Income
(Loss)
|
1,993,848
|
(1,423,697)
|
240%
|
Net Earnings
(Loss)
|
250,693
|
(1,194,493)
|
121%
|
Operating Cash
Flows
|
5,493,640
|
(895,512)
|
713%
|
Cash and Restricted
Investments Cash
|
36,874,048
|
14,410,577
|
156%
|
|
|
|
|
Shareholders
|
|
|
|
Earnings (Loss) per
Share ("EPS") – basic & diluted
|
0.003
|
(0.015)
|
NM
|
*NM – Not
meaningful
|
|
|
|
Q2-2021 Exploration Highlights
In the quarter, over 16,000 meters of drilling continued to
define the previously established exploration target and the
eastern extension of Zgounder. To date, 26,000 meters of the
35,000-meter exploration program have been drilled on the Zgounder
mine permit. Currently, eight drill rigs are operating at Zgounder,
four from surface and four within the mine. The program is on track
for completion on time and budget.
During the period, an on-site geological team initiated
exploration field work on the Imiter bis property in
Morocco.
Q2-2021 Optimisation of Operations
In the second quarter, ongoing calibration of mining operations
resulted in planned mining capacity of 700 tpd for a total of
63.4kt of ore blasted. These improvements were primarily due to the
successful transition of the mining method from shrinkage to
cut-and-fill stoping and to the commissioning of new mining
equipment.
Silver recovery for the flotation plant improved to 84.2% in
Q2-2021 from 81.9% in Q1-2021. The slight decrease in Q2-2021
recoveries to 78.8% at the cyanidation plant compared to 83.7% in
Q1-2021 was expected and has been budgeted for during the hot
summer months.
Q2-2021 Operations Support
A number of capital investment projects are in progress.
Following its upsizing, construction of the water storage basin is
now expected by year-end 2021. In the meantime, new water wells
have been commissioned to support operations. Refurbishment of the
cyanidation plant continued in the quarter. As part of a plan to
increase the crushing capacity, equipment has been ordered for 2021
delivery.
Zgounder Development
The feasibility study for the expansion of the Zgounder Silver
Mine is progressing well: several trade-off studies have already
been completed. The geo-technical fieldwork is nearing completion,
and other major items remain on schedule.
About Aya Gold & Silver
Inc.
Aya Gold & Silver Inc. is a
rapidly growing, Canada-based
silver producer with operations in the Kingdom of Morocco.
The only TSX-listed pure silver mining company, Aya operates the
high-grade Zgounder Silver Mine and is exploring its properties
along the prospective South-Atlas Fault, several of which have
hosted past-producing mines and historical resources. Aya's
Moroccan mining assets are complemented by its Tijirit Gold Project
in Mauritania, which is being
advanced to feasibility.
Since its appointment in mid-2020, Aya's management team has
been focused on maximising shareholder value by anchoring
sustainability at the heart of its production, resource,
governance, and financial growth plans.
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 "potential",
"extend", "grow", "broadened", "commitment", "planned", "expects",
"scheduled", "indications", 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
accuracy of Mineral Reserve and Mineral Resource Estimates
(including, but not limited to, ore tonnage and ore grade
estimates), silver price, 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 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.
Benoit La Salle, FCPA FCA,
President & CEO, benoit.lasalle@ayagoldsilver.com; Alex Ball, VP, Corporate Development & IR,
alex.ball@ayagoldsilver.com