MONTREAL, Nov. 15,
2022 /CNW Telbec/ - Aya
Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF)
("Aya" or the "Corporation") is pleased to report interim financial
and operational results for the third quarter ended September 30, 2022. All amounts are in US dollars
unless otherwise stated.
Highlights
- Strong operations including record mill and mine
throughput:
-
- Milled a record throughput of 758 tonnes per day ("tpd") in
Q3-2022 with a monthly record of 785 tpd in September 2022
- Mined a record throughput of 825 tpd in Q3-2022 with a monthly
record of 941 tpd in September
2022
- Produced 451,681 ounces ("oz") of silver ("Ag"), a 33%
improvement from Q3-2021
- Combined mill recovery of 86.2%, a 7% increase from
Q3-2021
- Silver sales of 419,760 oz, a 4% increase from Q3-2021
- Revenue of $7.2 million, a 9%
decrease from Q3-2021
- Operating cash flow for the period of $5.7 million, same as Q3-2021
- Cash cost per silver ounce sold of $14.03 compared to $11.41 in Q3-2021(1).
- Completed over 7,000 meters ("m") of drilling on the eastern
zone
- Launched drill program on Zgounder Regional, testing target
areas defined by the spectral and prospecting campaigns
- Exploration of rich regional portfolio located along the South
Atlas Fault:
-
- Completed 7,500m initial diamond
drill hole ("DDH") program at Boumadine and expanded budget twice
to 17,500m, to follow up on promising
results
-
- Intersected massive sulfide mineralized zones in many holes,
confirming extension of the Boumadine structures
- Received full assay results from Phase I DDH drilling program
on Imiter bis, together with final data from airborne geophysics
survey
- Advanced Zgounder production expansion on time and on
budget:
-
- Completed 2,266m of lateral
underground development year to date
- Commenced bulk earthworks on schedule
- Completed detailed design for the first phase of the new
tailings storage facility.
- Secured a $100 million debt
financing package, subject to customary documentation and
conditions precedent, with the European Bank for Reconstruction and
Development and Climate Investment Funds' Clean Technology Fund to
support expansion of Zgounder
- Solid financial position with $58.1
million of cash, cash equivalents and restricted cash
(2).
- Ranked 18th on the 2022 TSX30 as a top-performing stock with a
3-year share appreciation of 245%
(1)
|
The Corporation reports
non-GAAP measures, which include cash costs per silver ounce, which
are widely used in the mining industry as a benchmark for
performance, but do not have a standardized meaning and the methods
used by the Corporation to calculate such measures may differ from
methods used by other companies with similar descriptions. See
"Non-GAAP Measures" on pages 12 and 13 of the Corporation's Q3-2022
MD&A for a reconciliation of non-GAAP to GAAP
measures.
|
(2)
|
Non-GAAP Measures,
consisting of cash and cash equivalents of $55,582,119 and
restricted cash of $2,477,353 (September 30, 2021 balances of
$83,315,222 and $2,757,241 respectively).
|
"This was a very busy quarter where we continued our track
record of consistent execution while laying key building blocks for
long-term growth. Zgounder operations delivered second-highest
production with throughput hitting monthly mining records that
support the build-up of stockpiles for the new mill," said
Benoit La Salle, President and CEO.
"This quarter also began to showcase the depth of our exploration
pipeline, with an expanded drill program to follow up on high-grade
intercepts at Boumadine and drill programs at Zgounder Regional and
Tijirit, which also offer tremendous potential."
"In parallel, we remained laser-focused on rolling out the
Zgounder expansion plan which continued on time and budget during
the quarter. In October, we announced an ESG-linked $100 million debt financing package with EBRD for
the expansion of Zgounder that cements our position as a leading
African sustainable silver mining company. Looking ahead, our
strong development pace and disciplined operational execution
underpin a strong finish into year-end and continued momentum into
the new year."
Q3-2022 Operational and Financial Highlights
Key Performance
Metrics
|
|
Q3-2022
|
Q3-2021
|
Variation
'22 vs
'21
|
Operational
|
|
|
|
|
Ore Processed
(tonnes)
|
|
69,697
|
53,869
|
29 %
|
Average Grade (g/t
Ag)
|
|
232
|
242
|
(4 %)
|
Mill Recovery
(%)
|
|
86.2 %
|
80.9 %
|
7 %
|
Silver Ingots
Produced (oz)
|
|
184,629
|
154,331
|
20 %
|
Silver in Concentrate
Produced (oz)
|
|
267,052
|
184,293
|
45 %
|
Total Silver
Produced (oz)
|
|
451,681
|
338,624
|
33 %
|
Silver Ingots Sold
(oz)
|
|
174,243
|
185,000
|
(6 %)
|
Silver in Concentrate
Sold (oz)
|
|
245,517
|
218,950
|
12 %
|
Total Silver Sales
(oz)
|
|
419,760
|
403,950
|
4 %
|
Avg. Net Realized
Silver ($/oz)
|
|
17.12
|
19.46
|
(12 %)
|
Cash Costs per Silver
Ounce Sold (1)
|
|
14.03
|
11.41
|
23 %
|
Financial
|
|
|
|
|
Revenues
|
|
7,186,702
|
7,862,243
|
(9 %)
|
Cost of
Sales
|
|
6,412,530
|
4,772,246
|
34 %
|
Gross
Margin
|
|
774,172
|
3,089,997
|
(75 %)
|
Operating (Loss)
Income
|
|
(1,329,569)
|
1,017,868
|
(231 %)
|
Net (Loss)
Income
|
|
672,156
|
1,287,812
|
(48 %)
|
Operating Cash
Flows
|
|
5,700,895
|
5,678,979
|
- %
|
Cash and Restricted
Cash
|
|
58,059,472
|
88,072,463
|
(34 %)
|
|
|
|
|
|
Shareholders
|
|
|
|
|
Earnings (Loss) per
Share – basic
|
|
0.006
|
0.003
|
NM
|
Earnings (Loss) per
Share – diluted
|
|
0.006
|
0.003
|
NM
|
(1)
|
See footnote
(1) on first page.
|
Q3-2022 Operations Review
Mine & Milling Operations
During the third quarter, record mine and mill throughput of 825
tpd and 758 tpd, respectively, were achieved along with quarterly
production of 451,681 oz silver with a mill feed grade of 232 g/t
silver. A total of 75,907t were mined at a head grade of 216 g/t
silver with underground mine development being a major focus in the
quarter. Silver recovery was 84.5% at the flotation plant and 88.9%
at the cyanidation plant for an average recovery of 86.2% in the
quarter. Mill availabilities averaged 92.0% for the flotation plant
and 95.6% for the cyanidation plant. Due to the implementation of
effective water use measures, there were no water-related impacts
on production despite an exceptionally dry season compared to last
year.
As mine operations scale up to reach 2,700 tpd, management has
determined that additional definition drilling is required to
ensure predictable grades in stopes. Additional equipment and human
resources have been added to meet this objective. Additional
inventory on the Run of Mine ("ROM") pad will help maintain a more
consistent grade sent to the mill.
Infrastructure development continued to ramp up and reached
470m in September 2022, close to the 500m monthly objective for 2023-2024. New mine
levels were put online and will contribute to ensure mine ramp-up
in 2023, as per the mine plan. Underground mine production is
expected to accelerate in 2023 to accumulate a stockpile of
200,000t for the new plant commissioning in 2024.
Capital Projects
The bulk of capital projects completed in Q3-2022 are related to
mine infrastructures and earthworks for the new plant. Construction
of new housing was also completed to accommodate the increasing
manpower at site.
Zgounder Development
The focus in the third quarter was on accelerating the
development of the underground mine infrastructure to support the
Zgounder mine expansion. A total of 1,136m of permanent horizontal infrastructure was
completed in Q3-2022, for a total of 2,266m to date, in line with the planned ramp-up.
CMAC, a reputable Canadian mining contractor, began mobilization to
start construction of the vertical chutes in Q4-2022.
The quarter saw timely commencement of earthworks for the new
Zgounder processing plant.
The Corporation continued to advance the Zgounder expansion in
Q3-2022, which is on time and on budget, notably by achieving the
following items:
- Received quotations for 21 mechanical equipment packages,
including all key long-lead items, from a pre-approved list of
vendors
- Commenced bulk earthworks for the new process plant and haulage
road on schedule in August 2022 using
a well-established Moroccan earthworks contractor.
- The Corporation's aim is to complete additional camp upgrades
to meet peak construction occupancy by year-end to facilitate the
start of process plant erection in 2023.
- Completed detailed design for the first phase of the new
tailings storage facility, and launched a competitive Request For
Quotation process for its construction.
The Corporation and Groupement des Consultants et Ingénieurs du
Maroc are developing additional water storage facilities to
increase raw water storage capacity prior to commissioning of the
new process plant.
Q3-2022 Exploration
Zgounder
The third quarter saw the Corporation complete its DDH campaign
in the eastern zone. The objective was to increase and further
define the resources in the far eastern portion of the deposit for
the proposed open pit designation. Several holes were also drilled
to confirm the vertical and lateral continuity of known mineralized
envelopes.
A total of 7,111m were drilled at
Zgounder in Q3-2022, bringing the year-to-date total to
20,769m against a budgeted
22,500m. The program will be
completed in parallel to the 7,500m
drill program on Zgounder Regional in Q4-2022.
Zgounder Regional
The final data from the geophysical airborne survey of the
Zgounder Regional permits was received late in Q3-2022 and will be
combined with the mapping and hyperspectral data to generate new
drill targets. Drilling, which had been scheduled in the third
quarter, commenced in early October
2022 due to a slight delay in building the access road and
drilling platform. The Corporation will be testing five different
targets highlighted by the spectral and prospecting campaigns.
Mapping and prospecting continued in the third quarter. A total of
748 grab samples have been taken year to date, and several
geological targets are already emerging.
Boumadine
The final data from the geophysical airborne survey of the
Boumadine permits was received late in Q3-2022. Results will be
used to refine the 2023 infill and exploration programs.
The initial 7,500m DDH program was
completed in August 2022 on the
Central Zone, and was subsequently extended by an additional
10,000m to follow up the promising
results. By quarter-end, a total of 11,772m had been drilled. Results from the first
6,500m were released in September 2022 and include high-grade
intersections such as BOU-DD22-036, which returned 32.8m at 2.12 g/t Au; 233 g/t Ag; 8.4% Zn and
4.2% Pb. More results are expected in Q4-2022.
Imiter bis
The remaining assay results from the Imiter bis Phase I drill
exploration program were received in Q3-2022, together with the
remaining data from the geophysical airborne survey received late
in Q3-2022. Phase II drilling, which had been scheduled for
Q4-2022, will be postponed to 2023 to focus on Boumadine.
The technical information relating to the Zgounder, Boumadine
and Imiter bis Projects was reviewed and approved by David Lalonde, B. Sc, Head of Exploration,
designated as a Qualified Person under National Instrument
43-101.
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.
Aya's management team has been focused on maximising shareholder
value by anchoring sustainability at the heart of its operations,
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 "will", "achieve",
"plan", "expect", "continue", "increase", "accelerate",
"projected", "designed to", "aims to", "objective", "guidance",
extend", "growth", "advance", "expected", "increase", 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, executing on
the planned expansion at the Zgounder mine, 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 2021 Annual Information Form dated June 16, 2022, 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.
SOURCE Aya Gold & Silver
Inc