MONTREAL, Dec. 1, 2022
/CNW Telbec/ - Aya Gold &
Silver Inc. (TSX: AYA), (OTCQX: AYASF) ("Aya" or the
"Corporation") is pleased to announce that its subsidiary, Zgounder
Millennium Silver Mining SA, has entered into a fixed price
Engineering, Procurement and Construction contract (the "EPC
Contract") with Duro Felguera S.A. ("DF") for construction of the
new Zgounder process plant in the Kingdom of Morocco. The price is fixed based on the USD
Dollar "USD", Euro "Euro" and Moroccan Dirham "MAD".
The Corporation is also pleased to announce it has awarded
contracts for the construction of its ball mill and crushing
equipment package, which are in line with the expansion development
EPC Contract Highlights
- A multicurrency fixed price EPC Contract of USD
$78 million1 for the
construction of a new 2,000 tonne per day ("tpd") processing plant.
This will bring the total milling capacity of the Zgounder Mine to
- DF has been involved in engineering and procurement of the
plant since March 2022. Detailed
engineering has been advancing through a limited notice to proceed
totaling over USD $6.6 million to
- Fabrication orders have been placed for long-lead items
including the ball mill, crushing equipment, Merrill-Crowe, silver
refinery, and counter-current decantation thickeners.
- The EPC Contract represents a significant portion of the total
scope of the expansion project. It does not include capital
expenditures such as the development of the underground and surface
mine infrastructure, the powerline and site electrical
distribution, the new tailings facility, and owner's costs.
- Processing plant earthwork and civil work are excluded from the
EPC Contract. Earthworks began on schedule in August 2022, led by the in-house construction
"We are delighted to announce two long-lead milestones including
the EPC contract and the ball mill purchase order, both of which
are critical to delivering the first silver pour by end of Q1-2024.
We are also very proud of our partnership with DF, a
long-established construction and engineering firm with deep
expertise in turnkey mining projects," said Benoit La Salle, President & CEO. "During
its over 160 years of mining experience, Spain-based DF has provided customised
solutions for mining projects globally. With a fixed price EPC
Contract in place, we are mitigating cost overrun risks for the
expansion which is proceeding on time and on budget."
"Overall, we are delighted with the team's progress to date
de-risking the project, both through project procurement and by
starting the earthworks with our in-house construction team and
local contractors," said Benoit La
Zgounder Expansion Update
As of September 30, 2022, the
Zgounder Silver Mine expansion was on schedule (see Figure 1) and
on budget with the following critical milestones achieved:
- Quotations for 21 mechanical equipment packages, including all
critical path long-lead items, have been received from a
pre-approved list of vendors.
- The Corporation launched a competitive tender process in
Q2-2022 for the supply and delivery of critical packages. The
following items have already been awarded:
- A 3.3 megawatt ball mill, where fabrication began this quarter
with a target delivery in Q3-2023 and cold commissioning in
- The entire crushing equipment package, including the primary
and secondary crushers, the feeders, and the secondary screen.
Fabrication began this quarter for expected delivery in
- The pre-leach and counter current decantation thickeners.
- The silver precipitation circuit (Merrill Crowe), retort oven and induction
- Timely commencement of earthworks:
- Bulk earthworks for the new process plant and haulage road
began on schedule in August 2022
using a well-established Moroccan earthworks contractor (see Figure
2). The Corporation's aim is to complete additional camp upgrades
to meet peak construction occupancy by year-end in order to
facilitate the start of process plant erection in 2023.
- Over 2,266 meters of permanent underground infrastructure
completed as at September
- Detailed design for the first phase of the new tailings storage
facility has been completed, a competitive request for quotation
process for its construction has concluded and contract award will
be awarded by year-end.
- Freshwater storage – development of additional fresh water
storage facilities to ensure sufficient water storage capacity
prior to commissioning of the new process plant.
The technical information contained in this news release has
been reviewed and approved by Patrick
Perez, P.Eng, Director of Technical Services, a Qualified
Person as defined under NI 43-101.
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
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 "expects",
"advance", "allow", "offer", "confirm", "expect", "potentially",
"ensure", "expand", ", "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, the capacity of the Company to continue to advance its
expansion plan on time and on budget and the capacity of the
Company to finance its expansion plans. 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 equity or debt
financing required for the construction of the expansion project,
the ability to obtain any requisite governmental approvals and
enter into necessary investment agreements to facilitate the
investment with certain concessions, 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
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 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
Foreign Exchange rates
used for conversion to USD: EUR/USD: 1.03544, MAD/USD:
SOURCE Aya Gold & Silver