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Rabat – Canadian precious metals mining company Aya Gold & Silver is reporting its 2021 production exceeded the company’s expectations. The company this month announced “strong 2021 operational results with record production of 1.6 million ounces at its Zgounder Silver Mine in the Kingdom of Morocco.”
Production marked a year-over-year increase of 120%, exceeding the company’s initial estimates, according to a press release.
Silver production in the above-mentioned mine reached 433,742 ounces in the fourth quarter of 2021 (Q4-2021), a 6% year-to-year increase.
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As mining operations hit between 1.65 and 1.80 million, the company projects annual growth of 8% in 2022, details the press release.
A 6% hike in silver prices is projected to further offset the company’s positive 2022 growth outlook. Silver is expected to settle at $12/oz.
The company is planning to expand its operations in the Zgounder region located in the central Anti-Atlas Mountains. With an initial exploration program set at $14 million, double the 2021 exploration budget, the expansion currently hinges on a feasibility study due to be completed in the first quarter of 2022.
The prospective mining operation will extend to the Zgounder, Imiter bis, and Boumadine regions, where the Canadian firm intends to extract more Moroccan silver.
Commenting on production output in 2021, ‘Aya’ President and CEO, Benoit La Salle called the results “recording-breaking,” adding that the Zgounder site is on its way to become a ‘multimillion silver producer’ in 2022.
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In addition to the expansion strategy, the corporation set up multiple sustainable goals. Responsible mining and bringing positive social impact to local communities are central to the company’s expansion strategy, specifies the same source.
The Zgounder is the second-largest silver mine in the north African country, following the Imiter Mine located in Tinghir in central Morocco, south of the High Atlas Mountain.
The Canadian mining firm operates exclusively in Morocco due to its large unexplored resources, stability, and infrastructure. The firm further cites a 5-year tax exemption, a 50% tax reduction for exporting mining companies, and state assistance as part of their motivation.
