Rabat – Canadian mining company Aya Gold & Silver has filed an updated technical report estimating that its Boumadine gold and silver project in southeastern Morocco could have a value of $3.5 billion after taxes, based on its main price assumptions.
The report, filed on October 20 and announced on October 21, outlines plans for a mine that could operate for 14 years, four years longer than estimated in the previous assessment.
The company’s updated preliminary economic assessment estimates a 93% internal rate of return and a payback period of 0.7 years. These figures are based on assumed prices of $3,500 per ounce of gold and $50 per ounce of silver, alongside prices for zinc and lead.
The project’s estimated initial capital cost stands at $463 million.
Aya said the improved outlook reflects higher assumed metal prices, better payment terms for gold and silver, and an expanded mine plan. The company expects the project to produce an average of 348,000 ounces of gold equivalent annually during its first five years.
The planned mine would extract several metals, including gold, silver, zinc, and lead. Its processing plant would produce three concentrates containing zinc, lead, and pyrite, with much of the project’s projected revenue expected to come from precious metals.
Larger mineral resources
The updated assessment also includes a revised estimate of the project’s mineral resources as of February 28.
The company reported 8.6 million tonnes of indicated mineral resources containing an estimated 1.1 million ounces of gold equivalent, a 34% increase from the previous estimate. It also reported 45.4 million tonnes of inferred resources containing an estimated 4.3 million ounces of gold equivalent.
However, mineral resources are not the same as proven reserves, and their economic viability has not been established. Aya cautioned that the assessment remains preliminary and that there is no certainty its projections will be achieved.
Boumadine is part of Aya’s wider mining operations in Morocco. The company also operates the Zgounder silver mine and is working to expand its exploration and development projects along the Anti-Atlas fault.
The company said work on a feasibility study for Boumadine is underway. The project already has a mining license, according to the latest report.
