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Canadian Mining Firm Achieves Major Silver Production Milestone in Morocco with $50M Growth Plan

Canadian Mining Firm Achieves Major Silver Production Milestone in Morocco with $50M Growth Plan
Thursday 02 January 2025 - 08:20 By: Dakir Madiha
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Montreal-based Aya Gold & Silver Inc. has marked a significant achievement by reaching commercial production at its expanded Zgounder silver mine in Morocco, while announcing plans for an additional $50 million investment in the country.

The company's new processing plant, which began construction in mid-2022, commenced ore processing on November 4, 2024, achieving its first silver pour on November 27. By December 29, the facility had declared commercial production, demonstrating remarkable efficiency in its ramp-up phase.

During a thirty-day evaluation period ending December 29, the facility processed 45,683 tons of ore, operating at an average rate of 84 tons per hour with 75% availability. This translated to a daily processing rate of 1,523 tons, representing 76% of nameplate capacity, while maintaining a 79% silver recovery rate.

Recent performance metrics showed significant improvements, with mill throughput averaging 1,834 tons per day between December 19-29, and reaching a peak of 2,152 tons on December 27. During this period, mill availability increased to 86% while maintaining consistent silver recovery rates.

The expansion has dramatically increased the mine's annual production capacity to 8 million ounces, establishing it as Morocco's second-largest silver mine after Imider, operated by Managem. CEO Benoit La Salle revealed in an interview with Asharq Business that the company's total investment in Morocco has reached $250 million since operations began.

"With over 600 full-time employees, a fully funded expanded operation and a strong financial foundation, Aya is well positioned to support its growth while establishing a new standard for innovative ESG financing in the global mining industry," La Salle stated.

As the only TSX-listed pure silver mining company and exclusive private foreign silver producer in Morocco, Aya exports its entire production to precious metal smelters in the European Union. Financial reports indicate revenues of $30 million in the first nine months of the year, with net profits of $4 million.

Morocco currently ranks 15th globally in silver production, with approximately 8.8 million ounces produced in 2023, according to The Silver Institute's annual report. Aya Gold & Silver aims to reach full nameplate capacity by the first quarter of 2025.

Beyond the Zgounder operation, the company is expanding its presence through exploration projects along the South-Atlas Fault in Morocco and developing the Tijirit Gold Project in Mauritania. These ventures will be managed by its newly announced spinout company Mx2 Mining, revealed on September 12, 2024.

 

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