Aya Gold & Silver Files Updated Technical Report for the Zgounder Silver Mine
Aya Trades Zgounder's Grade for Scale as Boumadine Waits in the Wings
On December 16, 2025, Aya Gold & Silver filed an updated NI 43-101 Technical Report for its flagship Zgounder Silver Mine in Morocco. Key highlights include: - Proven & Probable Mineral Reserves increased by 4% to 73.39 million ounces of silver, net of depletion. The reserve tonnage increased substantially to 15.7 million tonnes, while the average grade decreased to 145 g/t Ag. - Measured & Indicated Mineral Resources (inclusive of reserves) increased by 5% to 100.2 million ounces of silver at an average grade of 165 g/t Ag. - The Life of Mine (LOM) plan is extended to 2036, projecting an average annual silver production of approximately 6 million ounces for the next 11 years. - The average LOM cash cost is estimated at $16.26/oz, with sustaining capital of $71 million over the LOM. - The company achieved a 120% reserve replacement ratio, adding 13 million ounces which more than replaced the 11 million ounces mined since the previous estimate.
This updated technical report is a materially positive event that provides critical validation and a clear long-term strategy for the Zgounder mine, the company's cornerstone asset. While on the surface the significant drop in reserve grade (from 257 g/t Ag in the previous estimate to 145 g/t Ag) could be viewed negatively, it must be assessed in the context of the company's strategic shift.
- De-risking and Validation: The filing of this report, compiled with independent qualified persons, delivers on the company's promise made in its September 25, 2025 rebuttal to a short-seller report. This action effectively validates the resource model and should put to rest any lingering concerns about the deposit's integrity. This is a significant removal of a key overhang for the stock.
- Strategy Confirmation: The dramatic increase in tonnage at a lower grade confirms the successful shift to a bulk-tonnage, open-pit-focused mining operation. This strategy sacrifices high grades for economies of scale, operational flexibility, and a longer mine life. The November 11 conference call detailed the operational success in ramping up throughput far beyond the plant's original nameplate capacity (hitting 3,700-4,000 tpd vs. 2,700 tpd design), which supports this bulk-tonnage approach.
- Production and Cost Clarity: The report outlines a stable production profile of ~6 million ounces per year, an increase from the 2025 guidance of 5.0-5.3 million ounces. The projected LOM cash cost of $16.26/oz is in line with 2025 guidance ($15.00-$17.50/oz) and provides confidence in future profitability, especially at current high silver prices.
- Meeting Projections: Aya has consistently met or exceeded its operational ramp-up targets throughout 2025. The Zgounder expansion reached commercial production on schedule (December 2024), and quarterly production has grown sequentially all year. This report codifies the success of that ramp-up into a formal, long-term plan.
The market has rewarded Aya for its operational execution and the reveal of Boumadine's potential, sending the stock to new highs. This news solidifies the foundation of that valuation by confirming Zgounder as a long-life, profitable asset. The key risk now shifts from resource questions to operational execution, specifically managing grade control in the open pit, a challenge acknowledged by management in the Q3 conference call.
Aya Gold & Silver is a Canadian-based, pure-play silver producer focused on operations in the Kingdom of Morocco. - Flagship Project (Producing): Zgounder Silver Mine. A high-grade silver mine that recently completed a major expansion, bringing a new 2,700 tpd processing plant online in late 2024. The new mine plan is based on a combined open-pit and underground operation with a mine life extending to 2036. - Key Growth Project (Development): Boumadine Polymetallic Project. A district-scale, high-grade gold-silver-zinc-lead project. A November 2025 PEA showed robust economics (post-tax NPV5% of $1.5B at base case prices), positioning it as a potential tier-one asset and the company's primary growth driver.