Aya Gold begins production from Boumadine stockpile

Executive Summary

• Aya Gold & Silver Inc. has commenced commercial production and shipments from a historical flotation stockpile of precious-metal-rich pyrite concentrate at its Boumadine mining licence in Morocco.
• The company entered into an offtake agreement with an international buyer to process and ship the legacy material, which was generated during historical lead and zinc operations in the late 1980s and early 1990s.
• The initiative serves a dual purpose: generating positive cash flow to fund Boumadine project development and reducing the environmental footprint by removing acid-generating material from the site.

Key Details

• Production Volume & Timeline: Monthly production and shipment of historical flotation product over the next 20 to 24 months, or until recoverable material is exhausted.
• Production Rate: Estimated at 10,000 tonnes per month.
• Total Estimated Production: Approximately 2.5 million silver equivalent ounces to be produced and shipped over the project life.
• Resource Grades: Average anticipated resource grades of approximately 2.30 grams per tonne gold and 144 grams per tonne silver.
• Historical Context: The stockpile consists of approximately 260,000 tonnes of ore mined during historical operations, where precious metal recoveries averaged ~30% for gold and ~40% for silver, leaving commercially meaningful byproduct grades.
• Current Status: As of the release date, 2,500 tonnes of product have already been loaded and shipped to the dry-port facility in Morocco for final shipping to the client.
• Financial Terms: The first payment from the offtaker is anticipated by year-end. Cash generated will contribute to the development of the Boumadine project.
• Logistics: Product is transported by truck from the site to an inland port, then by rail to the seaport, and finally shipped by container to offtakers. Sampling and analysis programs are in place for quality control.
• Market Drivers: Commercialization is driven by favorable market conditions, including precious metal prices, limited supply, and continuing demand for sulphur.

Notable Quotes

• "The commercialization of the historical Boumadine stockpiles offers two key benefits. We are cleaning up legacy operations by removing unwanted acid-generating material from the site near the planned open pit and establishing commercial relationships with future offtakers of our pyrite product," said Benoit La Salle, president and chief executive officer. "Unlocking value from legacy pyrite concentrate highlights the commercial potential and marketability of the gold- and silver-rich pyrite concentrate that Boumadine will produce during operation."