Morocco: Canadian mining company surpasses initial 2021 estimates

Canadian mining company Aya Gold & Silver announced in January “strong 2021 operational results with record production of 1.6 million ounces at its Zgounder Silver Mine in the Kingdom of Morocco.”

According to the company’s press release published on January 28, production increased 120% year over year, exceeding the company’s initial estimates.

In the fourth quarter of 2021 (Q4-2021), silver production at the above-mentioned mine reached 433,742 ounces, an increase of 6% from the preceding quarter.

According to its press release, the company projects annual growth of 8% in 2022, starting between 1.65 million and 1.80 million mining operations.

An increase in silver prices of 6% is expected to further offset the company’s positive growth outlook for 2022. Silver prices are expected to settle at $12 per ounce.

Aya Gold & Silver has announced its plans to expand its operations in Morocco’s Zgounder region located in the central Anti-Atlas Mountains. Initially budgeted at $14 million, double the budget for exploration in 2021, the expansion is currently dependent on the results of a feasibility study due in the first quarter of 2022.

The Canadian company also plans to expand the mining operation to other Moroccan silver-producing regions including Imiter Bis, and Boumadine.

According to Benoit La Salle, President, and CEO of Aya, the 2021 production results were truly record-breaking. La Salle said the Zgounder site will be producing “multimillions of ounces of silver” in 2022.

As part of the expansion strategy, the corporation established multiple sustainability goals. According to the same source, responsible mining and contributing positively to the local community are central to the company’s expansion strategy.

The Zgounder silver mine in Morocco is the second-largest silver mine in the country after the Imiter Mine in Tinghir in central Morocco, south of the High Atlas Mountains.

The Canadian mining firm works exclusively in Morocco because of its large resources, unexplored, and stable. Further incentives include a 5-year tax exemption, a 50% tax reduction for exporting mining companies, and state assistance.