Aya Gold & Silver Inc. has announced the commencement of commercial production from a historical flotation stockpile containing precious metal-rich pyrite concentrate, situated within its Boumadine mining license. The recovery of these metals is expected to mitigate the environmental impact of previous operations, aid in the rehabilitation of the area, and generate positive cash flow that will contribute to the Boumadine project.
Image Credit: Aya Gold & Silver Inc.
This stockpile was created during legacy lead and zinc flotation operations that took place in the late 1980s and early 1990s.
Project Highlights
- Aya has entered into an offtake agreement with a global buyer for the acquisition of the legacy stockpile.
- Production volume: The monthly output and delivery of the historical flotation product is projected to continue for the next 20 to 24 months, or until the recoverable material is depleted, at an estimated rate of 10,000 tons ("t") per month.
- An estimated total of 2.5 million silver-equivalent ounces ("Moz AgEq") is expected to be produced and shipped during this timeframe.
- The average anticipated resource grades are approximately 2.30 grams per ton ("g/t") for Gold ("Au") and 144 g/t for Silver ("Ag")
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. 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.
Benoit La Salle, President & CEO, Aya Gold & Silver Inc.
Project Overview
During the historical operations at the Boumadine property, around 260 thousand tons ("kt") of ore were extracted, resulting in the production of lead and zinc concentrates. The average recovery rates for precious metals were approximately 30 % for gold and 40 % for silver, which left by-products containing commercially significant grades of both metals.
The volume that can be recovered will undergo further refinement throughout the execution of the project.
Favorable market conditions, such as the prices of precious metals, restricted supply, and a continuous demand for sulfur, have presented an opportunity to monetize the historical flotation by-product.
Aya has garnered interest from several offtakers, which validates market demand and confirms commercially viable payable levels.
Aya has assembled a team, procured equipment, and contracted services for loading and handling, while also securing surveying services to guarantee accurate monitoring of operations.
The logistics chain has been meticulously organized, with the product being transported by truck from the site to an inland port, subsequently moved by rail to the seaport, and ultimately shipped in containers to the offtakers.
Sampling and analysis programs have been established to maintain quality and ensure compliance during the entire shipment process.
A total of 2,500 tons of product has been loaded and dispatched to the dry-port facility in Morocco, where it is currently being packed into sea containers for final delivery to the client. The initial payment from the offtaker is expected by the end of the year. Revenue generated from this operation will aid in the advancement of the Boumadine project. This project aims to minimize environmental impact while optimizing the recovery of marketable materials.