Maya Gold & Silver files technical report on positive PEA at the Zgounder silver mine in Morocco

Posted by Daniel Gleeson on 23rd February 2018

Maya Gold & Silver has filed on SEDAR a Technical Report in compliance with NI 43-101 to support the mineral resources estimates declared on January 8 and the PEA declared on February 5 2018.

The mine is owned by Zgounder Millenium Silver Mining S.A. (ZMSM), a Maya 85% owned joint venture with l’Office National des Hydrocarbures et des Mines of the Kingdom of Morocco (15%). The PEA Study, prepared by GoldMinds Geoservices from Québec City (GMG), is dated January 30 2018 and relies on mineral resource estimates reported on January 8 2018.

Maya started the first diamond-drilling program at Zgounder in April 2015 and both the diamond drilling programs of 2015 and 2017 allowed Maya to increase the mineral resource estimates of Zgounder. The milling operations began in July 2014 and Maya announced the first silver pour in August 2014 with the production of the 20 silver ingots. Maya has produced a total of 1.35 Moz of silver from Zgounder mine as of December 2017.

Highlights of the Zgounder PEA study:

  • A project life of 10 years with the current resources up to 2027
  • ZMSM IRR of 134% and 118% after taxes
  • ZMSM pre-tax NPV of $215.1 million (discounted at 6.5%) at variable silver price from $17.50 to $21.50/oz with yearly average of $20.50/oz
  • ZMSM after-tax NPV of $200.2 million (discounted at 6.5%) at the same variable silver prices
  • The extraction of 3.974 Mt at 292 g/t Ag for silver production of 33.682 Moz
  • Milling to increase to 500 t/d in 2018 then up to 2020 followed by a 2000 t/d in 2021
  • Production increase to 1.354 Moz/y up to 4.762 Moz/y of silver
  • Total operating cost of $63.64/t (averaged over the expected mine’s life)
  • Capex and sustaining capital requirements of $46.9 million
  • Maya IRR of 121% with an NPV of $209.86 million.

The Zgounder PEA was prepared as combination of underground extraction, open pit extraction of mineralized material as well as reprocessing of old tailings based on the mineral resources reported on January 8, 2018.

Noureddine Mokaddem, President and CEO of Maya, stated: “These positive results of the PEA are an important milestone reached at the Zgounder silver mine. We are very excited to see such a high NPV, a break-even point before taxes of $10.40/oz Ag, well positions Zgounder to face severe commodity fluctuations. The financial results outlined in the PEA are highly encouraging, indicating the economic viability of the known resources and supports our belief that Zgounder is a robust project, and has the upward potential in inferred resources to grow into an important silver producer. These results will help Maya continue to scale and achieve its aspirations.”