Aya Gold & Silver Inc recently provided an update on construction progress at its Zgounder Silver Mine in the Kingdom of Morocco. The expansion project was 98% complete as at August 30, fully funded, and on budget.

However, engineering, procurement, and construction partner, Duro Felguera (DF), encountered issues during commissioning of the hydraulic unit of the ball mill. As a result of these issues, DF recently advised Aya that a rework of the hydraulic unit piping is required. This does not impact the integrity of the ball mill, the hydraulic unit or other equipment. Commissioning of other subsystems is proceeding steadily, and the crushing circuit is now operational.

As a result of the necessary rework, DF has requested and obtained from Aya a two-month extension for hot commissioning and ramp-up of the Zgounder expanded plant. All other critical areas of the Zgounder expansion project are progressing to plan or are in commissioning:

Commissioning of other areas of the plant continues to progress: ore has been crushed throughout the entire crushing circuit and sent to the silo. Work has begun on the underground ramp from the 1,925 m to 1,900 m levels and will continue to lower levels. The entire mining site is now powered with renewable energy from the newly built 60 kV power line plus the new underground mobile workshop is in use and the primary underground ventilation is working on all levels. The on-surface cemented backfill mixing station and piping on all sublevels are mechanically complete and will shortly be commissioned.

All four underground electrical substations have been deployed and the water dams and other water storage infrastructures are operational. The new tailings dam is in use and water is being recovered from the tailing dam. The base camp is also complete and the new assay laboratory is near-complete with commissioning planned end of September 2024.

Given the delay in hot-commissioning and ramp-up of the Zgounder expanded plant, the company’s 2024 production guidance is under review. Aya expects to revisit its production guidance based on construction progress and operational results by latest November 14, 2024, when it will publish its third-quarter 2024 financial results.

“While there has been a slight delay in hot commissioning, all critical aspects of the Zgounder Mine expansion are advancing as planned, and the project remains on budget,” said Benoit La Salle, President & CEO. “We are on track for a strong finish to the year with additional operational milestones and exploration drill results expected to further enhance stakeholder value. We are confident that 2025 will be an exceptional year following completion of the plant ramp-up.”