Aya Gold & Silver Inc has announced that its subsidiary, Zgounder Millennium Silver Mining SA, has entered into a fixed price EPC contract with Spanish company Duro Felguera SA (DF) for construction of the new Zgounder process plant in the Kingdom of Morocco. The miner says it has also awarded contracts for the construction of its ball mill and crushing equipment package, which are in line with the expansion development timeline.
The deal with DF A multicurrency fixed price EPC contract worth $78 million for the construction of a new 2,000 t/d processing plant. This will bring the total milling capacity of the Zgounder Mine to 2,700 t/d. DF has been involved in engineering and procurement of the plant since March 2022. Detailed engineering has been advancing through a limited notice to proceed totalling over $6.6 million to date.
Fabrication orders have been placed for long-lead items including the ball mill, crushing equipment, Merrill-Crowe, silver refinery, and counter-current decantation thickeners. The EPC contract represents a significant portion of the total scope of the expansion project. It does not include capital expenditures such as the development of the underground and surface mine infrastructure, the powerline and site electrical distribution, the new tailings facility, and owner’s costs. Processing plant earthwork and civil work are excluded from the EPC contract. Earthworks began on schedule in August 2022, led by the in-house construction team.
“We are delighted to announce two long-lead milestones including the EPC contract and the ball mill purchase order, both of which are critical to delivering the first silver pour by end of Q1-2024. We are also very proud of our partnership with DF, a long-established construction and engineering firm with deep expertise in turnkey mining projects,” said Benoit La Salle, President & CEO. “During its over 160 years of mining experience, Spain-based DF has provided customised solutions for mining projects globally. With a fixed price EPC Contract in place, we are mitigating cost overrun risks for the expansion which is proceeding on time and on budget.”
“Overall, we are delighted with the team’s progress to date de-risking the project, both through project procurement and by starting the earthworks with our in-house construction team and local contractors,” said La Salle.
As of September 30, 2022, the Zgounder Silver Mine expansion was on scheduleand on budget. Quotations for 21 mechanical equipment packages, including all critical path long-lead items, have been received from a pre-approved list of vendors. Timely commencement of earthworks has been achieved. Over 2,266 m of permanent underground infrastructure was completed.
Detailed design for the first phase of the new tailings storage facility has been completed, a competitive request for quotation process for its construction has concluded and contract award will be awarded by year-end. Additional fresh water storage facilities have been developed to ensure sufficient water storage capacity prior to commissioning of the new process plant.
