Aya Gold & Silver Inc. is pleased to announce another strong quarter with record operating cash flow of $4.2 million for the quarter ended March 31, 2021. All amounts are in US dollars unless otherwise stated.
Q1 2021 Operational and Financial Highlights
Corporate Highlights
“We continued to reinforce the strong fundamentals established at the end of 2020 to improve overall recovery rates, plant availability and approach nameplate capacity. We finished the quarter with a very healthy balance sheet, after generating record operating cash flow for a second consecutive quarter. We will continue capital improvement initiatives at Zgounder that will directly affect silver production while we evaluate exciting exploration opportunities in our project portfolio,” said Benoit La Salle, President & CEO.
Q1 2021 Highlights
Three-month period ended March 31, |
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Key Performance Metrics |
2021 |
2020 |
% Variation |
|
Operational |
||||
Ore Processed (tonnes) |
48,472 |
20,976 |
131% |
|
Average Grade (g/t Ag) |
296 |
223 |
33% |
|
Mill Recovery (%) |
82.8% |
45.6% |
82% |
|
Silver Ingots Produced (oz) |
190,621 |
51,172 |
273% |
|
Silver in Concentrate for Sale Produced (oz) |
198,511 |
15,833 |
1,154% |
|
Total Silver Produced (oz) |
389,132 |
67,005 |
481% |
|
Silver Ingots Sold (oz) |
162,500 |
21,110 |
670% |
|
Silver in Concentrate for Sale Sold (oz) |
189,519 |
– |
NM |
|
Total Silver Sales (oz) |
352,019 |
21,110 |
1,568% |
|
Financial |
||||
Revenues |
8,541,273 |
525,062 |
1,527% |
|
Cost of Sales and Net Profit Interest |
3,963,251 |
566,946 |
599% |
|
Gross Margin |
4,578,022 |
(41,884) |
(11,030%) |
|
Operating Income (Loss) |
2,458,478 |
(776,631) |
(417%) |
|
Net Earnings (Loss) |
819,670 |
(435,733) |
(288%) |
|
Operating Cash Flows |
4,223,564 |
93,531 |
4,416% |
|
Cash and Restricted Investments Cash |
31,820,687 |
14,831,283 |
115% |
|
Change in Working Capital Items |
1,511,019 |
680,621 |
122% |
|
Shareholders |
||||
Earnings (Loss) per Share (“EPS”) – basic |
0.009 |
(0.005) |
Q1 2021 Exploration Highlights
Following the completion of a 19,300-meter (“m”) exploration program in 2020, an updated mineral resource statement for Zgounder was compiled together with drilling results from 2018 and 2019. In addition to M&I mineral resources increasing to 44.4 million oz of silver, an exploration target of 3-6 million tonnes grading 190-295 g/t silver or an additional 20-60 million silver oz was established for Zgounder at depth and along lateral extensions. The exploration target was derived from a larger mineralized envelope including all mineral intersects while excluding the mineral resources reported.
The focus of exploration in the first quarter was the exploration target where over 10,000 m of drilling was carried out as part of the 35,000 m exploration program on the Zgounder mine permit. Currently, there are six drill rigs operating on Zgounder, four from surface and two within the mine, with two additional rigs expected on site shortly. Additionally, first-ever ground MAG and IP surveys were carried out on Zgounder during the period. Compilation is now in progress in order to create a geological and geophysical interpretation of the Zgounder property.
In the quarter, preliminary desk work began on the Amizmiz, Azegour and Imiter bis exploration properties. Exploration field work is expected to commence in Q2 2021. A total of 9,000 m of exploration drilling has been scheduled on the properties in 2021.
Q1 2021 Operations Ramp-up
Mining operations continued to ramp up with 42,126 t of ore blasted in Q1 2021 compared to 28,101 t in Q4 2020, representing a 50% increase from the previous quarter. The transition in mining method from shrinkage to cut-and-fill stoping progressed as planned.
Silver recovery for the flotation plant improved to 81.9% in Q1 2021 from 80.5% in Q4 2020. The cyanidation plant also saw silver recoveries improve to 83.7% in Q1 2021 compared to 79.5% in Q4 2020.
Q1 2021 Operations Support
A number of capital investment projects are in progress with a view to supporting the 2021 production guidance and fuelling growth. These include three additions to the mining fleet and the construction and commissioning of a 60 m underground access and loading dock, the latter to increase ore extraction and to reduce ore handling. Additionally, construction of a water storage basin is almost complete. Refurbishing of the cyanidation plant has also begun, and a gyratory crusher has been delivered on site for installation in the coming months.
During the quarter, key hires in the areas of mining, maintenance, health and safety, and community relations were made to further strengthen the operations team.
Zgounder Development
In August 2020, the Corporation launched a feasibility study for the expansion of its Zgounder Silver Mine. To date, the study is progressing well: several trade-off studies are already complete, the geo-technical fieldwork is underway and all other major deliverables on schedule for completion by year-end 2021.
About Aya Gold & Silver Inc.
Aya Gold & Silver Inc. is a publicly traded Canadian company focused on the operation, exploration, acquisition and development of silver and gold deposits. Aya is currently operating mining and milling facilities at its Zgounder Silver Mine, an 85%-15% joint venture between its subsidiary, Zgounder Millenium Silver Mining SA, and the Office National des Hydrocarbures et des Mines (“ONHYM“) of the Kingdom of Morocco.
Its mining portfolio also includes the Boumadine polymetallic deposit located in the Anti-Atlas Mountains of Eastern Morocco which is also a joint venture with ONHYM wherein Aya retains an 85% ownership. Additionally, the Corporation’s portfolio includes the Amizmiz and Azegour properties, both being 100% owned, with gold, tungsten, molybdenum and copper occurrences in the center of the historical mining district of Morocco.
For additional information, please visit Aya’s website at www.ayagoldsilver.com.