Aya Gold & Silver Inc. Secures $8 Million Compensation for Zgounder Expansion Project
In a significant move for Africa’s silver mining sector, Aya Gold & Silver Inc. announced on Thursday in Marrakech that it has successfully received approximately $8 million as compensation related to its ongoing Zgounder Expansion Project. This financial boost, conveyed under bank guarantees issued on behalf of Duro Felguera—a key contractor in the project—affirms the company’s robust approach to project oversight and contract enforcement.
Background on the Zgounder Expansion
The compensation in question was received by Zgounder Millenium Silver Mining, a subsidiary of Aya Gold & Silver, and stems from an engineering, procurement, and construction (EPC) agreement. According to the company’s press release, this recovery not only highlights Aya’s methodical governance but also showcases its commitment to risk mitigation during the project’s development.
In terms of progress, the Zgounder Mine’s expansion was reported to be an impressive 99% complete by the close of September 2024. With commercial production slated to commence in the fourth quarter of 2024, this expansion is predicted to quadruple silver output to around 6.8 million ounces annually, positioning Aya as a significant player in the competitive silver market.
Strategic Location and Mining Permits
Nestled approximately 260 kilometers east of Agadir in Morocco’s central Anti-Atlas mountains, the Zgounder Mine boasts geographical advantages. Being the second most important silver mine in Morocco, following the renowned Imiter Mine, Zgounder is conveniently accessed via well-maintained paved highways, with only a final stretch traversed through gravel roads.
Zgounder is not just a singular mine; the Zgounder mining permit spans a substantial area of 16 km². Complementing this are several additional permits that cover 350 km², allowing for both current mining operations and future explorations. Over the years, Aya has reported consistent growth in silver production, from just under 260,000 ounces in 2018 to a staggering 1.97 million ounces in 2023, displaying the mine’s striking potential.
Economic Viability and Future Projects
A feasibility study carried out in February 2022 confirmed the economic feasibility of boosting the mine’s throughput dramatically from 700 tons per day to 2,700 tons per day. This expansion includes plans for a new 2,000 tons per day flotation-CIP plant aimed at producing high-quality silver bars—an initiative bolstered by a promising reserve estimate that suggests low life-of-mine all-in sustaining costs of about $9.58 per ounce.
In 2024, Aya plans to embark on an ambitious 40,000-meter drilling program at Zgounder. This will involve a detailed follow-up of underground targets identified in previous near-mine programs and an exploration of Zgounder Regional permits to investigate further mineralization and copper-silver occurrences at sites like Tirzzit.
Current Production and Prospects
Despite ongoing expansion, Aya’s production for 2024 is anticipated to reach 1.65 million ounces of silver. With its new ore processing facility now operational, projections suggest a tripling of output to around 5 million ounces—putting Aya’s production ahead of that of the Imiter Mine, further solidifying its status in Morocco’s mining landscape.
In addition to Zgounder, Aya is also advancing its Boumadine project, a polymetallic deposit expected to be larger than Zgounder. This project, located south of Tinejdad, is currently undergoing a drilling campaign that will lead to a preliminary economic assessment by the close of 2025, potentially paving the way for a new mine to begin operations in 2026.
Company Overview
Aya Gold & Silver Inc., headquartered in Canada, is unique in being the only pure silver mining entity listed on the Toronto Stock Exchange (TSX). The company’s market capitalization has seen tremendous growth, jumping from CAD 948 million in 2021 to an impressive CAD 1.7 billion in 2025—a remarkable 79% increase.
Led by experienced President and CEO Benoit La Salle, Aya’s management team has a strong background in developing successful mining operations across various African nations, which, combined with favorable mining conditions in Morocco, has fostered rapid expansion in the region’s mining sector.
Final Words
The recent developments at Aya Gold & Silver Inc. reflect not only the potential within the Zgounder mine but also the company’s strategic foresight and management prowess. As Aya continues to enhance its operations and expand its mining capacity, it firmly establishes itself as a central player in Morocco’s burgeoning mining industry. With ambitious plans for further explorations and expansions, Aya Gold & Silver is poised for a bright future in silver production.
