Aya Gold & Silver Completes Front-End Engineering Design and Updates on Zgounder Expansion
PRESS RELEASE
Aya Gold & Silver Completes Front-End Engineering Design and Updates on
Zgounder Expansion
Montreal, Quebec, July 7 2022 - Aya Gold & Silver Inc. (TSX: AYA ; OTCQX: AYASF ) (“A ya” or the
“Corporation”) is pleased to report that it has completed the Front-End Engineering Design (“FEED”) with
Lycopodium, and to provide an update on the expansion of the Zgounder Silver Mine in the Kingdom of
Morocco.
“We are pleased to announce the timely completion of the FEED, which is an important first milestone in
Zgounder’s expansion, setting the pace for upcoming deliverables especially the procurement of long -
lead items and the finalization of the plant construction contract. Our updated, simplified flowsheet keeps
CAPEX and OPEX costs in line with the feasibility study and improve s operability,” said Benoit La Salle,
President & CEO. “As we prepare to break ground, our entire team remains focused on maintaining the
highest health and safety standard while advancing Zgounder on budget and on schedule.”
Zgounder Expansion Update Highlights
As of June 30, 2022, the following milestones have been achieved:
• Completion of the FEED, including flowsheet modifications. During the FEED phase, the following
was achieved:
o Completion of additional metallurgical test work at the SGS facilities in Lakefield, Canada,
and at other vendor testing facilities.
o Simplification of the process ing plant flowsheet (see exhibit 1 and Appendices), which
was a Feasibility Study (“FS”) recommendation. Based on the test work results obtained
during the FEED and a review of the process with Lycopodium Minerals Canada Ltd.
(“Lycopodium”), the Corporation decided to remove the flotation and CIP circuits and
process the whole ore flow in a leaching circuit, followed by Counter Current Decantation
(“CCD”) and a Merrill-Crowe circuit for the silver extraction.
o The new , whole-ore-leach process plant flowsheet will allow for better process water
management and recycling. F urthermore, the CCD circuit will offer greater operational
flexibility and leverage existing operating expertise.
o Revision and optimization of the p rocess design criteria, mass and water balances, and
the process flow diagrams.
o Initial draft of the piping and instrumentation diagram s, and issuance of a preliminary
process control philosophy document.
• Quotations for 21 mechanical equipment packages, including all key long -lead items, have been
received from a pre-approved list of vendors:
o All quotations received are firm price offers. More than 90% (in value) of the mechanical
equipment procurement offers for the new process plant have been received and re-
confirm the process plant CAPEX and OPEX estimated in the FS.
o A supplier for the ball mill package has been selected, and final terms and conditions are
being negotiated. A purchase order is expected shortly. When complete, it will be a key
milestone firming up the construction timeline of the project.
• Update and optimization of the 3D model of the plant developed during the FS:
o Inclusion of placeholders for additional process equipment that could potentially expand
the new process plant capacity from 2,000 tonnes per day (“tpd”) to 3,000 tpd with limited
adverse impact.
• Award of a contract for the earthworks for the new process plant and the new haulage road to a
major Moroccan contractor. Mobilisation to site is planned for the second half of July 2022.
• The Corporation is currently in discussions with two engineering and project delivery companies
regarding construction of the processing plant and expects to receive both offers before month-
end. The Corporation expects to select the contractor and award the contract in the coming
months.
• Groupement des Consultants et Ingénieurs du Maroc (“GCIM”), a local Moroccan civil engineering
firm, has been awarded the contract for the detailed design of the new Tailings Storage Facility
(“TSF”). Additionally, the Corporation has awarded the Engineer of Record (“EoR”) mandate to
EPOCH Resources Pty, a well-known South African civil engineering company. The companies
have begun to collaborate on the detailed design of the first phase of the new TSF.
• Following successful construction of the first 60,000 m³ water storage basin, the Corporation and
GCIM are working together to develop similar water storage facilities to ensure sufficient raw
water storage capacity prior to commissioning of the new process plant.
• Mine underground development on schedule and aligned with the FS:
o A total of 1,130 m of lateral underground mine development effected to date.
o Mobilisation of CMAC -Thyssen in July 2022 and start of vertical mine development in
August 2022.
• The Corporation’s internal construction team is complete.
• As of June 30, 2022, the Zgounder expansion is on budget and on schedule.
Exhibit 1 – 3D Model of New Zgounder Process Plant
Exhibit 2 – Zgounder Expansion Timeline
Video
An animated video of the Corporation’s FS including the updated flowsheet can be viewed here.
Qualified Person
The technical information contained in this news release has been reviewed and approved by Patrick
Perez, P.Eng, Director of Technical Services, a Qualified Person as defined under NI 43-101.
About Aya Gold & Silver Inc.
Aya Gold & Silver Inc. is a rapidly growing, Canada-based silver producer with operations in the Kingdom
of Morocco.
The only TSX-listed pure silver mining company, Aya operates the high-grade Zgounder Silver Mine and
is exploring its properties along the prospective South -Atlas Fault, several of which have hosted past -
producing mines and historical resources. Aya’s Moroccan mining assets are complemented by its Tijirit
Gold Project in Mauritania, which is being advanced to feasibility.
Aya’s management team has been focused on maximising shareholder value by anchoring sustainability
at the heart of its operations, governance, and financial growth plans.
For additional information, please visit Aya’s website at www.ayagoldsilver.com.
Or contact
Benoit La Salle, FCPA FCA
President & CEO
Alex Ball
VP, Corporate Development & IR
Forward-Looking Statements
This press release contains certain statements that constitute forward -looking information within the
meaning of applicable securities laws (“forward -looking statements”), which reflects management's
expectations regarding Aya’s future growth and business prospects (including the timing and
development of new deposits and the success of exploration activities) and other opportunities.
Wherever possible, words such as "improves”, “advance”, “allow”, “offer”, “confirm”, “expect”, “potentially”,
“ensure”, “expand”, “, “believe”, “intend”, “ability to” and similar expressions or statements that certain
actions, events or results “may”, “could”, “would”, “might”, “will”, or are “likely” to be taken, occur or be
achieved, have been used to identify such forward -looking information. Specific forward -looking
statements in this press release include, but are not limited to, statements and information with respect
to the exploration and development potential of Zgounder and the conversion of Inferred Mineral
Resources into Measured and Indicated Mineral Resources, future opportunities for enhancing
development at Zgounder, and timing for the release of the Company's disclosure in connection with the
foregoing, the capacity of the Company to continue to advance its expansion plan on time and on budget
and the capacity of the Company to finance its expansion plans. Although the forward -looking
information contained in this press release reflect management's current beliefs based upon information
currently available to mana gement and based upon what management believes to be reasonable
assumptions, Aya cannot be certain that actual results will be consistent with such forward -looking
information. Such forward-looking statements are based upon assumptions, opinions and analysis made
by management in light of its experience, current conditions, and its expectations of future developments
that management believe to be reasonable and relevant but that may prove to be incorrect. These
assumptions include, among other things, the closing and timing of equity or debt financing required for
the construction of the expansion project, the ability to obtain any requisite governmental approvals and
enter into necessary investment agreements to facilitate the investment with certain conces sions,
obtaining regulatory permits for on site work, importing goods and machinery and employment permits,
the accuracy of Mineral Reserve and Mineral Resource Estimates (including, but not limited to, ore
tonnage and ore grade estimates), the price of si lver, the price of gold, exchange rates, fuel and energy
costs, future economic conditions, anticipated future estimates of free cash flow, and courses of action.
Aya cautions you not to place undue reliance upon any such forward-looking statements.
The ri sks and uncertainties that may affect forward -looking statements include, among others: the
inherent risks involved in exploration and development of mineral properties, including government
approvals and permitting, changes in economic conditions, changes in the worldwide price of silver gold
and other key inputs, changes in mine plans (including, but not limited to, throughput and recoveries being
affected by metallurgical characteristics) and other factors, such as project execution delays, many of
which are beyond the control of Aya, as well as other risks and uncertainties which are more fully
described in Aya's 2021 Annual Information Form dated March 31, 2022, and in other filings of Aya with
securities and regulatory authorities which are available o n SEDAR at www.sedar.com. Aya does not
undertake any obligation to update forward -looking statements should assumptions related to these
plans, estimates, projections, beliefs, and opinions change. Nothing in this document should be
construed as either an offer to sell or a solicitation to buy or sell Aya securities. All references to Aya
include its subsidiaries unless the context requires otherwise.
Appendix 1 – 3D Image of Zgounder Expanded Processing Plant
Appendix 2 – Revised Flowsheet for Zgounder Expansion