Aya Gold & Silver: Record Annual Production of 1.6 Million Ounces in 2021 Announces 2022 Outlook
PRESS RELEASE
Aya Gold & Silver: Record Annual Production of 1.6 Million Ounces in 2021
Announces 2022 Outlook
Montreal, Quebec, January 19, 2022 - Aya Gold & Silver Inc. (TSX: AYA) (“Aya” or the “Corporation”) is
pleased to report strong 2021 operational results with record production of 1.6 million ounces at its
Zgounder Silver Mine in the Kingdom of Morocco. This represents a 120% year-over-year increase in
production. All dollars are in U.S. dollars, unless otherwise stated.
2021 Fourth Quarter Production Highlights
• Silver production totalled 433,742 ounces (“oz”) in Q4 -2021, a 6% increase compared with Q4 -
2020
• Silver recovery of 82.4% in Q4 -2021, and 2021 silver recoveries of 82.1%, in line with 2021
guidance
• Quarterly head grade of 248 grams per tonne (“g/t”) silver (“Ag”) and 2021 head grade of
269 g/t Ag, above 2021 guidance
• Increased throughput to 716 tonnes per day (“tpd”) in Q4-2021, exceeding design capacity
• Record silver production of 1.6 million oz in 2021, exceeding the 2021 production guidance
2022 Zgounder and Corporation Outlook
The Corporation’s 20 22 outlook outlines continued silver production growth , coupled with an
acceleration of its ESG reporting and metrics for 2022 as part of the Corporation’s transformation and
growth plan.
• Silver production of between 1.65 and 1.80 million oz, an 8% increase compared to 2021
• Silver cash cost of $12/oz, a 6% increase compared to 2021 cost guidance that is mainly driven
by increased investment in the mine’s health and safety plan and procedures
• Initial exploration program of $14 million, $6.4 million of which is allocated to Zgounder
• Completion of the Zgounder expansion feasibility study in Q1-2022
• Ongoing roll-out of Zgounder’s ESG action plan with a particular focus on health and safety
• Sustainability reporting in accordance with Global Reporting Initiative (“GRI”) Standards
• Delivery of the Tijirit feasibility study expected in Q2-2022
• Drilling priority on Zgounder, Imiter bis, and Boumadine properties
“2021 was a record-breaking year for the Corporation, exceeding 2021 guidance for production, mining
and plant throughput," said Benoit La Salle, President & CEO . “With a solid foundation set in 2021, this
year’s guidance is catalyst-packed as we deploy our long-term growth strategy and speaks to the strong
execution and ongoing measures taken by our team to improve efficiencies and ensure its sustainable
development. We expect to continue to demonstrate Zgounder’s potential with our 2022 drilling
program and a robust expansion feasibility study that will provide a clear path to becoming a
multimillion-ounce silver producer.”
Full Year and Fourth Quarter 2021 Production Highlights
Q4-2021* 2021*
Tonnes processed 65,855 224,515
Average grade (g/t Ag) 248 269
Silver ingots produced (oz) 172,654 692,392
Silver in concentrate for sale produced (oz) 261,087 908,254
Total silver produced (oz) 433,742 1,600,646
*2021 numbers are preliminary and are subject to final adjustment.
Fourth Quarter 2021 Updates
Operations
Silver recovery increased to 82.4% relative to 78.9% for the same period in 2021. The increase in Q4 -
2021 recovery relative to 80.9% in Q3-2021 is due to a higher silver recovery of 82.1% at the cyanidation
plant as the dry season subsided, as expected.
In the quarter, plant availabilit y reached 8 9% and 95% for the flotation and cyanidation plants,
respectively. Availability was affected by a four-day planned shutdown at the flotation plant at the end
of December.
During the fourth quarter, work focused on the commissioning and ramp -up of a new cone crusher at
the flotation plant , which provided a 15% increase in throughput , resulting in a global milling rate of
716 tpd for the quarter . A major planned shutdown was successfully executed. Definition drilling was
conducted to further refine the mine r esource model and to improve head grade forecasting.
Preparations are ongoing for the arrival of the mining contractor responsible for mine development
necessary for the expansion.
Exploration
Zgounder
In the fourth quarter, t he Corporation completed 6,173 meters (“m”) of drilling at Zgounder . A total of
55,449m of drilling were completed in 2021, 41,932m of which were included in our December 2021
resource update. Zgounder remains open with potential to expand existing resources at depth and strike
extensions to the east.
Imiter bis
A drilling program totalling 4,381m was conducted on Imiter bis before year-end over four target areas
comprising the Middle Zone, the South Zone, the Central Zone, and the North -East Zone. Results are
expected in February 2022. Additionally, four trenches were completed for a total of 215m with the aim
of testing areas showing malachite at surface and obtaining a greater appreciation of the project
geology. The geophysical airborne survey , which was delayed due to COVID-related border issues , is
expected to begin before the end of Q1-2022.
Boumadine
Following a review of optimal processing methods in Q4-2021, a 7,500m drill exploration program has
been planned for H2-2022 at the Boumadine polymetallic property, located in east central Morocco.
Initial flotation tests were promising despite initial processing challenges related to high sulfide or e.
Gold recoveries will continue to be evaluated through oxidative test work in 2022. Execution of the drill
program is predicated on positive metallurgical test results. The geophysical airborne survey will be
flown over Boumadine following the fly-over of Zgounder.
2022 Zgounder Outlook
Zgounder 2022 Guidance
Silver production (M oz) 1.65 – 1.80
Silver cash cost ($/oz) 12
Recovery (%) 84
Tonnes processed (‘000 t) 245
Average grade processed (g/t Ag) 264
Initial Development Expenditures (millions of US$)
Initial exploration budget 6.4
Feasibility studies 1.4
In preparing the 2022 guidance, an exchange rate of $1.28 Canadian dollar to the US dollar was assumed.
2022 Exploration Program
An initial exploration program of $14 million has been set for 2022 , more than twice the exploration
budget set last year. The goal is to complete 72, 500m of drilling, of which 60% will be dedicated to
exploration and the addition of new resources and reserves. Our three priority target properties include
Zgounder (30,000m), Imiter bis (10,000m), and Boumadine (7,500m).
At Zgounder, 22,500m of the 30,000m diamond drill (“DDH”) program will build on the successful 2021
drill program and has been designed to expand existing resources at depth and test strike extensions
to the east . A total of 7,500m of reverse-circulation (“RC”) drilling and DDH will be completed on the
Zgounder Regional permits in Q2-2022 to follow up on the targets identified by the airborne geophysics
and mapping programs.
A maiden reserve statement will be released in Q1-2022 that will incorporate 2021 drill results carried
out at Zgounder until November 2021 ; and will underpin a feasibility study t hat expands the total
production capacity to 2,700 tpd.
The 10,000m DDH drill program scheduled at Imiter bis in 2022 will test new prospective areas defined
by the airborne survey and follow-up on the Q4-2021 drill results. The bulk of the program will be carried
out on three of the priority areas.
At Boumadine, an initial 7,500m drill exploration program has been established to test priority areas
identified by the spectral survey and historical drilling . These areas will be enhanced by targets
generated by the upcoming airborne geophysics.
Additionally, a 25,000m drilling program will be carried out on the Tijirit Project in H1-2022. The program,
which will consist of 3,000m DDH and 22,000m RC drilling, has the aim of converting resources into
reserves in support of the feasibility study.
2022 Sustainability Outlook
The Corporation has anchored responsible mining and positive social impact at the heart of its
transformational growth plan and sustainable impact strategy. The team will continue to develop its
ambitious ESG action plan, with a focus on the following:
• Implementing its environment and social management system, which is based on ISO 45001
and 14001 standards and is aligned with the International Finance Corporation (“IFC”)
Performance Standards
• Enhancing occupational health and safety measures and procedures through capital
investment initiatives including emergency preparedness, refurbishment of the entire electrical
system, training, and external audits
• Implementing the Global Industry Standard on Tailings Management and continuing water
monitoring
• Promoting local wealth creation through a five-year sustainable economic development plan
that has been created in partnership with the Biotechnology for Sustainable Development in
Africa Foundation (“BDA”)
o The plan empowers local agribusinesses that focus on the valorisat ion of local
biodiversity and facilitates their direct access to international markets
• Expanding and improving ESG disclosure and metrics including Scope 1 and 2 greenhouse gas
emissions, and reduction of carbon footprint through the ONYEN reporting platform
2021 Financial and Operational Results
The 2021 financial and operational results will be released before market on March 30, 2022.
Marc-Antoine Audet, Ph.D. P. Geo, Geological Consultant, and David Lalonde, B. Sc, Head of Exploration,
both designated as Qualified Persons under National Instrument 43-101, have reviewed and approved
the technical information contained in this press release.
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 “outlook”, “growth”, “acceleration”, “expected”, “increase”, “planned”,
“will”, “completion”, “scheduled”, “potential”, “estimates”, “continue”, “anticipate”, “to establish”, “does
not anticipate”, “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 capacity
to produce between 1.65 and 1.8 million oz of silver, the capacity to arrive at a cash cost of $12/oz, the
capacity to execute on an exploration program of $14 million, the capacity to finalize the Zgounder
expansion feasibility study, the capacity to roll -out the Company’s ESG action plan, the capacity to
deliver the Tijirit feasibility study, capacity to produce and deliver various engineering studies and
technical reports , the capacity to convert Inferred Mineral Resources into Measured and Indicated
Mineral Resources or into reserves, future opportunities for enhancing development at Zgounder, and
timing for the release of the C ompany's disclosure in connection with the foregoing. Although the
forward-looking information contained in this press release reflect management's current beliefs based
upon information currently available to management 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 expe rience, 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 ability to obtain any requisite
governmental approvals, the accuracy of Mineral Reserve and Mineral Resource Estimates (including,
but not limited to, ore tonnage and ore grade estimates), silver price, 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 risks 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 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 2020 Annual Information Form dated March 31, 2021, and in other filings of Aya with
securities and regulatory authorities which are available on SEDAR at www.sedar.com. Aya does not
undertake any obligation to update forward -looking statements should assumption s 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.