Maya Gold & Silver Reports Positive NI 43 -101 Preliminary Economic Assessment Results at the Boumadine Polymetallic Mine in Morocco Project Indicates Pre-tax IRR of 56% with an NPV of US$574.8 Million And After-tax(*) IRR of 53% with an NPV of US$497.6 Million (NPV discounted at 6.5%)
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PRESS RELEASE
Maya Gold & Silver Reports Positive NI 43 -101
Preliminary Economic Assessment Results at the
Boumadine Polymetallic Mine in Morocco
Project Indicates Pre-tax IRR of 56% with an NPV of US$574.8 Million
And After-tax(*) IRR of 53% with an NPV of US$497.6 Million (NPV discounted at 6.5%)
Montreal, Québec- April 23, 2019 – Maya Gold & Silver Inc. (“Maya” or the “Corporation”) (TSX: MYA) is
pleased to announce the results of an independent NI 43-101 Preliminary Economic Assessment Study (“PEA”)
related to its Boumadine Polymetallic Mine in Morocco. The project is owned by Compagnie Minière Maya
Maroc (CMMM), a joint venture owned by Maya G&S (85%) and l'Office National des Hydrocarbures et des
Mines of the Kingdom of Morocco (15%). The PEA, which has an effective date of March 29th 2019, was
prepared by GoldMinds Geoservices Inc. of Québec City Canada (GMG). Details of the PEA technical report NI
43-101 will be available on SEDAR and Maya’s website within 45 days.
Maya started the first diamond-drilling program at Boumadine in January 2018 and such program has enabled
Maya to increase the mineral resource estimates of Boumadine above historical statements.
(*) In Morocco taxes are low 0.5% on the first five year of operation for a new company and thereafter a 17.5%
applies on profit.
Highlights of the Boumadine Polymetallic Mine PEA Study:
§ A project life of 12 years with the current resources starting in 2021 and ending in 2033;
§ Project Internal Rate of Return of 56% pre-tax and 53% after-tax;
§ Project pre-tax Net Present Value of US$574.8M (discounted at 6.5%) or US$665.9M (discounted at
5%) at variable commodity prices;
§ Project after-tax Net Present Value of US$497.6M (discounted at 6.5%) or US$576.7M (discounted at
5%) at variable commodity prices;
§ The extraction of 7.59Mt at 1.03%Pb, 3% Zn, 1.67 g/t Au, 101.76 g/t Ag and 5.4 g/t Ge for production
of 1.304M Oz of Gold Equivalent where 29.4% comes from Measured and Indicated and 70.6% from
Inferred mineral resources.
§ Milling starting at 1500tpd in June 2021 increasing to 2000 tpd during the period June 2023 until June
2033;
§ Production starts at 83,746 Ounces of Gold Eq for 2 years increasing to 105,684 ounces of Gold Eq in
the 3rd year and 109,158 per year thereafter until June 2029. Production then increases to 116,208
OzEq in 2030, 119,028 OzGEq in 2031, 120,438 OzGEq in 2032 and 129,462 OzGEq in 2033 for an
average yearly production during the entire period of 108,675 Ounces of Gold Eq;
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§ Total operating costs of US $101.72 per tonne (averaged over the expected life of the mine);
§ Capex and sustaining capital requirements of US $120.35M, where initial capex requirement is 89 M
USD;
§ The Boumadine PEA was prepared as an exclusive underground extraction of mineralized material
fresh rock with limited tonnage extraction by open pit. The reprocessing of old tailings is not included
in the economic analysis and such estimates could be enhanced by the optimization of the extraction
sequence and configuration.
§ Gold Equivalent calculation for economic analysis is:
AuEq= ((Pb% x 2,204USD/t x 60% rec)+(%Zn x 2900USD/t x 79.5% rec)+(Au g/t x 1321USD/Oz/ 31.103
x 97.2% rec)+(Ag g/t x 19$/Oz/31.103 x 96.2%rec)+(Ge g/t x 2.2$ x75% rec))/(1321 $USD/31.103)
§ The projected mine contemplates a 1500 tpd mining with processing at a flotation mill with
associated POx/CIL followed by an increase to 2000 tpd mining with the upgrades flotation mill.
Boumadine Project
Mineralisation confirmed in different sectors at Boumadine mainly with DDH.
Cautionary Statements
The PEA is preliminary in nature and includes the use of inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable them to be
categorized as mineral reserves. Thus, there is no certainty that the results stated in the PEA will be realized.
Actual results may vary, perhaps materially. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Additional exploration work is required to increase the quality of the mineral
resources.
Message from the Founder, President & CEO
Noureddine Mokaddem, Founder, President & CEO of Maya, stated: "These positive results of the PEA mark an
important milestone reached at the Boumadine project. We are very excited to see such high NPV projections in
particular as the present drilling did certainly not reveal all the potential of the Boumadine property. The
financial projections outlined in the PEA are very encouraging, indicating the potential economic viability of the
known resources and supporting our belief that Boumadine is yet another robust project of Maya with the
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potential to grow into an important polymetallic producer. These results reinforce our initial assumption that the
Boumadine mine could change the future of Maya Gold&Silver.”
Mineral Resource Used in the PEA
The NI 43-101 PEA Study was based on the diluted mineral resource estimate prepared by GMG. The table
below summarizes the mineral resource estimated by GMG combining all the mineralized zones.
A cut-off grade of 85USDEq was applied for the underground mineral resources.
USDEq= (Au g/t x 41.8) + (Ag g/t x 0.5) + (Zn% x 28.75) + (Pb% x 20.1) + (Ge g/t x 2.2).
Elements Oz price
Au 1300 USD
Ag 15,5 USD
Elements ton price
Zn 2875 USD
Pb 2010 USD
Ge 2 200 000 USD
Mineral resources
estimates Au g/t Ag g/t Zn% Pb% Ge g/t USDEq Au eq Tonnes
Total Measured 3,89 142,12 0,54 0,13 0,00 251,65 6,02 337 000
Total Indicated 1,57 127,88 3,06 1,20 3,90 250,45 6,00 2 195 000
Total Meas & Ind 1,88 129,77 2,73 1,06 3,38 250,61 6,00 2 532 000
Total Inferred 1,56 89,55 2,73 1,16 5,08 222,96 5,31 6 451 000
Total mineral resource estimates at Boumadine polymetallic mine including the tailings (rounded numbers).
Resources not
including the tailings Au g/t Ag g/t Zn% Pb% Ge g/t USDEq Au eq Tonnes
Total Measured 7,76 137,52 1,86 0,43 455,40 10,89 98 000
Total Indicated 1,57 127,88 3,06 1,20 3,90 250,45 6,00 2 195 000
Total Meas & Ind 1,84 128,29 3,01 1,17 3,74 259,19 6,21 2 293 000
Total Inferred 1,56 89,55 2,73 1,16 5,08 222,96 5,31 6 451 000
Mineral resource estimates at Boumadine polymetallic mine excluding the tailings (rounded numbers).
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Detailed mineral resources estimate by zones (ne: not estimated).
Note: 7.59Mt of mineralized material is used in the PEA calculation, resources at depth in Zone Centre and
Sud as well as old tailings are not used in the preliminary economic assessment.
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Project Economics
A summary of the base case parameters and assumptions are shown below:
Project Base Case Economic Parameters and Assumptions
Items Units Values
Silver price (yearly average) US/oz $21.00
Gold Price (yearly average) US/oz $1,380.00
Lead Price (Yearly average) US/t $2,501
Zinc Price (Yearly average) US/t $3,125
Germanium (Yearly average) US/Kg $2,200
Processed tonnage over LoM metric tonne 7,590,000
Silver metal production ounces 19,734,105
Gold metal production ounces 327,226
Lead metal production metric tonne 38,749
Zinc metal production metric tonne 149,540
Germanium metal production kg 16,150
Royalty on sales (ONHYM) % 3.0
Maya Management Fees % 2.75
Taxes for the first 5 years on gross
revenues for a new company % 0.5
Taxes after the first 5 years on profits % 17.5
The project cash flow summary of the base case is shown in the following table:
Project Cash Flow Summary BOUMADINE
Items Value
USS
Total revenue of sales $1,731,996,000
Total operating costs $772,050,000
Pre-tax discounted (6.5%) NPV $574,821,000
After-tax discounted (6.5%) NPV $497,650,000
Operating Costs
The operating costs, also called operating expenditures (Opex), are expressed in USD per tonne processed, and
are summarized below. This next Table outlines the costs of the total project.
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Operating Costs
Items Cost Cost
US US/t milled
Waste development cost $9,108,000 $1.20
Mineralized Material production cost $210,243,000 $27.70
Mineralized Material process cost $347,305,200 $45.76
Concentrate transport & Refiner cots 92,522,100 12.19
Administration & Environment $13,282,500 $1.75
Royalties & Management fees $99,589,758 $13.12
Total $772,050,558 $101.72
Note: The internal shaft, main ramps with all major underground developments of the mines are in the Capex
with sustaining capital. Provision for additional underground development is taken into account with a 15%
waste development cost on mineralized material mined.
Capital Costs
The breakdown of the surface, mill and underground remaining capital cost expenditures (Capex) and sustaining
capital to materialize the study is summarized in the following table. It is important to note that the Boumadine
project capital costs start with mining and processing of 1500 tpd and quick ramp-up after two years to 2000 tpd
ROM. Capital expenditures are aligned with this plan.
It is important to mention that operating costs are based on existing real cost adapted to up scaling scenarios.
Moreover, the mill capital cost estimates are based on real effective costs of Maya Maroc Zgounder Mine for the
500 tpd flotation Mill whose total cost amounted to 6.9 MUSD. This mill is installed and up and running.
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Capex Summary
Description Cost - US
Power Line + Power Stations $3 000 000
Flotation + POx/CIL Mill 15000 tpd $ 35 000 000
Well, pumps and water line $ 2 500 000
Fresh water reservoir $ 350 000
Main Ramps/Drift $ 10 885 000
New Tailings $ 2 500,000
Site Preparation Road $ 1 000 000
Pick-up trucks $ 350 000
Staff Mini-buses $ 300 000
Utility Loader and truck $ 350 000
Security system & Camera $ 250,000
Explosive magazine $800 000
Expansion 2000 t/d 50% $ 5 000 000
Generators $ 2 100 000
Fuel tanks $ 100 000
Exploration Drilling & Studies $ 5 000 000
Water Treatment plant $ 550 000
UG Equipment $ 9 600 000
Gate & balance $ 250 000
Communication system $500 000
Sub-Total $80 985 000
Contingencies $ 8 098 500
Total initial capex $89 083 500
1US$=10Dirhams
The initial capex cover the time to build and 4 years of operation, while other Capex associated with explosive
storage, garage, warehouse, ventilation, mining equipment, development works total $21,267,000. In
addition, $5,000,000 are foreseen for the mill upgrade and another $5,000,000 for the sustaining capital. The
total of capex of the project is $120,350,500.
A contingency of 10% on the initial Capex has been added even if it is a preliminary economic assessment with a
+/- 30% precision.
Mining
The Boumadine deposit assumes the processing of an average of 1500 tpd for the first two year starting June
2021 with an envisioned expansion to 2000 tpd forecasted for the rest of the mine life 2033.
In Boumadine, there are 5 mining zones called: Centre, Sud, Nord, Tizi and Imariren.
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The mining will start with a small open pit at Imariren that will produce 100,000m.t. per year for two years.
During the same period a ramp from surface will start for the zones Centre and Nord to be ready to produce
1500m.t. per day including the Imariren open pit for two years starting year 2021.
All infrastructures such as: plant, offices, garage, warehouse etc, will be lo cated at the Centre zone due to the
fact that zone is the largest one in tonnage out of the 5.
Starting year 2023, the production will climb to 2000m.t. per day up to the end of the mine life which is the year
2033 if there is no other addition to the actual total tonnage. We are assuming 330 days of mining production
per year.
During the year 2026, a ramp will start for zone South and the same for zones Tizi and Imariren during the year
2028.
The various zones of the deposit are located in competent rock and have steep overall dip, making it easily
mined using free falling methods and cut and fill method (same method as at Zgounder). It is recommended to
use as much as we can the open long-hole mining method with sub-levels for the proposed new mining sites.
The Nord zone is wide and will be in the long-hole stoping category.
The 5 zones will have a main ramp from surface and will have a second exit for ventilation and escape way from
actual shafts from Centre, Sud and Tizi and new raise development for Imariren and Nord from bottom to
surface. Raise extensions will have to be completed to connect the actual shaft and the bottom of the zone for
Sud, Centre and Tizi. Raising will be done by Alimak method.
The various main ramp will have a dimension of 4.5m by 3.5m .
Each zone will have their own compressed air system, electricity, explosive storage room and a backup
generator in case of power loss to keep the underground ventilation working.
For mining equipment, 1 boom jumbo, scooptram (3t.) and 5 cubic meters dumpers will be the main equipment
used.
During the life of the mine , the mining equipment will go from one zone to develop a next zone thus saving
capex on equipment due to the fact that each zone will be mined more or less the same way and not at the
same time.
Since, there is no production shaft but only a main ramp for each zone, all mineralized material will be hauled
via trucks up to surface and transferred into bigger trucks to be hauled at the plant near Centre zone. Production
shaft is not viable for now due to the shallowness of each zone.
Metallurgy and Processing
Feed rate to the mill will be 1500 tpd from June 2021 to June 2023 to be increased to 2000 tpd from June 2023
until depletion of the actual known resources.
Even if for the first two years of operation the feed rate to the mill will be only 1500 tpd, the mill building will be
built as to immediately accommodate the future 2000 tpd operation.
Feed to the mill will principally come from the Boumadine open pit and underground fresh material. Milling of
the old tailings will only compensate for the lack of fresh feed coming from the mining operation and will
essentially take place whenever there will be a shortage of fresh feed to the mill.