Maya GOLD & Silver Reports 2019 Financial Results, Appoints New Key Management Including New CFO and Announces Delay IN Filing of First Quarter 2020 Financial Statements and Md&a Montreal, Québec
Maya Gold & Silver Inc.
1320 Graham, Suite 132
Ville Mont-Royal, Québec
H3P 3C8
PRESS RELEASE FOR IMMEDIATE RELEASE
MAYA GOLD & SILVER REPORTS 2019 FINANCIAL RESULTS,
APPOINTS NEW KEY MANAGEMENT INCLUDING NEW CFO AND
ANNOUNCES DELAY IN FILING OF FIRST QUARTER 2020
FINANCIAL STATEMENTS AND MD&A
Montreal, Québec – May 14 th , 2020 – Maya Gold & Silver Inc. (“Maya” or the “Co mpany”) (TSX:
MYA) is pleased to announce the results of operations a nd activities for the year ended December 31,
2019. All amounts are in US dollars unless otherwise stated.
2019 Highlights:
• The start of commercial production at the Zgounder Mine on January 1, 2019;
• Total silver production reached 452,416 ounces com pared to 258,469 ounces in 2018;
• Revenue from silver sales was $6,081,400;
• Cash flows from operations for the year were $3,57 4,536 compared to ($1,642,084) for 2018,
an increase of $5,216,620;
• Net loss of $576,513 for 2019 compared to a net lo ss of $2,663,826 in 2018;
• Strong cash position of $16,621,291 as at December 31, 2019
2019 Financial Highlights:
“2019 was a significant year for the Company as it w itnessed its first commercial production at its
flagship Zgounder Mine despite several challenges a nd unfavorable climatic conditions. We look
forward with cautious optimism to 2020, which may be impacted by operational challenges such as the
COVID-19 pandemic,” said President and CEO Mr. Benoit La Salle.
The following includes some of the financial highli ghts for the year:
• Cash on hand of $16,621,291 as at December 31, 201 9 compared to $19,000,163 as at
December 31, 2018;
• Revenue from the sale of silver was $6,081,400 com pared to nil in 2018;
• Cost of sales was $4,766,577 compared to nil in 20 18;
• Gross margin during the year was $1,314,823;
• Average realized silver price of $14.28 per ounce compared to a yearly average price of $16.22
per ounce. This is due to the sale of silver concen trate, which was sold at a discount and was
subject to smelter fees;
• Cash flows from operations for the year were $3,57 4,536 compared to -$1,642,084 for 2018,
an increase of $5,216,620;
• Net loss of $576,513 for 2019 compared to a net lo ss of $2,663,826 in 2018.
2019 Operational Highlights:
In 2019, with the commissioning phase of the Zgounder Silver Mill flotation circuit completed, reporting
on a commercial production basis started from January 1, 2019.
The following includes some of the operational highlights from the Zgounder Silver Mine:
• Total silver production reached 452,416 ounces com pared to 258,469 ounces in 2019;
• Extracted and treated ore reached 158,408 and 100, 667, respectively in 2019, an increase of
167% and 153% from 2018 (59,232 extracted and 39,76 4 treated tons);
• Feed ore grade to the mill in 2019 was 217.6 g/t c ompared to 278.5 g/t in 2018;
• New commercial contracts to sell silver concentrat e ore were entered into Q3 and Q4.
The tables below provide some more detailed information as to the production and costs.
Table 1: Production summary for 12-month period end ing December 31, 2019 and 2018
Unit 2019 2018 Variation
Extracted tonnage t 158,408 59,232 167%
Treated tonnage t 100,667 39,763 153%
Feed material silver grade g/t 217.6 278.5 (22%)
Silver concentrate production t 7,306.42 - -
Concentrate tons to Cyanidation t 5,843.62 - -
Metal silver ingots produced Oz 286,294 258,469 11%
Total metal produced (ingots &
silver concentrate) Oz 452,416 258,469 75%
Table 2: Zgounder production cost analysis for 12-m onth period ending December 31, 2019 and 2018
Unit 2019 2018 Variation
Production Oz 452,416 258,469 75%
Mining cost $/Oz 2.12 3.08 -31%
Mill Cyanidation cost $/Oz 1.98 6.21 -68%
Mill Flotation cost $/Oz 2.58 - -
Total production cost $/Oz 6.68 9.29 -28%
* USD/MAD FX effects included: 2019: 9.615, 2018: 9.3606
* Comparative figures for 2018 which were incurred prior to commercial operations reporting,
represent amounts and costs capitalized and included as mining assets under development
The difference in silver production for the year en ded December 31, 2019 compared to 2018 is due to
the achievement of commercial production in January 1, 2019. In 2018, the Company installed a mill
and faced an unprecedented amount of snowfall durin g that period, making conditions at the mine
extremely challenging.
The decrease in average grade (g/t Ag) was due to the start of the gravity-flotation process as the mine
was transitioning with preparation work. As a resul t, it processed lower grade material prior to the u se
of direct cyanidation.
The Company has implemented multiple cost cutting a nd productivity improvement initiatives to
increase operational and financial performance. The se measures include connecting the mine to the
national grid and the introduction of flotation cel ls, which will increase the daily tonnage capacity, etc.
Additional actions are being taken to reduce costs further and optimize operations and throughput.
2019 Development and Exploration Highlights:
In 2019, the Company announced the start of a 51,000-meter drill program at its Zgounder, Boumadine,
and Azegour properties which included 31,000 meters at Zgounder, 10,000 meters at Boumadine, and
10,000 meters at Azegour. Note that 3,298 meters of reverse circulation drilling and 1,184 meters of
diamond drilling was completed on the Zgounder prop erty and 3,959 meters of diamond drilling was
completed on the Boumadine property. No drilling was completed on the Azegour property.
Key Appointments
Pursuant to the nomination of Mr. Benoit La Salle FCPA, CPA as President and Chief Executive Officer,
the Company is also very pleased to announce that, in its transition to a producing and emerging
producer in the region, and in order to help it ach ieve a high standard of operational rigor and
excellence, it has appointed Mr. Ugo Landry-Tolszcz uk, Ing., CFA as Chief Financial Officer of the
Company effective immediately. Mr. Landry Tolszczuk will be responsible for all financial matters of the
Company and for instituting effective controls, pro cedures and methods necessary for a rigorous
operation as well as transparent and effective reporting.
Prior to his appoint as CFO of Company, Mr. Landry- Tolszczuk was President and Chief Operating
Officer of a West African mining company in January 2018 where he had held leading roles of increasing
responsibility within the organization including He ad of the Technical Committee. Prior experience
includes his tenure as Director of Operations at Wi ndiga Energy Inc., a Canadian-based independent
power producer, where his responsibilities included corporate operations, financing and project
development in Africa. Mr. Landry-Tolszczuk holds a n honours bachelor of Applied Science in
Computer Engineering from the University of Waterloo and is a CFA charterholder.
Furthermore, the Company is also pleased to announc e the appointment of Mr. Mustapha Elouafi as
General Manager and President of Maya Gold and Silv er Morocco. Mr. Elouafi is a Senior Mining
Executive with more than 25 years of mining and sen ior management experience in Morocco and
MENA. Most recently, he was the Managing Director ( Deputy CEO) of OCP S.A., the world's largest
producer of phosphate and phosphate-based products. Mr. Elouafi was responsible for strategic
industrial and mining project initiatives in addition to strategic partnerships. At the same time, Mr. Elouafi
was President of various affiliate of OCP Group including OCP Africa where he managed major project
initiatives in Ethiopia, Nigeria, Ghana, Tanzania, and Rwanda. Mr. Elouafi started his career as minin g
engineer in the world largest phosphate mine in Kho uribga-Morocco and acquired extensive industrial
experience as General Manager of the world’s largest phosphate processing hub in Jorf Lasfar-Morocco
where he managed more than 4500 employees. Mr. Elou afi earned an Executive MBA at École des
Ponts Business School (Paris) during 2010/11 and Ma jored in Civil Engineering in 1992 at The
Mohammadia School of Engineers in Morocco.
The Company also announced the appointment of Mr. A lex Ball as Vice President, Corporate
Development and Investor Relations. Mr. Ball’s industry experience includes in excess of $5 billion in
global mining related transactions in equity and debt, and M&A with leading investment banks including
UBS, CIBC, and BMO Capital Markets. Most recently, Mr. Ball was Executive Vice President, Finance
and Corporate Development with Algold Resources Ltd . where the company raised over $30 million in
equity and completed several complex debt and royal ty transactions to help advance the Tijirit Project
in Mauritania. Alex also worked as an Investment An alyst with OMERS, one of Canada’s largest
pension plans with over $100 billion in assets unde r management. Mr. Ball completed his MBA in
Finance at Toronto’s Rotman School of Management an d obtained his BA in Economics from McGill
University.
“We are transitioning to the next phase of developme nt and growth and are currently reviewing our
operations to develop and implement a plan to stabilize, optimize, advance, and maximize value at both
the Zgounder Silver Mine and the Boumadine Polymeta llic Project ” said Benoit La Salle. “ We are also
integrating internal policies and adding seasoned mining and financial executives with an excess of 50
years of cumulative experience to improve performance and deliver value for our shareholders .”
Postponement of filings of its Q1 financial stateme nts and MD&A
The Company also wishes to announce that it has pos tponed filing its 2020 first quarter financial
statements, and management's discussion and analysi s for the quarter ended March 31, 2020
(collectively the “2020 Q1 documents”), due to logistics and delays caused by the COVID-19 pandemic.
Maya is relying on exemptive relief recently granted by Canadian securities regulatory authorities, which
provides for up to a 45-day extension for periodic filings normally required to be made by reporting
issuers on or before June 1, 2020 and advises that it expects to file its 2020 Q1 documents in mid-June
2020. Until such time as the Q1 2020 documents are filed, Maya’s management and other insiders are
subject to a trading blackout that reflects the principles contained in section 9 of National Policy 11-207
– Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.
Except for the corporate updates announced on April 24, 2020 and the key appointments disclosed in
this press release, there have been no material business developments since the date of the last interim
financial statements, filed on November 14, 2019, a copy of which is available on SEDAR at
www.sedar.com.
Qualified Persons
The technical content of this news release has been reviewed by Merouane Rachidi, P.Geo., Ph.D. and
Claude Duplessis Eng., from GoldMinds Geoservices Inc, independent Qualified Persons under NI 43-
101 standards, based on the information received from the Maya Gold & Silver technical team.
About Maya Gold & Silver Inc.
Maya Gold & Silver Inc. is a publicly traded Canadi an company focused on the operation, exploration,
acquisition and development of silver and gold deposits. Maya is currently operating mining and milling
facilities at its Zgounder Mine, an 85%-15% joint venture between its subsidiary, ZMSM, 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 Maya retains an 85% ownership.
Additionally, the Company’s portfolio includes the Amizmiz and Azegour properties, with gold, tungsten,
molybdenum and copper occurrences covering over 100 square kilometres in a historical mining district
of Morocco.
For additional information, please visit Maya’s website at www.mayagoldsilver.com
Or contact:
Benoit La Salle, FCPA FCA
President & CEO
Tel: +1 (514) 951-4411
Alex Ball
VP, Corporate D evelopment & IR
Tel: +1 (647) 919-2227
Forward-Looking Statements
This press release contains forward-looking stateme nts. All statements other than statements of
present or historical facts are forward-looking. Forward-looking statements involve known and unknown
risks, uncertainties and assumptions and accordingl y, actual results and future events could differ
materially from those expressed or implied in such statements. You are hence cautioned not to place
undue reliance on forward-looking statements. Forwa rd-looking statements include words or
expressions such as “strong”, “improving”, “looking forward’, “steady”, “emerging”, “transition”,
“stabilize”, “optimize”, “advance”, “maximize”, “improve”, “deliver”, and other similar words or
expressions. Factors that could cause future result s or events to differ materially from current
expectations expressed or implied by the forward-lo oking statements include the ability to (i) maintai n
a steady production for the year 2020, (ii) the capacity to put in place effective controls, procedures and
methods necessary for a rigorous operation as well as transparent and effective reporting, and (iii) t he
capacity to implement a plan to stabilize, optimize, advance, and maximize value at both the Zgounder
Silver Mine and the Boumadine Polymetallic Project, as well as the ability to increase reserves and
resources, the ability to execute on our strategic focus, fluctuation in the price of currencies, silv er or
operating costs, mining industry risks, uncertainty as to calculation of mineral reserves and resource s,
delays, political and social stability in Africa and Morocco in particular, (including our ability to maintain
or renew licenses and permits), the security of our operations and other risks described in Maya’s
documents filed with Canadian securities regulatory authorities. You can find further information with
respect to these and other risks in Maya’s 2019 Ann ual MD&A and other filings made with Canadian
securities regulatory authorities and available at www.sedar.com. These documents are also available
on our website at www.mayagoldsilver.com. Maya disc laims any obligation to update or revise these
forward-looking statements, except as required by applicable law.