Aya Gold & Silver (TSX: AYA; US-OTC: AYASF) boosted the indicated resource at its Boumadine project in Morocco by 160% and the inferred resource by 24% over the previous report from last April.
Indicated resources now stand at 5.2 million tonnes grading 91 grams silver per tonne, 2.78 grams gold, 2.8% zinc and 0.85% lead, the company said Monday. Compared with April, contained metal has increased by 107% to 15.1 million oz. silver, 449,000 oz. gold, 145,000 tonnes zinc and 44,000 tonnes lead.
“In under three years, we have grown silver and gold ounces across all classifications, demonstrating the team’s ability to identify and grow Boumadine into a world-class asset,” president and CEO Benoit La Salle said in a release.
24% more inferred tonnes
Boumadine’s inferred resources now total 29.2 million tonnes grading 82 grams silver, 2.63 grams gold, 2.11% zinc and 0.82% lead. Contained metal increased by 19%, to 76.8 million oz. silver, 2.4 million oz. gold, 615,000 tonnes zinc and 237,000 lead.
Almost half, or 49%, of the inferred resource is pit-constrained and reported above a cut-off net smelter royalty (NSR) value of $95 per tonne, and 51% suited for underground development, with an NSR cut-off value of $125 per tonne.
Drilling at Boumadine, located about 550 km south of the Moroccan capital Rabat, has allowed the company to expand its footprint by almost 850%, La Salle added. Studies from ongoing metallurgical work at Boumadine are helping advance the project towards large-scale development.
Aya shares fell 3.4% to C$11.87 apiece on Tuesday afternoon in Toronto, giving the company a market capitalization of $1.56 billion. They have gained 24% over the last year, in a range of $9.53 to $19.56.
‘Impressive discovery’
Aya’s resource update prompted SCP Resource Finance analyst Justin Chan to increase his value estimation for Boumadine by US$150 million to $550 million. Chan maintained his buy rating while raising the price target to C$21.25 per share from $20 apiece.
“(At) 5.2 million gold-equivalent oz. at 4.8 grams gold-equivalent, on a mining permit, in a low-cost country to operate makes Boumadine one of the most impressive discoveries of recent years,” Chan said.
He added that with 14 rigs active at the site on a 140,000-metre program, he expects Aya “to add ounces quickly, especially now that they have consolidated the district.”
Aya has acquired 24 new exploration permits in and around Boumadine since June 2023. The historic operation produced about 261,485 tonnes at 200 grams silver, 3.5 grams gold, 3.8% zinc and 1.5% lead between 1989 and 1992.
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