Aya Gold & Silver Boosts Boumadine Project Valuation to $3.5 Billion

In a significant development for the Canadian mining sector, Aya Gold & Silver has revised the after-tax net asset value of its Boumadine project located in Morocco to an impressive $3.5 billion. This adjustment comes in light of the soaring prices of gold and silver in the international market, reflecting the growing economic potential of the project. The updated preliminary economic assessment indicates a remarkable internal rate of return of 93% and a payback period of just 0.7 years, based on gold priced at $3,500 per ounce and silver at $50 per ounce.

The initial capital investment for the Boumadine project has also been revised upwards, now estimated at $463 million, up from the previous figure of $446 million. Furthermore, the projected mine life has extended to 14 years, an increase from the earlier estimate of 11 years, underscoring the project's long-term viability and profitability.

Analysts project that over the duration of the mine's life, Boumadine will yield approximately 2.25 million ounces of gold, 81.2 million ounces of silver, alongside 422,000 tonnes of zinc and 195,000 tonnes of lead. Notably, the anticipated silver output has risen by 16% compared to previous assessments, while gold production is expected to see a slight dip of 4%. This polymetallic mining development is situated in southern Morocco, structured as a joint venture where Aya Gold & Silver holds an 85% interest, while Morocco’s national mining office, ONHYM (Office National des Hydrocarbures et des Mines), retains the remaining 15% stake.

The Boumadine project encompasses a land area of 339 square kilometers, with an additional 600 square kilometers currently under exploration authorization, resulting in a total of 31 permits and licenses being held for the project. This strategic positioning and resource availability not only enhance the operational scope but also signify the project’s potential to contribute significantly to the region's economic landscape.

As reported by northafricapost.com.