African Mining Network

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AMN - MOROCCO: Positive PEA for Boumadine

Maya Gold & Silver Inc has received positive results from an independent NI 43-101 Preliminary Economic Assessment Study (PEA) related to its Boumadine Polymetallic Mine in Morocco. The project is owned by Compagnie Miniere 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 29, 2019, was prepared by GoldMinds Geoservices Inc of Quebec City Canada (GMG).

Maya started the first diamond-drilling program at Boumadine in January 2018 and such program has enabled Maya to increase the resource estimates of Boumadine above historical statements.

The PEA outlines a project life of 12 years with the current resources starting in 2021 and ending in 2033. The project Internal Rate of Return has been calculated of 56% pre-tax and 53% after-tax.

It estimates a project pre-tax Net Present Value of US$574.8 million (discounted at 6.5%) or US$665.9 million (discounted at 5%) at variable commodity prices. The after-tax NPV is US$497.6 million (discounted at 6.5%) or US$576.7 million (discounted at 5%) at variable commodity prices.

These figures are based on the extraction of 7.59 million tonnes at 1.03% lead, 3% zinc, 1.67 g/t gold, 101.76 g/t silver and 5.4 g/t germanium for production of 1.304 million ounces of gold equivalent where 29.4% comes from measured and indicated and 70.6% from inferred mineral resources.

Milling is expected to start at a daily rate of 1500 tonnes in June 2021, increasing to 2000 tonnes during the period June 2023 until June 2033.

Production starts at 83,746 ounces of gold equivalent for two years increasing to 105,684 ounces in the third year and 109,158 per year thereafter until June 2029.

Production then increases to 116,208 equivalent ounces in 2030, 119,028 ounces in 2031, 120,438 ounces in 2032 and 129,462 ounces in 2033 for an average yearly production during the entire period of 108,675 ounces of gold equivalent.

Total operating costs averaged over the expected life of the mine are estimated at US$101.72 per tonne.

The Boumadine PEA was prepared as an exclusive underground extraction of mineralised 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 optimisation of the extraction sequence and configuration.

Maya's founder, president and CEO Noureddine Mokaddem said: "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 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 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."