Canada’s mining Company Aya Gold & Silver has revised up the after-tax net value of its Boumadine project in Morocco to $3.5 billion with soaring gold and silver price on the international market.
The updated preliminary economic assessment gives the gold-silver-zinc-lead project a 93% internal rate of return and 0.7-year payback at $3,500 per oz. gold and $50 per oz. silver. Initial capital is estimated at $463 million, up from $446 million, while mine life increases to 14 years from 11.
According to analysts, Boumadine is expected to produce 2.25 million oz. gold, 81.2 million oz. silver, 422,000 tonnes zinc and 195,000 tonnes lead over 14 years. Silver output rises 16% from the previous study, while gold production slips 4%.
The precious-metal and polymetallic mining development project is located in southern Morocco. It is structured as a joint venture where Aya Gold & Silver holds an 85% interest and Morocco’s national mining office, ONHYM (Office National des Hydrocarbures et des Mines), holds the remaining 15% stake.
Boumadine’s land package covers 339 km², with an additional 600 km² under exploration authorization, for a total area encompassing 31 permits and licenses.
