Aya Gold & Silver Inc. [AYA-TSX] on Tuesday December 15 reported spectacular high-grade silver results from its ongoing drill exploration program at the Zgounder Silver Mine in Morocco.
The company said the results confirm high-grade silver mineralization below the current mining operations with an intercept of 4.00 metres of 9,346 g/t silver, which is an all-time best within the mine’s database and includes the highest silver value of 60,000 g/t silver over 0.5 metres.
“While Zgounder had already announced several extraordinary high-grade drill results this year, these intercepts were exceptional and represent an all-time best, securing Zgounder’s position as a top-tier, high-grade, pure play silver mine,” said Aya Gold & Silver President and CEO Benoit La Salle.
“We are truly excited by the potential emerging from our work at Zgounder, which bodes well for the updated resource statement scheduled for early next year,” he said.
Aya Gold shares rallied on the news, rising 5.7% or 16 cents to $2.96. The shares are currently trading in a 52-week range of $3.50 and 82 cents.
Aya operates mining and milling facilities at its Zgounder Silver Mine, an 85%/15% joint venture between an Aya subsidiary and the Office National de Hydrocarbures et des Mines of the Kingdom of Morocco (ONHYM).
The company’s mining portfolio also includes the Boumadine polymetallic deposit, which is located in the Anti-Atlas Mountains of Eastern Morocco. This project is also held in a joint venture with ONHYM, with Aya retaining an 85% ownership stake.
DuringQ3 ended September 30, 2020, the company reported production of 113,655 ounces of silver from 26,034 tonnes of ore processed at an average grade of 217 g/t. The company also closed a private placement offering of $26.2 million.
In mid-July, 2020, the company announced a 15,000-metre exploration drilling program at Zgounder. The aim was to increase and further define resources within the East Zone of the deposit and confirm and define mineralization below the current underground mine.
Given the strength of the initial exploration results, the 15,000-metre drill program scheduled for 2020 has been expanded to 17,500 metres, the company said. As of December 11, 2020, a total of 16,226 metres of drilling had been completed, including 11,853 metres of surface and 1,862 metres of underground drilling.