Canadian mining company Aya Gold & Silver Inc. has initiated a strategic project to extract and sell precious metals from a historical stockpile at its Boumadine property in Morocco. This initiative is designed to generate near-term cash flow while simultaneously advancing the environmental rehabilitation of the site.
Transforming Legacy Waste into Value
The project focuses on a flotation stockpile rich in pyrite concentrate, a by-product generated during legacy lead and zinc mining operations in the late 1980s and early 1990s. This material contains commercially meaningful grades of gold and silver that were not fully recovered at the time. By processing this stockpile now, Aya is unlocking latent value from past activities.
The corporation has secured an offtake agreement with an international buyer for the purchase of this material. Production is slated to occur over the next 20 to 24 months, with an estimated shipment rate of 10,000 tonnes per month until the recoverable material is exhausted.
Substantial Production and Environmental Benefits
Over the project's lifespan, Aya anticipates producing and shipping approximately 2.5 million silver-equivalent ounces. The stockpile is estimated to have average resource grades of about 2.30 grams per tonne of gold and 144 grams per tonne of silver.
Beyond the financial upside, this project delivers significant environmental benefits. Removing the acid-generating pyrite concentrate from the site, located near the planned open pit, helps reduce the environmental footprint of the historical operations and supports the broader rehabilitation of the area.
CEO Highlights Dual Advantages
Benoit La Salle, President and CEO of Aya Gold & Silver, emphasized the project's dual purpose. He stated that the commercialization cleans up legacy operations by removing unwanted material and helps establish commercial relationships with future offtakers for the pyrite product the mine will produce during its main operational phase.
La Salle noted that "Unlocking value from legacy pyrite concentrate highlights the commercial potential and marketability of the gold- and silver-rich pyrite concentrate that Boumadine will produce during operation." The decision to proceed was bolstered by favourable market conditions, including strong precious metal prices and ongoing demand for sulfur, which confirmed the project's commercial viability.
