Casablanca – Canadian mining company Aya Gold & Silver has significantly increased the estimated economic value of its Boumadine polymetallic project in Morocco, with an updated preliminary economic assessment placing its after-tax net present value at $3.5 billion. The revised valuation represents a substantial increase from the previous assessment and comes as the company expands drilling, advances feasibility work and evaluates the project’s potential development.
Boumadine has become one of Aya Gold & Silver’s main development projects in Morocco and is expected to play an important role in its longer-term production plans. The project remains at the development stage, however, meaning that its current economic and production figures are projections rather than results from an operating mine.
The latest assessment values Boumadine at $3.5 billion on an after-tax basis using a 5% discount rate, compared with about $1.5 billion in the previous assessment. The projected internal rate of return has also increased sharply to 93%, while the estimated payback period has fallen to about eight months from the start of production.
The stronger economic outlook is linked to several changes in the project’s assumptions. Aya has raised the metal prices used in its base case, expanded its drilling program, increased the amount of payable metal expected to be produced and extended the projected mine life.
The latest base case assumes a gold price of $3,500 per ounce and a silver price of $50 per ounce, compared with $2,800 and $30 respectively in the previous assessment. The updated assumptions also include prices of $1.37 per pound for zinc and $0.90 per pound for lead.
The company’s projected initial capital requirement stands at about $463 million, broadly similar to the earlier estimate. The relatively moderate capital requirement compared with the project’s projected economic value is one of the factors behind the sharp improvement in its estimated financial returns.
Under the latest development plan, Boumadine would have an expected mine life of 14 years, compared with 11 years in the previous assessment. The operation would combine open-pit and underground mining and would use a conventional flotation plant capable of processing approximately 2.9 million tonnes of ore per year.
The planned operation would produce three marketable concentrates containing zinc, lead and pyrite. Precious metals are nevertheless expected to generate most of the project’s revenue, with gold accounting for about 57% and silver approximately 30% under the current assumptions.
Silver is particularly important to Aya because the company already operates one of Morocco’s major silver mines. Its Zgounder mine recorded a substantial increase in output in 2025, producing 4.82 million ounces of silver, equivalent to roughly 149 tonnes. Production increased by 193% compared with the previous year.
The strong performance of Zgounder provides Aya with an established production base while it develops Boumadine. If the latter project reaches commercial production as currently projected, it could significantly increase the company’s output of precious metals and add production of zinc, lead and pyrite.
The latest assessment estimates Boumadine’s silver potential at 81.2 million ounces, up from 69.8 million ounces in the previous study. The increase reflects additional drilling and a better understanding of the mineralized zones. The company is continuing exploration across the wider district, where mineralization remains open in several directions.
Aya has substantially expanded its drilling activities at Boumadine. The program is designed to increase geological knowledge, improve confidence in the mineral resource estimates and provide information needed to advance the project toward a feasibility study and eventual development decision.
The company’s feasibility work is currently focused on drilling, engineering and optimization. These studies are expected to refine the mine plan, processing approach, infrastructure requirements, capital expenditure and operating costs. Completion of the feasibility study is currently targeted for the end of 2027.
Boumadine is located in Morocco’s Errachidia Province. The main mining license covers approximately 32 square kilometers, while additional exploration licenses extend across a much larger surrounding area. The size of the licensed district gives Aya further scope to investigate mineralization beyond the zones currently incorporated into the project’s economic assessment.
Infrastructure forms another part of the development plan. Water sources have been identified and a supply plan is being developed for the future operation. Electricity is expected to be supplied through a dedicated 72-kilometer power line connecting the project to Morocco’s national grid.
The project would also have access to road and rail infrastructure, providing several options for transporting equipment and future mineral production. Planned logistics routes include connections toward the Nador West Med port and national highways. The site’s topography is considered suitable for a planned tailings storage facility.
The proposed mine would require the construction of a new processing facility along with workshops, warehouses and administrative buildings. These facilities would form the main operational infrastructure for the project once construction begins.
Despite the sharp increase in the estimated economic value, Boumadine remains subject to the risks normally associated with a development-stage mining project. The preliminary economic assessment is an early-stage study and does not guarantee that the project will be developed or achieve the production and financial results currently projected.
The mineral resources used in the assessment also include inferred resources, which have a lower level of geological confidence and cannot be treated as mineral reserves. Additional drilling and technical work will therefore be necessary to determine how much of the estimated resource can eventually be converted into economically mineable reserves.
Metal prices represent another important variable. The latest economic projections are based on significantly higher gold and silver price assumptions than those used in the previous assessment. A sustained change in international metal prices could therefore affect the project’s future economics, while changes in construction costs, energy prices, processing performance or recovery rates could also alter its financial returns.
The feasibility study is expected to provide a more detailed assessment of these factors, including the project’s expected production levels, investment requirements, operating costs and potential mine plan, before Aya considers a final development decision.
For Morocco’s mining sector, Boumadine could become a significant new source of precious and base-metal production if the current projections are confirmed. The project would add to the country’s existing mining operations and could create additional demand for infrastructure, engineering, transport and other services.
For Aya, the project offers the possibility of creating a second major production platform in Morocco alongside Zgounder. While Zgounder is already generating silver production, Boumadine could eventually provide a broader mix of gold, silver, zinc, lead and pyrite.
The immediate priority is therefore to move the project from preliminary assessment toward a more detailed feasibility case. Continued drilling and engineering work will determine whether the current resource estimates and economic projections can be sustained as the level of technical knowledge increases.
The $3.5 billion valuation marks a major improvement in Boumadine’s projected economics compared with the previous assessment. However, the figure remains an estimate based on a set of assumptions that will need to be tested through further studies. The results of the ongoing feasibility work and exploration program will ultimately determine the project’s scale, investment requirements and prospects for commercial development.
