Quebec-based Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF) has entered a contract that will help to increase the milling capacity of its Zgounder Mine in Morocco by 2,000 tonnes per day.
On Thursday, the company announced its Zgounder Millenium Silver Mining SA subsidiary’s engineering, procurement and construction (EPC) contract with Duro Felguera S.A. (BME: MDF) for building a processing plant at Aya’s North Africa mining site.
The contract is worth US$78 million and will enable Aya’s subsidiary to increase its milling capacity at the Moroccan site to a total of 2,700 tonnes per day.
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Aya says the EPC contract with Duro Felguera constitutes a substantial portion of the entire expansion project currently underway. The company has also awarded contracts to unnamed parties for the construction of a ball mill and crushing equipment package which it says aligns with the expansion development timeline at the site.
“We are delighted to announce two long-lead milestones including the EPC contract and the ball mill purchase order, both of which are critical to delivering the first silver pour by end of Q1-2024. We are also very proud of our partnership with DF, a long-established construction and engineering firm with deep expertise in turnkey mining projects,” said Benoit La Salle, President & CEO of Aya Gold & Silver.
“During its over 160 years of mining experience, Spain-based DF has provided customized solutions for mining projects globally. With a fixed price EPC Contract in place, we are mitigating cost overrun risks for the expansion which is proceeding on time and on budget.”
The company says receiving quotes from a pre-approved list of vendors for 21 mechanical equipment packages which include “critical path long-lead items” needed at the Zgounder mine was a critical milestone for the project.
Aya also completed about 2,250 metres of permanent underground infrastructure on the site at the end of September and developed freshwater storage facilities before the commissioning of the new processing plant being built by Duro Felguera.