The company planned to expand capacity at its flagship mine from 700 tonnes per day to 2,700t/d.
With a base case for project economics of US$22 per ounce of silver, Aya noted an after tax 5% NPV for the expansion of US$373 million and after-tax IRR of 48%. The initial mine life was 11 years with an all-in sustaining cost of US$9.58/oz, including sustaining capital expenditures.
"With its low capital outlay, low operating costs and quick payback, Zgounder ranks among the highest-return silver projects globally," Aya's president and CEO Benoit La Salle said.
The feasibility study showed a 394% increase in annual revenue from US$37 million in 2021 to US$172 million by 2024.
"While we see exceptional economics on the basis of reserves-based mining only, our long-term plan - incorporating a portion of the exploration upside and optimisation opportunities - positions Zgounder as a long-life cornerstone asset for Aya," La Salle said, adding that he believed there remained significant upside potential through exploration.
Zgounder - which is 15% owned by the Kingdom of Morocco - produced 433,742oz of silver in the fourth quarter of 2021, which was up 6% year-on-year. That took 2021 silver production to 1.6Moz, which exceeded guidance.
For 2022, Aya is expecting Zgounder to produce between 1.65Moz and 1.80Moz, with a silver cash cost of US$12/oz. Aya made its first silver pour at Zgounder in 2014.
Aya traded on the Toronto Stock Exchange at nearly a three-month high of C$10.11/share on February 22, which is up 4% day-on-day. The last time the stock closed higher than that was at C$10.15/share on November 30.
The company had a market capitalisation of C$1.06 billion.
