Resource World Magazine

O C T O B E R / N O V E M B E R 2 0 1 8 www.resourceworld.com 45 LEFT: Andrew Tims, Project Manager, exploring the Thundercloud gold project in northern Ontario. Photo courtesy Dynasty Gold Corp. to better understand the extent and nature of the mineralization. Positive results are expected to be followed by more drilling. In the Pelham Zone, at least three drill holes are planned to extend the historic mineralization by testing for its projected northeast plunge and to test for a potential footwall gold zone paral - lel to the main Pelham Zone Recent review of geophysical data also indicated that there are untested induced polarization and geochemi- cal anomalies over other parts of the property. The fall-winter program may also follow up some of these potential targets. Under the option agreement with Teck Resources, Dynasty has the right to earn a 100% interest in the 2,250-hect - are Thundercloud property by spending $6 million on exploration over five years and issuing 1,000,000 shares to Teck. Teck retains a back-in right to earn back to a 65% interest in the property by spending $15 million over four years. Dynasty Gold also owns a 100% interest in the Golden Repeat gold prospect near the town of Midas in the Carlin Trend of Nevada as well as a 70% interest in the Qi-2 operating mine in the Tien Shan gold belt in Xinjiang province, China. Dynasty Gold has been await - ing the court decision regarding its litigation against its partner Xinjiang Non-Ferrous Industrial Group Ltd., a Chinese state-owned company, for its US $12 million investment in the Qi-2 Mine. The mine has been in produc - tion for several years but Dynasty has not received any proceeds for its 70% interest. As of September 24, 2018 Dynasty Gold has 19,975,975 shares issued and outstanding. n Moroccan silver mine producing; exploration advancing MAYA GOLD & SILVER INC. [MYA-TSX] reported an increase in silver produc- tion in Q2 2018 compared to Q2 2017 at its 85%-owned Zgounder underground mine located in the Anit-Atlas Mountains, 265 km east of Agadir City in central Morocco. The National Office of Hydrocarbons and Mines of the Kingdom of Morocco holds the remaining 15% interest. "Despite the severe weather conditions and the unprecedented snowfall we experienced in Q1, we were able to forge ahead in Q2, increasing silver production 188% over the same period in 2017, positioning us to improve on the production for the year," said Noureddine Mokaddem, President and CEO. For the three months ended June 30 2018, Maya produced 92,216 ounces of sil - ver (31,942 oz in Q2 2017). The company has been aggressively paying down its debt and spending cash on development and exploration that resulted in a net loss of $2,839,825 for Q2 2018, an increase of 387% from $582,638 for the same quarter of 2017. Consequently, Maya reported a 72% lower net debt of $3.1 million as of June 30, 2018, compared with $11.2 million as at December 31, 2017 following the prepayment of the EBRD (European Bank for Reconstruction and Development) debt. Revenue from silver in the six-month period ended June 30, 2018, totaled $4,127,841 ($6,470,653 in the same period last year). Development costs incurred during the period, excluding capitalized interest, amounted to $5,418,643 ($5,064,831 in the same period last year). Maya has been taking steps to improve on the production for the year. "Our team has also been diligently working away at the Zgounder flotation cells project, which remains on track to be delivered before the end of Q3 2018," said Mokaddem. Plans call for milling to increase to 500 tonnes per day (tpd) in 2018, until 2020, followed by a 2,000 tpd production rate in 2021. Production will increase to 1.354 million ounces of silver/year up to 4.762 million ounces of silver/year. Total operat - ing costs averaged over the expected mine's life are forecast to be US $63.64/tonne. The May 2014 Pre-Feasibility Study indicated an Internal Rate of Return of 134% pre-tax and 118% after tax. After-tax Net Present Value is US $200.2 million (discounted at 6.5%) at variable silver prices from US $17.50 to US $21.50/oz with an average of US $20.5/oz. Current resources will last until 2027. Lodging is on site with 10 housing units for engineers, geologists and managers and 56 units for miners and their families. For Q2 2018, working capital was $27,313,785, compared with a working capital of $3,135,362 for the same period in 2017. Maya plans to complete a 6,000-metre drilling program at Zgounder and com - plete a Preliminary Economic Assessment for its Boumadine polymetallic property in Q4. On June 26, 2018, the company reported intersecting 28 metres of 4.91 g/t gold, 140 g/t silver, 0.18% copper, 0.41% lead and 1.7% zinc at a shallow depth of 153 metres, including 6 metres of 11.02 g/t gold, 219 g/t silver, 0.39% copper, 0.12% lead and 0.55% zinc at 175 metres at the Boumadine property. Maya Gold & Silver has four other exploration projects in Morocco. n

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