Resource World Magazine

42 www.resourceworld.com o c t o b e r / n o v e m b e r 2 0 1 4 MINING Maya Gold & Silver pours first silver ingot in Morocco by Patrick Moore On August 28, 2014 Maya Gold & Silver Inc. [MYA- TSXV] announced its first silver pour at the Zgounder Silver Mine located about 260 km east of the major port city of Agadir, Morocco. Zgounder Millenium Silver Mining (ZMSM) produced and will sell nearly 7,500 ounces of silver (234.5 kilos) with a current value of $140,000. The 20 ingots, grading between 90-97% Ag, were poured at the mine during the ramp-up period. The pouring is the result of 17 days of operation with mineralized material from "ancient stockpiles" on hand. About 2,800 tonnes were processed averaging 105.5 g/t Ag. The mill recovery rate achieved 86%. Based in Blainville, Québec, Maya Gold & Silver has numerous advanced projects with near-term revenue potential and a pipe- line of exploration projects in Morocco. The primary project, Zgounder, is a past producer, yielding 655,000 ounces of silver between 1982 and 1990. Maya owns 85% of Zgounder in a joint venture with l'Office National des Hydrocarbures et des Mines (ONHYM) of the Kingdom of Morocco which holds 15%. ONHYM states the Zgounder Mine contains historical resources of 7.5 million ounces of silver (582,000 tonnes of 361 g/t Ag) plus another 2.2 million ounces of silver in surface tailings (500,000 tonnes at 125 g/t Ag), using a cut-off of 150 g/t Ag. These figures are not NI 43-101 compliant, but still indicate a substantial value. The mine was shut in 1990 due to low silver prices and has been properly maintained. The normally arid climate has helped keep the equipment in generally good condition. Commenting on this major milestone, Maya CEO, Guy Goulet stated, "We are extremely pleased to achieve our first silver pour following site and mill rehabilitation that started in September 2013. This is a significant achievement for Maya and is a direct result of the outstanding efforts from all stakeholders led by our President, Noureddine Mokaddem, with the sup- port of the local residents and thanks to the assistance of the relevant departments of the Moroccan Government. Commissioning has gone smoothly and ZMSM is well on track to achieve commercial production in a near future." Maya has an excellent team in Morocco with extensive exploration and operations expertise and enjoys "first mover" advantage in Morocco's newly privatized mining industry. Maya President, Noureddine Mokaddem, is one of the most respected mine-builders in Morocco. A profes- sional engineer, he developed and managed some of the biggest state projects in Morocco for over 25 years. Morocco has always been known for its Islamic liberalism and openness towards the western world. To keep invest- ment flowing, the government has devised a number of incentives including tax breaks and subsidies for industry. Natural resource extraction is a pillar of the country's economy (along with agriculture and tourism). The mineral sector has been responsible for about 7% of GDP, and in an effort to encourage growth, Morocco has privatized some holdings and is engaged in updating the legal framework. Mining is viewed as driver of economic growth bringing quality paying jobs; along with infrastructure development, knowledge and technology transfer, plus sustained royalty income. In order to encourage the explo- ration and development process and exploit their rich resources, the government revised the Mining Act in 1999 and established ONHYM. Morocco produces 75% of the world's supply of phosphate and is world's largest exporter of phosphate. The country is also known as a producer of industrial minerals and base metals such as nickel, copper, zinc, lead, iron, cobalt, fluorine, barite, and anthracite; professionals estimate that 90% of the country is underexplored by modern mining methods. Currently the industry is dominated by big state mining com- panies while artisanal miners pick away at surface rocks. There is very little mid-sector exploration and/or development. On January 27, 2011, Prime Minister Stephen Harper and then Prime Minister of Morocco, Abbas El Fassi, announced the two countries would begin negotiations towards a comprehensive free trade agreement. The first round of negotiations took place in October 2011, followed by a second round in March 2012 and a third in June 2012. Good progress has been made so far on all aspects of the negotiations. This will be Canada's first such agree- ment with an African country. n Patrick (Paddy) Moore is a multi-media journalist who special- izes in the resource industry. He is a frequent contributor to Resource World Magazine, Editor of Canadian Investor Magazine, and Creative Director of BTV: Business Television on BNN. Twitter @ mooremedia_ca The Zgounder Silver Mine in Morocco. Photo courtesy Maya Gold & Silver Inc.

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