Aya Gold & Silver Inc. · TSX:AYA
Aya Gold & Silver — BMO Mining Conference 2022
38 slides from Aya Gold & Silver's conference presentation, March 2022
Slide 1: Building the Largest Pure-Play Silver Producer Globally
BUILDING THE LARGEST PURE-PLAY SILVER PRODUCER GLOBALLY
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT The mineral resource estimate for the Zgounder Silver Mine was prepared by Dr. Marc-Antoine Audet, Ph.D. P. Geo, who serves as the Qualified Person as defined by National Instrument 43- 101. Dr. Audet has also reviewed and approved the scientific and technical information i
Slide 3: Aya, Zgounder Silver Mine, Exploration, Catalysts
1 AYA 2 ZGOUNDER SILVER MINE 3 EXPLORATION 4 CATALYSTS
Slide 4: Aya Management
AYA MANAGEMENT Benoit La Salle, FCPA, CPA Mustapha Elouafi Ugo Landry-Tolszczuk Elias Elias President & CEO President-General Manager Chief Financial Officer Vice-President, Legal & Corporate Secretary Benoit has over 25 years of experience as a corporate executive in Mustapha is an established mini
Slide 5: Aya Board of Directors
AYA BOARD OF DIRECTORS Benoit La Salle, FCPA, CPA Robert Taub Dr. Elena Clarici Marc Nolet de Brauwere President & CEO, Director Chairman Director Director Benoit has over 25 years of experience as a corporate executive in Robert holds a BA Languages from the University of Antwerp, Bel- Elena is a m
Slide 6: Zgounder Silver Mine – Cornerstone of Aya's Growth Story
ZGOUNDER SILVER MINE – CORNERSTONE OF AYA’s GROWTH STORY ▪ Commercial production in 2019 ▪ 2022 production guidance of ~1.7M oz ▪ 2024 production of ~7.9M oz, +394% ▪ 96M oz M&I resources at 306 g/t Ag DEVELOPMENT UPSIDE ▪ Boumadine ▪ Tijirit – FS in Q2-2022 EXPLORATION UPSIDE ▪ Zgounder Regional ▪
Slide 7: Aya – The Only TSX-Listed Pure Silver Producer
AYA – THE ONLY TSX-LISTED PURE SILVER PRODUCER 100% 80% 60% 40% 20% 0% Silver Gold Other Source: Desjardins Capital Markets, company reports *Developer, for which 2021 metal prices and latest technical report LOM payable production were used 7
Slide 8: Aya – Pathway to Becoming Largest Pure-Play Silver Producer
AYA – PATHWAY TO BECOMING LARGEST PURE-PLAY SILVER PRODUCER GLOBALLY SOLID FUTURE MILESTONES FOUNDATION VALUE DRIVERS ACHIEVED ▪ Turnaround of Zgounder Mine operations ▪ Expansion FS delivered production of 7.4M oz ▪ Expansion of Zgounder Mine production to Ag from 2024-2031 at LOM AISC of $9.58/oz
Slide 9: Quadrupling Production at Industry-Low Cash Cost
ZGOUNDER – QUADRUPLING PRODUCTION AT INDUSTRY-LOW CASH COST Production (oz Ag) 7,942,552 $14.00 7,500,000 $13.46 $13.50 7,000,000 6,500,000 Average production cost ($/oz) $13.00 6,000,000 $12.50 5,500,000 $11.28 $12.00 5,000,000 $12.00 4,500,000 $11.38 4,000,000 $11.50 3,500,000 $11.00 3,000,000 2,5
Slide 10: Morocco – Developing the Mining Sector Beyond Phosphates
MOROCCO – DEVELOPING THE MINING SECTOR BEYOND PHOSPHATES 36.6M Arabic, Amazigh & 710,850 km² inhabitants French-speaking 1920 1951 1951 - 1995 1995 - 1998 2016 2022 1914 First mining legislation First modern Revision of Mainly Moroccan Privatization of 114 Revision of 45 ONHYM projects mines mining
Slide 11: Aya – Corporate Snapshot – TSX: AYA
AYA – CORPORATE SNAPSHOT – TSX: AYA Shares - Basic 103.9M Shares – F.D. 115.7M Share Price (Feb. 22, 2022) C$ $10.11 Market Cap C$ $1B Cash (Sept. 30, 2021) US$ $88M Debt (Sept. 30, 2021) US$ Nil 30-day average volume ‘000 0.3 Shareholders 15% USA 55 % Insiders 25 % 50% EUROPE Institutional 20 % Ret
Slide 12: Zgounder Silver Mine
1 AYA 2 ZGOUNDER SILVER MINE 3 EXPLORATION 4 CATALYSTS
Slide 13: Aya / Zgounder Timeline
AYA / ZGOUNDER TIMELINE New management appointed Zgounder Millennium Operational turnaround Maya Gold & Silver Mining (ZMSM) Zgounder Imiter bis, announced Silver Inc. Inc created updated NI incorporated Amizmiz, Azegour 43-101 & +2,000 tpd ExpansionFS in Canada projects acquired Boumadine acquired
Slide 14: Zgounder – Top Silver Intercepts Globally
ZGOUNDER – TOP SILVER INTERCEPTS Top 50 global primary silver intercepts 2020 and 2021 YTD, ranked by Ag grade-thickness GLOBALLY Elizabeth Hill, 1 80,762 Filo del Sol, 2 77,683 Breccia, 3 65,930 KSK, 4 53,875 Zgounder, 5 43,819 Zgounder, 6 41,841 Zgounder hit 3 out of the top 10 and 15 out of the t
Slide 15: Zgounder – Top Silver Intercepts
ZGOUNDER – TOP SILVER INTERCEPTS Zgounder top 50 all-time drill intercepts, ranked by Ag grade-thickness 1 3,043g/t over 14.4m 2 6,437g/t over 6.5m 3 9,346g/t over 4.0m 4 4,944g/t over 7.2m 5 2,376g/t over 13.2m The 2020/ 2021 drill exploration program returned 41 of the 6 7 2,417g/t over 12.0m 1,49
Slide 16: Zgounder – 2022 Mineral Reserves
ZGOUNDER – 2022 MINERAL RESERVES Maiden Silver Reserve On a 100% basis. M&I resources shown inclusive TONNES (K) AG (G/T) CONTENT ▪ The maiden reserve includes drilling carried out between January and of reserves. ¹ ² (AG K OZ) September 2021 PROVEN RESERVES 2,100 28,748 288 ▪ Reserves include 29% o
Slide 17: Zgounder – Expansion Feasibility Study Highlights
ZGOUNDER – EXPANSION FEASIBILITY STUDY HIGHLIGHTS LOM Production Profile 10,000,000 350 71Moz $373M 9,000,000 Total Ag oz produced P&P reserves Post-tax NAV (5%;$22/oz) Ag grade processed 300 8,000,000 7,000,000 250 Ag grade (g/t) $9.58 $139.4M 6,000,000 200 AISC (LOM) Growth capex Ag oz 5,000,000 1
Slide 18: Expanded operations will combine flotation-CIP and flotation-cyanidation plants
Expanded operations will combine ▪ 2,000 tpd flotation-CIP plant & ▪ 700 tpd flotation-cyanidation plant ▪ Open-pit & UG operations
Slide 19: Flotation Building
FLOTATION BUILDING! ee ely a — — CIP CIRCUIT | eee ae
Slide 20: Industry-Low LOM AISC
ZGOUNDER – INDUSTRY-LOW LOM AISC Silver Assets Viewed by AISC (US$/oz), LOM (years) and Production (Koz AgEq.) $26 Bolañitos Size Based on Production (Koz AgEq.) $24 La $22 Encantada Julcani Guanacevi All-In Sustaining Cost (US$/oz Ag) $20 Galena Complex San Morococha Lucky $18 Vicente Friday Pallan
Slide 21: Zgounder – Strong Post Expansion Cash Flow Generation
ZGOUDNER – STRONG POST EXPANSION CASH FLOW GENERATION 250,000 600,000,000 Total Revenues After-Tax Cash flow Cumulative After-Tax Cash flow (undiscounted) 500,000,000 200,000 400,000,000 150,000 Total revenue (k$) 300,000,000 100,000 200,000,000 50,000 100,000,000 0 2022 2023 2024 2025 2026 2027 202
Slide 22: Zgounder – Strong Post-Expansion Economics
ZGOUNDER – STRONG POST-EXPANSION ECONOMICS $19 oz Ag BASE CASE SPOT $16 oz Ag $28 oz Ag $36 oz Ag $22 oz Ag ($23.5 oz Ag) AFTER-TAX 5% NPV ($M) $132M $253M $373M $433M $612M $927M AFTER-TAX IRR (%) 21% 34% 48% 54% 75% 117% UNDISCOUNTED LOM FREE $213M $368M $522M $599M $828M $1,232M CASH FLOW ($M) PA
Slide 23: Zgounder – Expansion Capex Breakdown
ZGOUNDER – EXPANSION CAPEX BREAKDOWN INITIAL CAPEX SUSTAINING ($MM) CAPEX Power line OP stripping ($MM) Infrastructures & TSF 5% 2% PROCESSING PLANT 60.8 7.3 5% UG equipment & infrastructure INFRASTRUCTURES & TSF 6.6 12.2 Processing 6% NEW POWER LINE 7.6 plant 44% MINING – OPEN PIT PRE-STRIPPING 2.9
Slide 24: Zgounder – Expansion Timetable
ZGOUNDER – EXPANSION TIMETABLE 2022 2023 2024 % completed Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 100% Feasibility study Front-end engineering design 35% Long-lead equipment order 0% Earth & civil works 0% EPC offer 0% Detailed Design 0% Construction 0% Commissioning 0% First silver pour 0% Production r
Slide 25: Zgounder – Impact and ESG-Driven Mine Expansion
ZGOUNDER – IMPACT AND ESG-DRIVEN MINE EXPANSION Reduce carbon emissions intensity ▪ Power Zgounder with 100% renewable energy ▪ Lower fuel consumption through the production of Ag bars ▪ Evaluate a clean energy fleet-replacement strategy for end-of-service trucks Lower water consumption ▪ Partnershi
Slide 26: Exploration
1 AYA 2 ZGOUNDER SILVER MINE 3 EXPLORATION 4 CATALYSTS
Slide 27: Aya – Initial 72,500 Meter Drill Exploration Program
AK AYA – INITIAL 72,500 METER DRILL EXPLORATION PROGRAM GROWTH PIPELINE INCLUDES 4 POTENTIAL PROJECTS ZGOUNDER SILVER MINE ▪ 30,000m 2022 budget, of which 7,500m regionally ▪ Add near-mine oz and identify Zgounder Regional oz IMITER BIS (Exploration) ▪ 10,000m 2022 budget ▪ Test drill priority targe
Slide 28: Aya – Strong Resources Growth at Industry-Low Discovery Cost
AYA – STRONG RESOURCES GROWTH AT INDUSTRY-LOW DISCOVERY COST 120 ▪ Total cost per M&I Ag oz discovered 860% Increase in M&I Resources of $0.10 oz positions us at bottom of first quartile of precious metals companies 100 6.4 ▪ Based on 2021 Zgounder exploration budget of $8.9M M&I Resources 80 Inferr
Slide 29: Zgounder – Potential to Expand and Optimise Further
ZGOUNDER – POTENTIAL TO EXPAND AND OPTIMISE FURTHER
Slide 30: Zgounder – 22,500m Near-Mine Drill Program
ZGOUNDER – 22,500M NEAR-MINE DRILL PROGRAM M&I Mineral Resources with 2022 Initial Surface and Underground Drill Holes TSX | AYA 30
Slide 31: Zgounder – Regional Drill Exploration Program
ZGOUNDER – REGIONAL DRILL EXPLORATION PROGRAM Inaugural drill program scheduled for 2022 ▪ 7,500m of RC and DDH will be completed on Zgounder Regional in Q2-2022 ▪ Follow-up of airborne geophysics and mapping programs (see left) ▪ 13 permits totalling 175km² ▪ 2020 surface geological investigation o
Slide 32: Zgounder – Regional Hyperspectral Imaging
ZGOUNDER – REGIONAL HYPERSPECTRAL IMAGING Hyperspectral Imagery– WorldView 3 ▪ Strong spectral signal within existing permits and surrounding regional play ▪ Identification of targets within our permits and opportunities outside our permits ▪ High resolution images, with 0.31m spatial and 3.7m spect
Slide 33: Imiter bis – Drill Exploration Program
IMITER BIS – DRILL EXPLORATION PROGRAM (Au, Ag, Cu, Pb, Zn) Imiter bis Project - 100% owned ▪ At-surface polymetallic structure extending >4km located on Morocco’s sub- Atlas range, 5 km south of the world-class Imiter Silver Mine ▪ June-Sept. 2021 – Mapping, grab sampling and channel sampling ▪ Pot
Slide 34: Boumadine – Metallurgical Work
BOUMADINE – METALLURGICAL WORK (Au, Ag, Zn, Pb, Ge) Grab Sample Locations with Au Locations in ppm Mined from ~1950s-1991 as both OP and UG mines ▪ Historical UG production: 261,485t @ 3.8% Zn, 1.5% Pb, 200 g/t Ag & 3.50 g/t Au ▪ Historical resource estimated in 1998 (non-NI 43-101 compliant) ▪ Grab
Slide 35: Tijirit – Feasibility Study Advancing
TIJIRIT – FEASIBILITY STUDY ADVANCING (Au) Tijirit Gold Project in Mauritania - 75% owner-operator ▪ A high-grade gold project in pro-mining jurisdiction with a 26- year mine permit covering 150 km² ▪ FS focused on Eleonore deposit is 50% complete ▪ 1,000 tpd base case; expandable to 2,000 tpd ▪ 25,
Slide 36: Catalysts
1 AYA 2 ZGOUNDER SILVER MINE 3 EXPLORATION 4 CATALYSTS 36
Slide 37: Potential Catalysts for 2022
POTENTIAL CATALYSTS FOR 2022 ▪ Continue exploration drilling on Zgounder with the aim of increasing Ag resources ▪ Deliver 2022 milestones for 2,700 tpd Expansion FS ▪ Complete initial 72,500m drill exploration program on priority properties ▪ Achieve 1.65M-1.8M oz Ag production and $12/oz cost guid
Slide 38: Contact
1320 Graham, suite 132 Ville Mont-Royal, QC H3P 3C8 Benoit La Salle : +1-514-951- 4411 Alex Ball : +1-647-919-2227 www.ayagoldsilver.com | info@ayagoldsilver.com TSX | AYA