Aya Gold and Silver | Benoit La Salle and Jimmy Connor

Key Concepts

• Gundere: Primary asset, an open pit and underground silver mine currently exceeding nameplate capacity.
• Bumadine: Second asset, historical mine with significant silver and gold in stockpiled residues currently being processed.
• All-in Sustaining Cost (AISC): Total cost of production per ounce of silver, a key metric for profitability.
• Nameplate Capacity: The designed maximum output of a processing plant.
• Stockpiling: Accumulating ore for future processing, often due to temporary imbalances between mining and processing rates.
• Dilution: The inclusion of waste rock within mined ore, impacting grade.
• Resource & Reserve: Resource is the total estimated amount of metal in the ground, while reserve is the economically mineable portion.
• Block Model: A 3D computer model representing the geological characteristics of a deposit.
• Silver Equivalent Ounces (Ag Eq Oz): A standardized measure of silver production, converting other metals (like gold) into equivalent silver ounces based on their market value.

Production & Optimization at Gundere

In 2025, A Gold and Silver achieved record production of 5 million silver equivalent ounces, largely driven by the Gundere mine. The company completed the ramp-up of a new processing plant, now operating at 3,700 tonnes per day – 30% above its nameplate capacity of 2,700 tonnes per day. Gundere produced 4.88 million ounces in 2025, with projections for 5.8 million ounces in 2026. Key performance indicators (KPIs) are strong: 96% plant availability, 92% plant recovery, and a mine throughput of 4,500 tonnes per day, leading to stockpiling of ore.

A critical aspect of Gundere’s operation is adapting mining methods based on silver prices. When high-grade pockets (e.g., 100 grams per tonne) are encountered, they are extracted even if it temporarily lowers the average grade, as the profitability justifies it. The deposit is described as a “loaf of bread” – 200 meters wide, 700 meters deep, and 1.4 kilometers long – rather than a traditional silver vein. This means encountering varying grades and requiring flexible mining strategies. The all-in cost at Gundere is projected to be $19 per ounce, providing a substantial margin at current silver prices (around $90).

Optimization programs for 2026 include a $36 million capital expenditure (CAPEX) allocation. $24 million will be used to extend the ramp down to the granite structure at the bottom of the deposit, where high-grade silver (1-3 meters of very high grade) is anticipated. The remaining $12 million will fund plant expansion, aiming to increase processing capacity from 3,700 to 4,000-4,200 tonnes per day to handle increased tonnage and lower-grade material currently stockpiled.

Stockpiling & Grade Management

Currently, approximately 500,000 tonnes of lower-grade material (40-80 grams per tonne) are stockpiled, representing material expensed but retained on site. Regular ore processed ranges from 100-160 grams per tonne, with run-of-mine ore averaging 150-160 grams per tonne. The company is strategically mining lower-grade material due to favorable silver prices, intending to process it with the expanded plant capacity.

Exploration Programs – Gundere & Sagund

A $30 million exploration program is planned for 2026: $20 million for near-mine exploration at Gundere and $10 million for regional exploration. The near-mine program focuses on identifying repetitions of the Gundere deposit, leveraging geophysical data and artificial intelligence (AI) analysis to identify 14 potential targets. The regional program explores the broader district, utilizing AI and geological mapping to identify new structures and anomalies.

Updated Technical Report – Gundere

An updated technical report, incorporating three years of drilling data (2022-2025) and the new plant capacity, has established an 11-year mine life based on 2% of the property. Average annual production is projected at 6 million ounces of silver, reaching 6.2-6.4 million ounces in later years. The cash cost is $16.25 per ounce, with an AISC of $19 per ounce. The mine plan utilizes 70% open-pit mining and is focused on reaching the granite structure at the deposit’s base.

Bumadine – Historical Residues & Future Potential

The Bumadine asset involves processing 240,000 tonnes of historical residues containing 180 grams of silver and 2 grams of gold per tonne. The company is shipping approximately 10,000 tonnes per month for 24 months, generating $3-4 million in monthly profit. This process also serves to debug logistics and establish relationships with smelters for future concentrate shipments. Current production from Bumadine is contributing approximately 78,000 silver equivalent ounces.

A resource update for Bumadine is expected in June, with the potential to significantly increase the current 450 million ounces of silver equivalent. A 200,000-meter drilling program is underway, with 180,000 meters focused on updating the resource model and 20,000 meters dedicated to regional exploration. The company has identified a gold discovery within the Bumadine land package (800 square kilometers). The offtaker is willing to pay a premium for the Bumadine concentrate due to its pyrite, gold, and silver content.

Silver Market Outlook

The speaker emphasized the importance of a strong treasury ($100 million+) and disciplined sales practices in navigating silver price volatility. The company avoids pre-selling or hedging, preferring to capitalize on spot market prices. They employ a tiered sales strategy, offering silver at progressively higher prices to capture maximum value. The speaker believes silver supply will decrease while demand continues to grow, driven by industrial applications (armament, solar panels, communication equipment) and investment demand. They anticipate a “bumpy” ride but remain optimistic about the long-term outlook for silver, particularly with the company’s strong cost structure and asset base.

2026 Guidance & News Flow

The company’s guidance for 2026 is 5.8 million ounces of silver from Gundere and 1 million +/- 10% ounces from Bumadine, totaling 6.8-7 million silver equivalent ounces. Investors can expect news flow including drill results from both Gundere and Bumadine, Q4 and year-end financial results (end of March), Q1 production results (April), and the NASDAQ listing (Q2). Updates on the Bumadine development and potential land acquisitions are also anticipated.

Conclusion

A Gold and Silver is well-positioned for growth, with a strong production base at Gundere, a profitable stockpile operation at Bumadine, and a robust exploration pipeline. The company’s disciplined financial management, strategic optimization programs, and favorable cost structure are expected to drive significant value creation in the coming years. The focus on expanding production capacity, updating resource estimates, and exploring new targets demonstrates a commitment to long-term sustainability and growth.