Aya Gold & Silver's Boumadine PEA: A Catalyst for Tier-1 Status in the Gold-Silver Sector

In the evolving landscape of the global gold-silver sector, Aya Gold & Silver Inc. has emerged as a standout player, with its Boumadine Polymetallic Project in Morocco serving as the cornerstone of its strategic ascent. The recent filing of a Preliminary Economic Assessment (PEA) for Boumadine not only underscores the project's robust economic potential but also positions Aya as a compelling candidate for Tier-1 status. This analysis delves into the technical and operational progress highlighted by the PEA, evaluates its alignment with industry benchmarks, and examines how these metrics solidify Aya's investment attractiveness.

Boumadine's Economic Viability: A Tier-1 Blueprint

The Boumadine PEA, prepared in accordance with National Instrument 43-101 standards, presents a project with an 11-year mine life and a capital-efficient structure. With an initial capital expenditure (CAPEX) of $446 million-including a $96 million contingency-the project's post-tax net present value (NPV5%) of $1.5 billion at base-case prices and $3.0 billion at spot prices reflects exceptional financial resilience. These figures translate to a NPV to CAPEX ratio of 3.3:1 and 6.6:1, respectively, outperforming many industry peers according to Aya's latest filing.

The internal rate of return (IRR) further amplifies Boumadine's appeal, with 47% at base-case prices and a staggering 77% at spot prices. Such returns are rare in the sector, particularly for projects with a 2.1-year payback period at base-case prices and 1.2 years at spot prices according to Aya's PEA. These metrics align with, and in many cases exceed, industry benchmarks. For instance, the Lawyers-Ranch Project by Thesis Gold reports a 35.2% IRR and 2.0-year payback, while Integra Resources' DeLamar project achieves a 46% IRR and 1.8-year payback according to Aya's latest update. Boumadine's superior performance is driven by its high-grade ore, low all-in sustaining costs (AISC) of $1,021 per ounce of gold-equivalent (AuEq), and a streamlined operational model

according to Aya's technical report.

Operational Efficiency and Resource Strength

Aya's competitive edge is further bolstered by Boumadine's resource base and operational efficiency. The project is projected to produce 401,000 ounces of AuEq annually in the first five years, with 328,000 ounces over the mine life. On a silver-equivalent (AgEq) basis, this equates to 37.5 million ounces in the first five years and 30.6 million ounces over the mine life according to Aya's PEA. These outputs are supported by record-breaking mineral intercepts, such as the 2,323 g/t AgEq over 15.0 meters, which highlight the project's high-grade potential and resource continuity according to Aya's latest announcement.

The low CAPEX and AISC figures position Boumadine favorably on the global cost curve, a critical factor in an industry where margin pressures often dictate long-term viability. Aya's ability to balance scale with cost efficiency-while maintaining a district-scale polymetallic asset-distinguishes it from smaller, higher-cost producers. This operational discipline, combined with the project's already secured permits, sets the stage for a feasibility study slated for late 2027 according to Aya's official timeline.

Strategic Positioning in the Gold-Silver Sector

Aya's strategic positioning is further reinforced by its alignment with broader industry trends. As demand for gold and silver remains resilient-driven by macroeconomic uncertainties and industrial applications-projects with rapid payback periods and high IRRs are increasingly attractive to investors. Boumadine's metrics not only meet these criteria but also offer a buffer against commodity price volatility, a persistent risk in the sector.

Moreover, Aya's focus on polymetallic production diversifies its revenue streams, reducing exposure to single-commodity price swings. This approach mirrors the strategies of established Tier-1 producers, who prioritize projects with multi-metal synergies to enhance profitability. The Boumadine PEA's emphasis on capital efficiency and operational scalability further aligns with the sector's shift toward projects that deliver both near-term cash flow and long-term growth according to Aya's latest report.

Conclusion: Aya's Path to Tier-1 Recognition

The Boumadine PEA represents more than a technical milestone for Aya Gold & Silver-it is a strategic inflection point. By demonstrating a project with world-class financial metrics, low costs, and high-grade resources, Aya has positioned itself as a serious contender in the gold-silver sector. The upcoming feasibility study will be critical in validating these projections, but the PEA's robustness already signals a project capable of delivering shareholder value across multiple commodity cycles.

For investors seeking exposure to a company with Tier-1 potential, Aya's Boumadine project offers a compelling case. Its combination of economic strength, operational efficiency, and strategic foresight makes it a standout in a sector where such attributes are increasingly rare.