Maya Gold & Silver’s Zgounder Silver Mine Sees Record Monthly Production in January

Maya Gold & Silver’s Zgounder Silver Mine Sees Record Monthly Production in January

By: Dylan Sikes - AllPennyStocks.com News

Tuesday, February 9, 2016

Risk assets continue to struggle amid concerns over the state of the global economy and low oil prices. Oil prices stabilized earlier today but a negative report from the International Energy Agency (IEA) once again pushed prices lower. The IEA noted in its report that oil demand will see a further slowdown in 2016. Meanwhile, the market remains oversupplied. Growth concerns also continue, especially in several emerging markets that were dependent on commodity exports.


Precious metals continue to benefit from the risk-off trade. Gold, which had been written off around this time last year, has seen a sharp recovery since the start of this year as investors look for safe haven assets. Silver, which usually tracks gold, has also seen a rebound this year. Year-to-date, the iShares Silver Trust (ETF) has seen gains of more than 11%. Silver is also benefiting from improving demand and supply fundamentals.

According to Citigroup analyst David Wilson, the next key resistance level for gold is $1,200 an ounce. However, Wilson cautioned that the precious metal is now in overbought territory.

The recovery in gold and silver prices since the start of this year is good news for miners, which have come under pressure in the last several years due to weak prices and outlook. This morning, Quebec-based Maya Gold & Silver Inc. (TSX-Venture:MYA) reported record production for the month of January.

MYA’s production for the month of January totaled 52,086 ounces at its Zgounder silver mine in Morocco. This is the second straight month of record production at Zgounder. On a month-over-month basis, the production at the mine increased 9% in January. In December, production at the mine totaled 47,676 ounces.

MYA also noted that it achieved a recovery rate of 83.26% in January, which represents an increase of 16% compared to the month of December.

Commenting on the record output, Noureddine Mokaddem, President of Maya Gold & Silver, said that the company has recently made significant improvements at the mill which has helped lift recovery rates. Mokaddem further said that for the second consecutive month, the company is pleased to report that it has been extracting ore and mineralized material from known panels at known grades. Mokaddem added that the company foresees that the mine will be able to sustain this increased level of production and output through this year.

MYA has been in a sustained downtrend since the summer of 2015, however has been able to halt the slide and maintain a support level at around $0.10 - $0.12 since mid-December. Should gold and silver continue their march higher, there’s a good chance that MYA will also start to see more buyers come in and bid the Company’s share price higher.

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