Aya Gold & Silver: Expansion Around Zgounder
Aya Gold & Silver is precisely such a strategic project. To further expand its presence in the region, the company has acquired a new copper-silver portfolio in Morocco. The purchase price amounts to just CAD 4 million, payable entirely in shares. The newly secured area covers a total of 139 km², of which 19 km² are covered by an existing mining licence.
The location of the new areas is strategically advantageous, as they are situated only about 35 km west of the already-producing Zgounder mine and exhibit comparable geological characteristics. Historical data and recent samples indicate promising deposits with grades of up to 837 g/t of silver and a copper content of 4.6%. To determine the actual size and precise potential of this area, the company will carry out a comprehensive exploration program over the next 12 to 18 months.
The company also achieved growth in its operations during the second quarter. Production volume rose by 61% year-on-year to 1.68 million ounces of silver equivalent. Consequently, revenue rose by 151% to USD 97 million. Net profit rose by 305% to USD 35 million, while operating cash flow reached USD 48 million. In addition, stripping costs at the Zgounder mine were reduced by 17% to USD 17.69 per ounce.
Despite this strong growth, the company fell short of market expectations. Earnings per share of USD 0.23 were below the forecast of USD 0.3855, and the targeted revenue of USD 121 million was also not achieved. The company attributed these variances to sales delays, which were recognized only in July, as well as to a decline in silver prices towards the end of the quarter. However, the company is maintaining its full-year production forecast of 6.2 to 6.8 million ounces of silver equivalent.
Lahontan Gold: The Next Catalysts Are In Place
At Lahontan Gold, the case for a re-rating is growing stronger. In mid-August, the gold developer increased the mineral resource at its historic Santa Fe mine in Nevada by 22%, or 435,000 ounces. The mine now has 1.195 million ounces of gold equivalent in the “indicated” category and 1.190 million ounces in the “inferred” category, totalling 2.385 million ounces. The main Santa Fe deposit increased by 26%, whilst the near-surface oxide resources at Slab and York grew by more than 37%. These in particular could be processed relatively cost-effectively using heap leaching.
Attention is now turning to the upcoming revised preliminary economic assessment (PEA). The 2024 PEA had already calculated a post-tax net present value of USD 200 million and an internal rate of return of 34.2% based on a gold price of just USD 1,950. The new study is based on a significantly larger resource base. At the same time, as a former mine, Santa Fe benefits from existing infrastructure. Between 1988 and 1995, 359,202 ounces of gold and 702,067 ounces of silver were already produced here.
The historic tailings provide further cause for optimism. Last week, Lahontan reported further strong results. Nine drill holes on a tailings pile previously classified as low-grade averaged 1.96 g/t gold equivalent. A standout result was 10.7 m grading 1.81 g/t gold and 64.8 g/t silver. The material that has already been mined could be processed at a significantly lower cost than fresh rock, thereby further improving profitability.
And the growth continues. For West Santa Fe, Lahontan is aiming to produce an initial resource estimate by the end of the year. The company envisages an exploration target of 0.5 to 1.0 million ounces of oxidized gold and silver mineralization at the site. With a larger resource, an updated PEA, additional tailings ounces and the planned start of construction in 2027, there are several potential catalysts for the share price. If this is successfully implemented, the transition from a developer to a producer could trigger a further revaluation.
Contango Silver & Gold: Exceptional Grades
Precious metals specialist Contango Silver & Gold has also made progress in this year’s drill program in Alaska. As part of the Lucky Shot project, rock samples were collected that show high gold concentrations. For instance, a core drill hole yielded a 2.45 m interval with a gold grade of 86.05 g/t. In the majority of the drill holes examined, the precious metal was visible directly in the rock without the need for technical aids. The company has so far drilled 5,700 m of the planned 6,000 m. In parallel with surface work, underground development is taking place. During this work, the miners encountered two previously unrecorded vein structures. Analyses of the material removed from these areas revealed gold grades of up to 395.10 g/t. The company will incorporate the newly discovered zones into its future project planning.
With regard to its financial performance in the second quarter of 2026, the company fell significantly short of market expectations. Earnings per share amounted to USD 0.14, while a forecast of USD 0.655 had been given beforehand. Despite this shortfall, the share price recorded a slight rise, which is primarily attributable to the company’s overall financial position and its future outlook.
The company has cash and cash equivalents of USD 89 million, offset by outstanding loan repayments of USD 2 million for the current year. In the Man-Choh joint venture, in which the company holds a 30% stake, its share of gold produced amounted to 8,900 ounces. The average selling price was USD 4,328 per ounce.
Production is expected to rise to over 41,000 ounces in the second half of the year. At the same time, production costs are set to fall from USD 2,665 to between USD 1,900 and USD 2,000 per ounce, as ore with a higher gold content is now being mined. Provided precious metal prices remain high, Contango expects joint venture revenue to exceed USD 60 million for the full year.
High gold and silver prices are currently presenting mining companies with exceptional opportunities. Aya Gold & Silver is combining rising production at Zgounder with the expansion of its portfolio, thereby unlocking further growth. At Lahontan Gold, the resource, which has risen to 2.385 million ounces, the revised PEA and the potential of the historic tailings provide significant upside potential. Contango Silver & Gold, for its part, impresses with extremely high gold grades and expects production to rise in the second half of the year, alongside a significant reduction in costs. If precious metal prices remain high, all three shares offer further upside potential.
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