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When you lift the lid of the Moroccan tajine, the traditional cone-shaped cooking pot, the fragrance of rich

spices intoxicates your senses and you can’t wait to taste the hearty stew. Moroccan cui-sine is world renowned for mouth-watering dishes such as couscous, plump seminola grain heaped with vegetables, or bisteeya, that tasty savoury pastry.

A similar – and delectable – experience is now being in Morocco’s resource indus-try. Foreign companies have been invited to share the country’s rich treasure of min-erals. One junior Canadian company with a big appetite, Maya Gold and Silver Inc., [MYA-TSXV] is already at the table.

Casablanca is just a six-hour direct flight daily from New York or Montreal, or a quick connect to the capital markets of Europe. Maya’s CEO Guy Goulet, a Montreal-based businessman and geological engineer, has made the trip “40 or 50 times”. If you can catch up with him in person, (10K runner as well as global businessman), Goulet radi-ates high energy, a confident Québecois charm, and perpetual activity. He retains

the missionary enthusiasm of his youth-ful ambitions and was once described by a Québec newspaper as a “hurricane”. He was juggling five separate public companies at the time. Over the past 25 years, Goulet has raised approximately $80 million of capi-tal for various ventures ranging from gold in Peru to pioneering lithium in northern Québec in 1996. When the resource indus-try went south in 1999, Goulet went into water, co-founding H

2O Innovation, a water

technology company with revenue today of $35 million per year. He came back to min-ing in 2008. “Mineral exploration is like a drug,” he says. Today his sole business focus is Maya.

Maya Gold and Silver started with a small gold operation in Mexico, hence the name, but soon linked up with what Goulet describes as Maya’s greatest asset, a Moroccan citizen named Noureddine Mokaddem. Mokaddem is one of the most respected mine-builders in Morocco, and Goulet’s long-time friend. A professional engineer, he developed and managed some of the biggest state projects in Morocco

for over 25 years. In just one example of his leadership, he and his team built and put into production the giant Guemassa Mine with a CapEx of $1.2 billion in just 18 months. He is fluent in Arabic, French, English and a few other languages, highly organized and strategic, deeply connected and committed to advancing the industry – for Maya and for Morocco. He outlined to Goulet the scale of opportunities open-ing up in his country and became COO of Maya. Mokaddem brings the properties and Goulet brings the capital. Like steel and flint, it’s an effective combination.

The Atlas Mountains, rich in natural resources, form a spine down the back-bone of Morocco; from the northeast to southwest separating the Mediterranean and Atlantic coastlines from the Sahara Desert. On the edge of those mountains, red-walled Marrakesh (from the Berber word meaning Land of God) is the base camp for discovery. Just southeast of this romantic ancient capital, Maya has estab-lished first mover advantage with some highly prospective properties.

Maya Gold and Silver exploring Morocco by Patrick Moore

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Maya has not wasted a moment here in Morocco for the last three years, con-ducting due diligence on six properties proposed by Mokaddem and his team of local geologists. They have negotiated and acquired three so far, and have also submit-ted tenders to the government for others. Their latest – and largest by far, came just last month. In September 2011, Maya suc-cessfully won a bid for 85% of the highly prized Zgounder silver deposit, mine and mill. The project will be a joint venture with L’Office National des Hydrocarbures et des Mines, (ONHYM). ONHYM awarded the bid after examining a number of competitive international offers. “This con-firms the firm intention of Maya to focus on exploration and development in the Kingdom of Morocco,” said Mokaddem. ONHYM states the Zgounder Mine con-tains historical resources of 7.5 million ounces of silver (582,000 tonnes of ore at 361 grams silver/tonne) plus another 2.2 million ounces of silver in surface tailings (500,000 tonnes at 125 g/t), using a cut-off of 150 g/t. These figures are not NI 43-101 compliant, but they still indicate a sub-stantial value of metal in the ground. The mine was shut in 1990 due to low silver prices and has been properly maintained. The normally arid climate has helped keep the equipment in generally good condition. “We think this project is the most attrac-tive silver project available for a company our size”, declared Goulet. “Some smart people on our board say Zgounder could be our company maker.”

The overall budget allocated to the trans-action for the first 24 months is $20.5 million,

which includes initial cash payment, explo-ration, and infrastructure development in addition to mine and site rehabilitation. ONHYM will retain a 3% royalty on sales. The board will examine different corporate structures following the acquisition, which may include the spinoff of the new subsid-iary which would be jointly owned by Maya and its shareholders.

It was just over two years ago that Maya made their first acquisition in Morocco, the Amizmiz property. The permits cover an area of 80 km2, easily accessible by paved roads just 60 km south of Marrakech. Amizmiz has good access to power and water. Maya has invested $3.4 million here, extending the historic exploration works with airborne magnetic surveys and drill-ing. The exploration team has developed a total inferred resource of 342,094 ounces, (819,769 tonnes averaging 12.98 grams gold/tonne). The Amizmiz Project collectively hosts low-grade bulk-tonnage as well as high-grade, vein-type gold deposits, plus several other metals including copper, molybdenum, tungsten, zinc and lead. The geologic model is not yet clear, but consul-tants suggest that the gold mineralization could be genetically related to the Azegour metallogenic intrusion system that outcrops just 10 km directly south of Amizmiz.

Based on that theory, in March 2011 Maya purchased the Azegour Mine, plus its associ-ated 16-km mining permit. This acquisition strengthened Maya’s land position, setting up a “domain claim” which gives Maya the inside track on related claims in the vicinity. The past producing mine contains molyb-denum, copper and tungsten, but has never

been investigated for gold and silver. The next step will be to set up an operation at Azegour, producing ore from Amizmiz at a rate of 150 tonnes per day. This will provide Maya with cash flow as they continue to define the resource.

Maya’s third acquisition was the property which lies directly south of the Imiter Silver Mine, the largest silver mine in Africa and one of the 10 largest and richest silver mines in the world, producing more than 10 mil-lion ounces of silver per year for more than a decade. Maya’s deal conformed to the com-pany’s original acquisition objectives – it’s close to a major deposit and offers a variety of mineralization types.

The Kingdom of Morocco is a country of multi-ethnic groups with a rich culture and bright future. Through history, the indigenous Berber people and those who followed have traditionally offered a cup of mint tea, a delicious meal, and hospital-ity to foreigners from all directions, each of which have added spice to the complex flavour of the country. Maya is certainly making the most of their invitation and opportunity to develop the rich natural resources alongside the people of Morocco. A name change to reflect the company’s focus is inevitable, if not imminent. nFor more photos, go to: www.resourceworld.com/gallery

Patrick (Paddy) Moore is a senior multi-media journalist who specializes in the resource industry. He is a frequent contributor to Resource World Magazine and the Creative Director of BTV: Business Television. More about Moore at www.mooremedia.ca.

FAR LEFT: Guy Goulet, President/CEO of Maya Gold and Silver, at the entrance to an old adit at the Amizmiz Project.

MIDDLE: the Hassan II mosque in Casablanca, the second largest mosque in the world.

LEFT: Guy Goulet and Noureddine Mokaddem, COO, go over some geological reports. Photos by Patrick Moore.

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FIELD REPORT

Morocco is mystical and magical, an unfor-gettable tourist destination, but it is also emerging as a very contemporary country, where texting and Twitter are common-place – even in the souqs (markets) of the ancient medinas (quarters), and the mining industry is just being opened to foreign exploration and development.

Located on the northwestern shore of North Africa, Morocco has a population of more than 32 million people in an area slightly larger than Alberta, although about one-third of that land is the dis-puted territory of West Sahara. Politically, Morocco is regarded as an Arab state and sometimes as an African state. It is Africa’s most Europeanized country. Most people speak at least one of the two official lan-guages, Berber and Moroccan Arabic, plus French and increasingly English, the com-mon languages of commerce. The capital is Rabat, the largest city is Casablanca.

Unlike neighbouring countries of the region, Morocco has been relatively untouched by the Arab Spring uprisings this year. The country is a constitutional monarchy. The well loved King, Mohammed VI, holds vast executive powers, but an elected parliament governs the nation. The country has always been known for its Islamic liberalism and openness towards the western world. Today, the Moroccan wel-come rug is being extended to investment by foreign companies.

ECONOMIC REFORMS Since becoming King in 1999, Mohammed VI has ushered in an era of new politi-cal and economic reforms, including the privatization of certain economic sectors which used to be in the hands of the gov-ernment. The strategy is working. The Moroccan economy has steadily grown and become more diverse. Despite various global economic crises, Morocco’s gross

domestic product is increasing at nearly 5% average per year. Standard & Poor’s has consistently raised Morocco’s credit ratings citing a “track record in reducing the country’s fiscal and external debt bur-dens over the past decade [and] Morocco’s high political stability and the govern-ment’s momentum for its reform program, including large public works, which raised Morocco’s growth prospects.” The highly influential Financial Times news-paper ranks Morocco as the first African country of the future for investors in 2011-2012, moving up from third place ahead of South Africa and Egypt.

Inflation remains firmly under control, but unemployment, although improv-ing, remains high. The official rate fell in the first quarter of 2011 to 9.1%, down from 10% in the same quarter of 2010. Similarly, urban unemployment for people between the ages of 15 and 24 was down, an encouraging trend given that urban youth joblessness has been one of the most stubborn categories of unemployment and a major potential cause of unrest.

The government’s investment in infra-structure and developing industrial activities, including mining, has boosted Morocco’s exports. Free-trade agreements with many countries have helped stimulate international trade. To keep investment flowing, the government has devised a number of incentives including tax breaks and subsidies for industry.

MOROCCO AND CANADAIn October 2009, the Government of Canada embarked on a comprehensive consultation process to seek input and to help define the scope of a potential free trade initiative with Morocco. In parallel with these consultations, government offi-cials from both countries took part in two rounds of exploratory discussions in Rabat

and Ottawa. On January 27, 2011, Prime Minister Stephen Harper and the Prime Minister of Morocco, Abbas El Fassi, announced the two countries will begin negotiations towards a comprehensive free trade agreement. This will be Canada’s first such agreement with an African country.

NATURAL RESOURCES AND MININGNatural resource extraction is a pillar of the country’s economy, along with agriculture and tourism. The mineral sector has been responsible for about 7% of GDP, and in an effort to encourage growth, Morocco has privatized some holdings and is engaged in updating the legal framework.

Currently, the industry is dominated by big state mining companies while artisanal miners pick away at surface rocks. There is very little mid-sector exploration and/or development. Morocco produces 75% of the world’s supply of phosphate and is largest exporter in the world. The country is also known as a producer of industrial miner-als and base metals such as nickel, copper, zinc, lead, iron, cobalt, fluorine, barite, and anthracite. However, mining executives estimate that 90% of the country is under-explored by modern mining methods.

Mining is viewed as driver of economic growth bringing good, well-paying jobs, along with infrastructure development, knowledge and technology transfer, plus sustained royalty income. In order to encourage the exploration and development process and exploit their rich resources, the government revised the Mining Act in 1999 and established L’Office National des Hydrocarbures et des Mines, (ONHYM).

MEET THE MINISTER OF MINESMuch of the work to reform the Mining Act was done by Amina Benkhadra, Morocco’s highly qualified Minister of Energy, Mines, Water, and Environment. She was educated

Morocco – under explored with huge resource potentialThe country is welcoming international mineral explorers by Patrick Moore

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in Morocco, France, and the USA and holds an Advanced Degree in Civil Engineering (Mining) and a PhD in Engineering in Mineral Sciences. She was first appointed in 1998 by the late King Hassan II as Secretary of State for Mining, charged with setting up a new strategy for development of the sector. In 2008, her role was expanded by the new King to include the crucial energy and water portfolios. Morocco imports 95% of its energy needs and is developing an aggressive strategy to develop renewable and sustainable energy sources.

Minister Benkhadra understands the challenges and opportunities facing her country. In an interview last January she noted, “Morocco has a privileged geo-graphical position that situates it as a regional hub and allows it to play a key role in the area. We are inter-connected with Spain, Algeria, and we are work-ing on reinforcing the connection with Mauritania. Due to this geographical posi-tion, Morocco is ideal to partner with, especially in the energy sector, where the challenges are big and we have voluntary strategies with good and practical plans.”

Dr. Benkhadra will be a featured speaker at the MENA Mining Congress in late October in Dubai, UAE. MENA is the Middle East’s premier mining forum – “the regional meeting place for mining compa-nies, financial institutions, government, advisors and investors.” Minister Benkhadra will speak on why Morocco’s unique geol-ogy offers great mining opportunities and provide examples of successful collabora-tion and partnerships in mining projects in Morocco. n

Dr. Amina Benkhadra, Minister of Energy, Mines, Water and Environment for Morocco. Photo submitted.