Soma Gold Corp. (TSX-V:SOMA) has announced the completion of an updated independent Mineral Resource Estimate (MRE) for its El Bagre and Nechí Projects and a positive Preliminary Economic Assessment (PEA) for the development of the Cordero Mine in Antioquia, Colombia.
The company explained that the El Bagre Complex consists of three underground mines, two of which - Le Ye and Los Mangos - will be mined out shortly, and Cordero, which is currently under development.
"We are very pleased with the results of our first updated resource since we acquired the El Bagre Gold Mining Complex and the Nechi Project in 2020,” Soma CEO Javier Cordova said in a statement. “Total contained ounces in all categories at Cordero has increased significantly from the previously reported resource, and we anticipate adding additional ounces with future drill programs."
READ: Soma Gold sees second highest quarterly gold sales in 3Q
Cordova said Soma Gold’s development program at the Cordero Mine is well advanced with Cordero supplying the vast majority of the mineralized material for the company's El Bagre Mill from 2023 onwards as the company’s two legacy and lower-grade mines are phased out.
“As production at Cordero ramps up to planned levels of 680 tpd (tons per day), it will also allow us to restart our currently idle El Limon mill,” he added. “The results of the PEA support the attractive economics of our mining operations.”
- Mineral Resource Estimate Highlights:
- Total inclusive Indicated and Inferred Mineral Resources at the company's Cordero Mine increased significantly by 18% and 1,093% respectively, since December 31, 2018.
- Cordero Mine PEA Highlights:
- Using base-case metal price of US$1,700 per ounce of gold and a C$/US$ exchange rate of 0.75, the project has a pre-tax NPV of $94.6million, and an after-tax NPV of $55.9 million, both using an 8% discount rate.
- Average annual gold production over the life of mine is estimated at 44,376 ounces per year from 2023 to 2025.
Soma Gold said production at Cordero is scheduled to ramp up to 680 tons per day in 2024, which will allow it to restart its previously operating El Limon mill.
The company said there is good potential to increase the Mineral Resource and extend the mine life at the Cordero Mine as the deposit is open on strike and at depth.
Soma Gold is a mining company focused on gold production and exploration. The company owns two adjacent mining properties in Antioquia, Colombia with a combined milling capacity of 675 tpd - permitted for 1,400 tpd. The El Bagre Mill is currently operating and producing. Internally generated funds are being used to finance a regional exploration program.
The company also owns an exploration property near Tucuma, Para State, Brazil that is currently under option to Ero Copper Corp.
Contact the author at stephen.gunnion@proactiveinvestors.com