Soma Gold Corp (TSX-V:SOMA) said 2022 gold production at its 100%-owned El Bagre operation in Colombia rose by 30% from the previous year, setting a new annual production record for the mine, which was first established in 2011.
The company said it produced 23,115 gold equivalent (Au Eq) ounces in 2022, up from 18,000 ounces the previous year. Meanwhile, 22,952 ounces were sold in 2022.
Production in 2022 achieved 98% of the forecast for the year despite three weeks lost to an unplanned two-week general strike in September.
READ: Soma Gold adds more ounces as it progresses with El Bagre and Nechí Projects, develops Cordero Mine in Colombia
In a statement Javier Cordova, Soma's president and CEO noted that the company achieved the goals set out in its 2022 plan.
“We have barely touched the large number of exploration targets on our extensive property in one of the most prolific gold belts in Colombia. We fully expect to be able to add more ounces to the resource on an annual basis than we mine.
"We will continue to add value to our shareholders by increasing production capabilities in sync with the expansion of the resource. The plan includes the generation of substantial free cash flow to further enhance shareholder value," he added.
The company said the NI 43-101 Indicated and Inferred Mineral Resources in Antioquia, including both the Cordero Mine and Nechí Project, have increased by 10% and 174% respectively since December 31, 2018. That represents an increase of 230,000 ounces when taking into account the 80,000 ounces produced since the 2018 report was published.
Soma also said that the construction phase at the Cordero Mine is substantially complete, and the company has declared commercial production as of January 1, 2023.
Soma's mine plan and production forecast for 2023 anticipates a further 50% increase in annual production to 35,500 Au Eq ounces with a further 24% increase to over 44,000 ounces per year in 2024 and 2025.
No external funding will be required to achieve this production, it added.
Soma said it has now produced the required number of ounces needed to pay off the second tranche of its US$5 million Gold Loan from Nueva Granada. The only remaining obligation will be a 1% net smelter return tail for the life of the Cordero Mine.
In 2023, exploration drilling at Cordero will be conducted both from the surface and underground to extend the Cordero deposit at depth and on strike.
Underground development work at Cordero has also revealed additional veins that were previously unknown and not accounted for in the company's recent Resource Estimate, the company added.
Soma Gold focuses on gold production and exploration. It owns two adjacent mining properties in Antioquia, Colombia with a combined milling capacity of 675 tons per day (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 jon.hopkins@proactiveinvestors.com