Soma Gold Corp. (TSX-V:SOMA, OTCQX:SMAGF)'s gold production for the first quarter of 2024 surged to 7,335 gold equivalent (AuEq) ounces, marking an 8% increase compared to the same period in 2023.
The Canada-based mining company disclosed that this uptick in production was accompanied by a strategic shift in the mining method at its 100% owned Cordero mine, aimed at optimizing gold output and slashing mining costs.
As Soma outlined in a release, the company previously used mechanized mining techniques, which resulted in excessive waste rock and dilution rates due to larger headings needed for equipment.
Shifting to the conventional raised stope method in 1Q slightly reduced production but is expected to lower costs and dilution rates, leading to higher head grade and increased production for the rest of the year.
Soma said it has already seen a reduction in mining costs and lower dilution rates.
"While the transition to the new mining method has presented some disruption, it is proving beneficial in terms of cost reduction and improving the mill head grade,” Soma CEO Geoff Hampson said in a statement.
Hampson told shareholders that the decision to change the mining method was made as a result of the team’s experience mining the deposit, and from an “extensive” definition drilling campaign last year.
“This data led to a better understanding of the geological model and nature of the deposit,” Hampson added.
“The management team believes that the deposit is now being mined under optimal methods. The combination of the improved costs and an improvement in head grade will result in higher quarterly production for the balance of the year."