Soma Gold Corp. (TSX-V:SOMA, OTCQX:SMAGF) said it has nearly reached its production target at the Cordero mine in Colombia despite anticipated delays.
The company announced it produced 27,460 ounces of gold equivalent (AuEq) and sold 27,668 AuEq ounces in 2024, reaching 92.4% of its budgeted production target for the year at the Cordero mine.
"We are pleased to have achieved 92.4% of our projected 2024 production at the Cordero Mine despite several unplanned mechanical shutdowns and a blockade by the local community, which negatively affected production,” Soma Gold CEO Geoff Hampson said in a statement.
“We expected the El Limon Mill to contribute ounces in 2024, but the restart was held up due to delays in the granting of the necessary permits to commence mining at the Aurora Mine in Machuca.”
The Vancouver-based gold producer is also in advanced discussions to acquire up to 200 tonnes per day (TPD) of mineralized rock from Denarius Metals Corp's Zancudo Mine in Colombia.
The material will be processed at Soma's El Limon Mill in Zaragoza, Antioquia, which is undergoing re-commissioning after being on care and maintenance since 2020.
The El Limon Mill, with a current capacity of 225 TPD and permits to expand to 400 TPD, is located approximately 125 kilometers from the Zancudo Mine. Soma expects the arrangement with Denarius to generate immediate production and cash flow once the mill is operational.
The company sees strong synergies with Denarius in maximizing mill utilization while ramping up its own production.
"There are a lot of synergies between Soma and Denarius that make sense for both companies to fully utilize El Limon's capacity while Soma ramps up production at the company's mines and Denarius commissions their new mill at Zancudo,” Hampson added.