Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) said Tuesday it plans to update a key economic study for its flagship Cerro Caliche gold project in Mexico while also weighing a possible spinout of a second property into a new company.
The Toronto-listed miner intends to commission a revised Preliminary Economic Assessment, or PEA, for Cerro Caliche, an open-pit, heap-leach gold project in Sonora state.
A PEA is an early-stage economic analysis that outlines the potential costs and revenues of a mining operation. The current version, filed in August 2023, assumed a nine-year mine life producing 12,000 tonnes of ore a day at a gold price of US$1,800 per ounce.
The new study will incorporate a higher gold price and updated cost estimates. It will also include a revised mine plan that reflects adjustments Sonoro made to its environmental permit application earlier this year.
Those revisions were aimed at reducing the project’s footprint while meeting environmental and social requirements, the company said.
Sonoro holds all the necessary mineral concessions at Cerro Caliche and in July secured full surface rights through an agreement with the owner of the Cerro Prieto Ranch.
The company said its rights initially cover 3,908 hectares and will expand in 2028 to the entire 5,007-hectare ranch, including land around a neighbouring mine.
The updated PEA will draw on more than 55,000 metres of drilling as well as trenching and assays. So far, studies have covered about 30% of the mineralised zones, with extensive exploration still outstanding.
Management expects additional drilling to run alongside project development, with the aim of extending the mine life. The company anticipates completing the new PEA by the first quarter of 2026.
Separately, Sonoro said it is reviewing strategic options for its San Marcial gold-silver project, also in Sonora.
One possibility under consideration is spinning the asset into a wholly owned subsidiary, Oronos Gold, and distributing shares to Sonoro investors.
If pursued, shareholders would own stock in two separate companies: Sonoro, focused on advancing Cerro Caliche, and Oronos, tasked with exploring San Marcial.
San Marcial, acquired in 2014, covers historic mine sites and has shown signs of mineralisation in mapping and soil sampling. Management believes further drilling could confirm the project’s potential.
Sonoro said it expects to announce the outcome of its strategic review before the end of 2025.