Soma Gold Corp (CVE:SOMA) (OTCMKTS:PRSRF) has reported encouraging drill assays from its Cordero-Balvina mine project in Colombia, which shows potential for even stronger economics at the mine where production is expected this June or July.
The company has now completed the next phase of infill drilling at the deposit and highlights include 3.70 metres (m) of 2.37 grams per ton (g/t) gold, including 0.70m of 7.23 g/t gold.
READ: Soma Gold says January gold production at its Operadora subsidiary exceeded plan by 22.2% at 1,663 ounces
"It is gratifying to see that the system we will be mining appears to continue on strike to the North and down-dip," said Javier Cordova, Soma's president and CEO in a statement.
"The gold grades and the vein thickness continue to indicate the potential for even stronger economics than we have been experiencing. We are eager to begin mining operations at Cordero-Balvina in the near term. A higher head grade will translate into higher monthly gold production numbers."
On Wednesday, Soma said the Fenix Portal, which will give it access to the Cordero-Balvina deposit, was approximately 35% of the way to reaching the ore body at Level 3. The first phase of the decline totals 890 meters. The decline will then continue for an additional 610 meters to provide access to lower mine levels.
The average grade in Cordero-Balvina is 6.2 g/t versus the 3.6 g/t the company has been mining at its Los Mangos and La Ye deposits.
Soma Gold owns two adjacent mining properties in Antioquia, Colombia with a combined milling capacity of 675 tons per day (tpd) and permitted for 1,400 tpd. The La Ye mine is currently operating and producing, and the El Limon mine and mill are scheduled to begin operating in Q1, 2021. Internally generated funds will be used to finance a regional exploration program.
The company has planned and will fund from operating income, 20,000m of drilling for its advanced exploration projects: Cordero-Balvina, Deep Limon and Alacrán-Dimantina and its conceptual and greenfield projects Limoncito and Cañon de Rojas.
In addition, a regional exploration program will include mapping and sampling of small miner workings previously identified in mining concessions.
The company says there is "significant potential" for high-gold-grade discoveries in this essentially unexplored yet highly mineralized region where the company has consolidated more than 25,000 hectares of mining concessions.
Shares advanced over 5% to C$0.40 each in Toronto.
---Updates for share price---
Contact the author at giles@proactiveinvestors.com