Soma Gold Corp (CVE:SOMA) (OTCMKTS:SMAGF) has registered another positive quarter reporting that its 1Q revenue for 2021 reached $9.75 million.
The precious metals company also generated an EBITDA of $3.16 million and an adjusted EBITDA of $3.22 million over the same period.
The Colombia-focused junior owns two adjacent mining properties in Antioquia, Colombia with a combined milling capacity of 675 tons per day (tpd).
READ: Soma Gold achieves first-ever profits in 4Q and full year results following 2020 El Bagre mine acquisition
A project update for numerous sites and targets was also included in the first quarter statement.
At the El Barge project, favourable drill results from the Cordero deposit have expanded the mineralization zone 120 meters down-dip from the current resource, where vein continuity and high grade remains open at depth.
Soma's plans to continue an 8,200 metre drill program on the Cordero deposit ahead of a new NI 43-101 resource estimate planned for the end of 2021.
The resource will be accessed through two new portals currently under construction - the Fenix and Atena portals. Both are expected to be completed during Q3 2021, and production from Cordero is expected to reach 400 tpd by the year’s end.
The gold company said it also plans to file the necessary permits for the mine infrastructure build at the Nechi project in July of this year. The target date for production is 2Q 2022.
Lastly, drill results from the Estrella – Diamantina trend on the Zara concession, confirmed the vein extension model over two kilometres south of the El Limon mine.
"The Cordero deposit will commence production in the coming months as the construction phase of the two new access portals is completed. The average grade in the Cordero deposit appears to be 30% – 40% higher than what we have been mining at the Mangos and La Ye deposits, indicating that gold production will rise as the mill feed transitions to ore from Cordero later this year,” Javier Cordova, Soma's CEO said in a statement.
He continued: "The preliminary exploration being conducted in the southern part of the Company's Zara concessions, which have never been properly surveyed, mapped or explored, has provided very encouraging results. It appears that the mineralized trend that Soma is mining at La Ye, Mangos, Limon and soon at Cordero continues south along the Otu Valley. These preliminary results support the Company's theory that our properties contain a district-scale gold system with multi-million-ounce potential.”
Soma Gold also owns an exploration and development property near Tucuma, Brazil.
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