Soma Gold Announces 37% Increase in Q3 Production The average head grade mined to date at the Cordero Mine was approximately 9.0 gpt
Soma Gold Announces 37% Increase in Q3
Production
The average head grade mined to date at the Cordero Mine was approximately 9.0 gpt
VANCOUVER, BC
,
Oct. 6, 2021
/CNW/ -
Soma Gold Corp.
(TSXV: SOMA) (WKN: A2P4DU)
(OTCQB: SMAGF) (the "
Company
" or "
Soma
") is pleased to announce that gold production for the
Quarter ended
September 30, 2021
, was 5,289 ounces compared to 3,866 ounces in the Quarter
ended
June 30, 2021
. The increase in production was attributable to the feed from the newly opened
Cordero Mine, supplementing the feed from the Mangos and La Ye Mines. The average grade of the
material mined at Level 2 of the Cordero Mine has been approximately 9.0 gpt (grams per ton)
versus the average grade of Mangos and La Ye of 4.5 gpt.
Next Steps:
Development work continues underground, and mining of mineralized rock from the stopes is
expected to begin in November.
Construction work accessing Level 3 is on-going and expected to be completed in October with two
additional faces opening in November and December. Development work on the ramp to levels 4 and
5 is expected to be completed in Q1 of 2022. Once the construction phase is completed, the
Cordero Mine is expected to produce 600 TPD at an average head grade of 6.5 gpt. Over the next
several months as mining accelerates, gold production will increase to 7,500 ounces per Quarter.
Quarterly Gold Production (CNW Group/Soma Gold Corp.)
In addition, the Company announces that it is on schedule to retire the first-stage-obligations of the
Off Take Agreement dated
September 4, 2020
with Nueva Grenada Gold Corp and MVPR
International Corporation, . The agreement contemplated stage 1 deliveries until
December 2022
.
Gold to be delivered under stage 1 of the Agreement is 12% of the first 24,500 ounces produced.
That milestone will be reached in
December 2021
. The second stage of the obligations is based on
6% of the next 22,000 ounces produced. That obligation will be met in the early part of Q4 of 2022.
The Company also announces that the construction of the Cordero mine will be completed in Q1 of
2022. This capital expenditure has been financed with internally generated funds at the cost of
approximately US
$295,000
per month.
The completion of the construction and the moving to stage 2 of the deliveries under the Off Take
Agreement will increase monthly cash flow by approximately US
$450,000
per month. During that
time, gold production will increase to an average of 2,500 ounces per month compared to the
average of 1,516 ounces per month for 2021.
Javier Cordova
, Soma's President and CEO, states, "We are pleased to be coming to the end of the
construction of the Cordero mine resulting in a dramatic increase in feed of mineralized rock from
330 TPD to over 600 TPD by early 2022. This increase in feed material will allow Soma to restart
the el Limon mill, increasing throughput to 600 TPD and increasing gold production from 1,500
ounces per month to 2,500 ounces per month for 2022. The resulting improvement in cash flow and
operating profit will be significant for the Company. Our team on the ground in
Colombia
has done an
excellent job of managing the project."
ABOUT SOMA GOLD
Soma Gold Corp. (TSXV: SOMA, OTCQB: SMAGF, WKN: A2P4DU) is a mining company focused
on gold production and exploration. The Company owns two adjacent mining properties in Antioquia,
Colombia
with a combined milling capacity of 675 TBD (permitted for 1,400 TBD). The El Bagre Mill
is currently operating and producing. Internally generated funds are being used to finance a regional
exploration program.
The Company also owns an exploration and development property near Tucuma, Para State,
Brazil
.
On behalf of the Board of Directors
"Javier Cordova Unda"
Chief Executive Officer and President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
All statements, analysis and other information contained in this press release about anticipated
future events or results constitute forward-looking statements. Forward-looking statements are
often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan",
"estimate", "expect" and "intend" and statements that an event or result "may", "will", "should",
"could" or "might" occur or be achieved and other similar expressions. Forward-looking statements
are subject to business and economic risks and uncertainties and other factors that could cause
actual results of operations to differ materially from those contained in the forward-looking
statements. Forward-looking statements are based on estimates and opinions of management at the
date the statements are made. The Company does not undertake any obligation to update forward-
looking statements even if circumstances or management's estimates or opinions should change
except as required by applicable laws. Investors should not place undue reliance on forward-looking
statements.
SOURCE
Soma Gold Corp.
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For further information:
please contact Andrea Laird, telephone: +1-604-259-0302
CO: Soma Gold Corp.
CNW 06:15e 06-OCT-21