SOMA GOLD Announces a Positive Preliminary Economic Assessment and Updated Mineral Resource FOR Its Colombian Projects
SOMA GOLD ANNOUNCES A POSITIVE
PRELIMINARY ECONOMIC ASSESSMENT
AND UPDATED MINERAL RESOURCE FOR
ITS COLOMBIAN PROJECTS
VANCOUVER, BC
,
Jan. 5, 2023
/CNW/ -
Soma Gold Corp.
(TSXV: SOMA) (WKN: A2P4DU)
(OTC: SMAGF) (the "
Company
" or "
Soma
") is pleased to announce the completion of an updated
independent Mineral Resource Estimate for the Company's El Bagre and Nechí Projects and a
positive Preliminary Economic Assessment (PEA) for the development of the Cordero Mine, in
Antioquia,
Colombia
. All values are in Canadian dollars (CAD$) unless otherwise noted. El Bagre
Complex consists of three underground mines, two of which,
Le Ye
and Los Mangos, will be mined
out shortly, and Cordero, which is currently under development.
Mineral Resource Highlights:
Total inclusive Indicated and Inferred Mineral Resources at the Company's Cordero Mine
increased significantly by 18% and 1,093% respectively, since
December 31, 2018
. The 2022
Mineral Resource estimate for Cordero is as follow:
Category
Tonnage
(000t)
Grade
(g/t Au)
Contained Metal
(000 oz Au)
Indicated
355
6.9
78
Inferred
761
7.9
192
Notes:
1
.
CIM (2014) definitions were followed for Mineral Resources.
2
.
Mineral Resources are estimated at a cut-off grade of 2.40 g/t Au.
3
.
Mineral Resources are estimated using a long-term gold price of
US$1,800
per ounce for
Cordero
4
.
Mineral Resources are reported within underground reporting shapes (DSO shapes)
5
.
A minimum mining width of
1.0 m
was used.
6
.
Bulk density is 2.0 t/m
3
for saprolite and ranges between 2.64 t/m
3
and 2.99 t/m
3
for fresh
rock.
7
.
Numbers may not add due to rounding.
Total inclusive Indicated and Inferred Mineral Resources in Antioquia, including both the Cordero
Mine and Nechí Project, increased by 10% and 174% respectively, since
December 31, 2018
.
A detailed summary of the updated Mineral Resources for Cordero and Nechí is as follows:
Category
Tonnage
(kt)
Grade
(g/t Au)
Contained Metal
(koz Au)
Indicated
Cordero
355
6.9
78
Nechí
310
4.9
49
Indicated Total
665
5.9
127
Inferred
Cordero
761
7.9
192
Nechí
405
6.5
85
Inferred Total
1,165
7.4
277
Notes:
1
.
CIM (2014) definitions were followed for Mineral Resources.
2
.
Mineral Resources are estimated at a cut-off grade of 2.40 g/t Au for Cordero and 3.1 g/t Au
for Nechí.
3
.
Mineral Resources are estimated using a long-term gold price of
US$1,800
per ounce for
Cordero and
US$1,500
per ounce for Nechí.
4
.
At Cordero, Mineral Resources are reported within underground reporting shapes (DSO
shapes)
5
.
A minimum mining width of
1 m
for Cordero and
1.3 m
for Nechi was used.
6
.
Bulk density is 2.0 t/m
3
for saprolite and ranges between 2.64 t/m
3
and 2.99 t/m
3
for fresh
rock.
7
.
Numbers may not add due to rounding.
Cordero Mine PEA Highlights:
Robust project economics:
Using base-case metal price of
US$1,700
per ounce of gold and a CAD/US$ exchange rate
of 0.75, the project has a pre-tax NPV of
$94.6million
, and an after-tax NPV of
$55.9
million
, both using an 8% discount rate.
Average annual gold production over life of mine is estimated at 44,376 ounces per year
from 2023 to 2025.
The economic analysis in this PEA is based, in part, on Inferred Resources, and is preliminary in
nature. Inferred Resources are considered too geologically speculative to have the economic
considerations applied to them that would enable them to be categorized as Mineral Reserves.
There is no certainty that economic forecasts, on which this Preliminary Economic Assessment
is based, will be realized.
Production at Cordero is scheduled to ramp up to 680 tpd in 2024, which will allow the
Company to restart its previously operating El Limon mill.
There is good potential to increase the Mineral Resource and extend the mine life at the
Cordero Mine as the deposit is open on strike and at depth.
"We are very pleased with the results of our first updated resource since we acquired the El Bagre
Gold Mining Complex (including the Cordero Mine) and the Nechi Project in 2020. Total contained
ounces in all categories at Cordero has increased significantly from the previously reported
resource, and we anticipate adding additional ounces with future drill programs." states
Javier
Cordova
, Soma's CEO.
"Our development program at the Cordero Mine is well advanced with Cordero supplying the vast
majority of the mineralized material for the Company's El Bagre Mill from 2023 onwards as our two
legacy and lower-grade mines are phased out. As production at Cordero ramps up to planned levels
of 680 tpd, it will also allow us to restart our currently idle El Limon mill. The results of the PEA
support the attractive economics of our mining operations."
The full Technical Report containing the updated Mineral Resource and PEA will be filed on SEDAR
at
www.sedar.com
and Soma's website within 45 days of the issuance of this news release. The
independent Technical Report was prepared by SLR Consulting (
Canada
) Ltd. and has an effective
date of
December 31, 2022
.
Mr.
Chris Buchanan
, P.Geo, is Soma's Vice-President of Exploration and a Qualified Person as
defined by National Instrument 43-101. Mr. Buchanan has reviewed the technical information
disclosed in this press release. The Mineral Resource estimate was prepared by
Sean Horan
,
P.Geo, and
Marie-Christine Gosselin
, P.Geo, both SLR employees and Independent Qualified
Persons as defined by NI43-101. The independent QPs have reviewed and approved the contents of
this news release that relates to the mineral resource estimate disclosure in the NI 43-101 technical
report.
ABOUT SOMA GOLD
Soma Gold Corp. (TSXV: SOMA) 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 tpd. (permitted for 1,400 tpd). 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 property near Tucuma, Para State,
Brazil
that is currently
under option to Ero Copper Corp.
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 07:15e 05-JAN-23