SOMA GOLD Provides a Corporate Update
SOMA GOLD PROVIDES A CORPORATE
UPDATE
Highlights:
Q1 AuEq production of 6,643 ounces, in line with budgeted ounces of 6,636.
Soma made a payment of
$2.5 million
on the Conex Loan.
Rehabilitation of the El Limon Mill is on schedule, under budget, and expected to be
operational by mid-June.
Formalization of small miners on Soma's property continues, with two mines preparing
to transport material to the El Limon Mill once rehabilitation is complete.
Soma, in partnership with other local companies, has been approved for a tax program
that allows income tax due to the Colombian Government to be spent directly on capital
programs benefiting the local community.
VANCOUVER, BC
,
April 17, 2025
/CNW/ -
Soma Gold Corp.
(TSXV: SOMA) (WKN: A2P4DU)
(OTC: SMAGF) (the "
Company
" or "
Soma
") is pleased to provide a corporate update on several
initiatives currently underway.
During the first quarter of 2025, Soma mined a total of 75,093 MT, of which 52% (38,
855 MT
) was
ore and 48% (36,
238 MT
) was waste material, producing 6,643 AuEq ounces for the period. The
average price per ounce of Au achieved during the quarter was USD
$2,848
per ounce compared to
USD
$2,033
in Q1 2024. The average grade was lower than in the previous period due to
development work to access higher-grade stopes in the Upper Cordero and Lower Venus areas,
which resulted in increased dilution. Gold production is expected to be higher in H2 as the average
grade increases and El Limon begins production.
Rehabilitation of the El Limon Mill is progressing, with completion expected in June. The updated
budget is
C$980,000
(including contingency), which is 30% below the original
C$1.4 million
budget –
largely due to increased in-house work performed by Soma's team. El
Limon Mill
feed will come
from excess production at Cordero, the production-ready Aurora Mine, and ore from two formalized
small miners on the Soma's property. Initial production is anticipated to be 100 TPD, ramping up to
200 TPD.
The formalization of small miners continues to advance, with the Diamentina and Lemoncito Norte
mines currently progressing through the process. A total of 28 formalization contracts are under
review. If all contracts are approved, Soma could receive between 600-1,000 TPD. Ore delivered by
formalized small miners tends to be higher grade, as these miners are more selective in the material
they ship and can work in areas with narrow veins with less dilution.
When the Cordero Mine was permitted, Soma negotiated a benefits agreement with the local
community that, among other programs, included paving the main road through the village. This
project is being financed by Soma and several other regional companies, including Mineros S.A.,
who is acting as project manager. It was recently approved under a Colombian Government
program that allows companies to pay for approved community projects in lieu of income tax
payments. This enables Soma to meet its community commitments using funds that would otherwise
have been paid in tax. The total cost of the 2.8 km road pavement is
COP 15.34 billion
(
C$5.1
million
), with Soma contributing
COP 5.5 billion
(
C$1.8 million
).
In
March 2025
, Soma made a
C$2.5 million
principal repayment on the Conex loan. Repayment
terms of the loan call for a balloon payment due on
July 31, 2030
, and accrues interest at 12%
annually. There are no penalties for partial or full early repayment. The higher-than-anticipated gold
price enabled the Company to make this payment. Soma's goal is to reduce debt as quickly as
possible while maintaining sufficient cash reserves to fund its accelerated exploration program to
expand the Company's total resource. An updated NI 43-101 Resource Estimate is planned for early
2026.
Geoff Hampson
, Soma's President and CEO, states, "Management is very pleased with the
progress we have made on our properties in
Colombia
. We are looking forward to working through
the relatively low-grade areas we are currently mining and accessing the higher-grade zones in
Upper Cordero and the Venus Gap (as detailed in Soma's press releases dated
July 16, 2023
, and
November 12, 2024
). The Company is tracking to plan and will soon benefit from added production
at the rehabilitated El Limon Mill. We are actively exploring several promising prospects using soil
sampling, geophysics and DDH drilling – and early results are encouraging. In addition, we are
acquiring additional adjacent properties where mineralized trends have been identified. The strong
gold price has allowed Soma to build cash reserves in excess of operational, exploration, and capex
needs, and we are applying the surplus to reduce debt on an accelerated basis. We are on track for
a strong 2025 and beyond."
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.
With a solid commitment to sustainability and community engagement, Soma Gold Corp. is
dedicated to achieving excellence in all aspects of its operations.
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
"Geoff Hampson"
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:
For further information, please contact Andrea Laird, telephone: +1-604-
259-0302
CO: Soma Gold Corp.
CNW 05:20e 17-APR-25