SOMA GOLD PROVIDES A CORPORATE UPDATE AND GUIDANCE FOR 2023 Record Gold Production of 23,115 ounces in 2022
SOMA GOLD PROVIDES A CORPORATE
UPDATE AND GUIDANCE FOR 2023
Record Gold Production of 23,115 ounces in 2022
VANCOUVER, BC
,
Jan. 11, 2023
/CNW/ - Soma Gold Corp. (TSXV: SOMA) (WKN: A2P4DU)
(OTC: SMAGF) (the "Company" or "Soma") is pleased to announce that 2022 gold production at its
100% owned El Bagre,
Colombia
, operation was 23,115 ounces, a 30% increase from the previous
year and that 22,952 ounces were sold during the year. The Company further provides a Corporate
Update and announces that it has finalized its 3-year mine plan and annual planned gold production
for 2023 – 2025 for the Cordero Mine.
The Update is as follows:
Soma produced 23,115 Au Eq ounces in 2022. This is up from 18,000 ounces produced in 2021
and represents a new record for annual production since the mine was first established in 2011.
The 2022 production achieved 98% of the 2022 forecast despite three weeks of lost production
as a result of the unplanned two-week General Strike in September.
The NI 43-101 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
. That represents an increase of 230,000 ounces when taking into account the 80,000
ounces produced since the 2018 Report was published.
Soma also announces that the construction phase at the Cordero Mine is substantially
complete, and the Company has declared commercial production as of
January 1, 2023
.
The NI 43-101 PEA by the Company's consultants, SLR, indicated a pre-tax NPV of
$95 million
,
an increase of almost
$90 million
from the 2018 PEA.
Soma's mine plan and production forecast for 2023 anticipates a further 50% increase in annual
production to 35,500 AuEq ounces with a further 24% increase to over 44,000 ounces per year
in 2024 and 2025. No external funding will be required to achieve this production.
Soma has now produced the required number of ounces needed to pay off the 2
nd
tranche of its
US$5 million
Gold Loan from
Nueva Granada
. The only remaining obligation will be a 1% NSR
tail for the life of the Cordero Mine.
2023 exploration drilling at Cordero will be conducted both from the surface and underground to
extend the Cordero deposit at depth and on strike.
Underground development work at Cordero has also revealed additional veins that were
previously unknown and not accounted for in the Company's recent Resource Estimate. Further
exploration on the southern portion of the Company's 29,000 Ha will also be conducted with a
combination of DDH drilling, stream sediment analysis, soil sampling and air-borne geophysics.
The Company is now self-performing, mining and sustaining development work with the newly
purchased fleet of Sandvik underground equipment.
In 2023, the mining method at Cordero will include "Cut and Fill" in appropriate areas while
maintaining the "Raised Stope" methods in others. This method is expected to both increase the
number of tons mined and reduce the cost per ton.
Operadora has been awarded the "Sello de Sostenibilidad" award by the State of Antioquia for
the second year in a row. This award is given to companies that exceed the environmental
guidelines and requirements of the state.
Javier Cordova, Soma's President and CEO, states, "We are very pleased and gratified that our
team in
Colombia
has achieved the goals set out in our 2022 plan. This includes the completion of
the construction of the Cordero Mine, which is critical to our future, the hiring and training of a new
management team, the transition to self-performed mechanical mining and the expansion of the total
Indicated and Inferred Resources to 404,000 ounces. The geological and exploration team has done
a very good job of improving our understanding of the structural controls and geometries of the
deposit, which allows us to better refine the drilling and mining plans. We have barely touched the
large number of exploration targets on our extensive property in one of the most prolific gold belts in
Colombia
. We fully expect to be able to add more ounces to the resource on an annual basis than
we mine." Mr. Cordova further states, "We will continue to add value to our shareholders by
increasing production capabilities in sync with the expansion of the resource. The plan includes the
generation of substantial free cash flow to further enhance shareholder value."
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.
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 11-JAN-23