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Soma Gold Announces Production Increase in Third Fiscal Quarter
Posted On November 12, 2021
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Soma Gold, a Canadian mining company focused on gold production and exploration in Colombia, has announced a 37% increase in Q3 production. According to Soma, gold production for the quarter ended September 30, 2021, was 5,289 ounces compared to 3,866 ounces in the quarter ended June 30, 2020. The increase in production was attributable to the feed from the newly opened Cordero Mine, supplementing the feed from the Mangos Mine and La Ye Mine.
In addition, the company announced that it is on schedule to retire the first-stage-obligations of the Off Take Agreement dated September 4, 2020 with Nueva Granada 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. The second stage of the obligations is based on 6% of the next 22,000 ounces produced. Soma said that the obligation will be met in the early part of Q4 of 2022.
The company also released that the construction of the Cordero mine will be completed in Q1 of 2022. Soma expects 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 $450,000 USD per month. During that time, Soma anticipates that gold production is will increase to an average of 2,500 ounces per month compared to the average of 1,516 ounces per month for 2021.
Quarterly Gold Production (CNW Group/Soma Gold Corp.)
“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,” said Javier Cordova, Soma’s President and CEO.
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