Soma Gold Corp. has officially revealed the company’s Financial Statements and MD&A for the Three and Six Months Ended June 30, 2024. Talk about these results on a slightly deeper level, we begin from the fact that, for the given period, Soma produced 6,590 AuEq ounces in Q2-2024 and 13,925 AuEq ounces in the six months ended June 30, 2024,, as compared to 15,693 AuEq ounces in H1-2023. Next up, we must acknowledge how Cordero Operations reported attributable cash costs per ounce of gold sold worth US$1,263, a report which came alongside data informing us on its income from mining operations i.e. $10 million. Moving on, the technical report in question further informed the reader on Soma completing a major maintenance shutdown of the El Bagre Mill in the second quarter, including the rebuild of the ball mill. More on this mill would reveal how it was shut down for eight days in June, significantly impacting the ounces produced during the month. Beyond that, the company’s shift to a conventional mining focus has resulted in a higher proportion of development costs being expensed rather than capitalized, with approximately $1.1 million less capitalized in Q2-2024 compared to the average of previous three quarters. Having referred to the work it has already done, we now must go ahead and dig into Soma’s plans for the remainder of 2024. These plans include continuing exploration of the expanded property package along the Otu fault to increase resources and identify the next mine on the company’s Antioquia properties. The company further plans to expand and commence mining in the high-grade zone of Upper Cordero. Not just that, Soma will simultaneously complete the restoration, cleaning and permitting of its Machuca mine, where production is set to begin at the start of Q4.
“The transition to conventional mining methods continued in Q2, while the company was mining zones with lower-than-historical average grade and containing a series of faults and dykes, increasing mining costs per ounce. This transition is largely complete, and we anticipate mining higher-grade zones in Upper Cordero (as detailed in the Soma News Release dated July 16, 2023) to commence by the end of Q3. For the balance of 2024 and into 2025, we expect the combination of higher grades, reduced development and waste rock and an increase in the number of stopes,” said Geoff Hampson, Soma’s President and CEO.
There is also an intention on Soma’s part to finalize the plan and permit application for the Nechi mine to increase feed for the el Limon and El Bagre mills. Mining operations at Nechi are expected to commence by 2026. Joining the same is its idea to continue advancing the formalization process for small miners working on the company’s concessions, aiming to increase total ounces produced by 10%. Among other things, Soma will also try and evaluate more of those strategic integrations into the company’s concession package. Here, it will markedly focus on trends identified through the exploration program. Finally, our last piece of highlights is rooted in the company’s plan to commence the drilling program using newly acquired underground drill. This it will do to confirm the extension of the Cordero deposit at depth, thus significantly increasing the resource and Life of Mine.
Founded in 2012, Soma Gold is best known for conducting a brand of mining which is focused on gold production and exploration. At present, the company owns two adjacent mining properties with a combined milling capacity of 675 tpd.
“Our exploration team has made significant progress in advancing several high-priority exploration targets near the Machuca Mine. The results of mapping, soil sampling, stream sediment analysis and channel sampling inside several of the small mines along the trend indicate the potential for a larger and higher-grade deposit. Drilling on these targets will begin in Q4. We are optimistic that these discoveries can potentially lead to an increase in mineable resources, enhancing the feed for our two mills and possibly justifying the fully permitted mill expansion,” said Hampson.
