- Total inclusive Indicated and Inferred Mineral Resources at the
Company's Cordero Mine increased significantly by 18% and 1,093% respectively, sinceDecember 31, 2018 . The 2022 Mineral Resource estimate for Cordero is as follow:
Category | Tonnage | Grade | Contained Metal |
Indicated | 355 | 6.9 | 78 |
Inferred | 761 | 7.9 | 192 |
Notes:
- CIM (2014) definitions were followed for Mineral Resources.
- Mineral Resources are estimated at a cut-off grade of 2.40 g/t Au.
- Mineral Resources are estimated using a long-term gold price of
US$1,800 per ounce for Cordero - Mineral Resources are reported within underground reporting shapes (DSO shapes)
- A minimum mining width of 1.0 m was used.
- Bulk density is 2.0 t/m3 for saprolite and ranges between 2.64 t/m3 and 2.99 t/m3 for fresh rock.
- 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, sinceDecember 31, 2018 . A detailed summary of the updated Mineral Resources for Cordero and Nechí is as follows:
Category | Tonnage | Grade | Contained Metal |
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:
- CIM (2014) definitions were followed for Mineral Resources.
- 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.
- Mineral Resources are estimated using a long-term gold price of
US$1,800 per ounce for Cordero andUS$1,500 per ounce for Nechí. - At Cordero, Mineral Resources are reported within underground reporting shapes (DSO shapes)
- A minimum mining width of 1 m for Cordero and 1.3 m for Nechi was used.
- Bulk density is 2.0 t/m3 for saprolite and ranges between 2.64 t/m3 and 2.99 t/m3 for fresh rock.
- Numbers may not add due to rounding.
- 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
"Our development program at the
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
Mr.
The Company also owns an exploration property near Tucuma, Para State,
On behalf of the Board of Directors
"Javier Cordova Unda"
Chief Executive Officer and President
Neither the
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
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