Record Gold Production of 23,115 ounces in 2022
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, sinceDecember 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 ofJanuary 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 2nd 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 theCordero 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.
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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