Q1 AuEq production of 6,643 ounces, in line with budgeted ounces of 6,636.
Soma made a payment of $2.5 million on the Conex Loan.
Rehabilitation of the El Limon Mill is on schedule, under budget, and expected to be operational by mid-June.
Formalization of small miners on Soma's property continues, with two mines preparing to transport material to the El Limon Mill once rehabilitation is complete.
Soma, in partnership with other local companies, has been approved for a tax program that allows income tax due to the Colombian Government to be spent directly on capital programs benefiting the local community.
VANCOUVER, BC, April 17, 2025 /CNW/ - Soma Gold Corp. (TSXV: SOMA) (WKN: A2P4DU) (OTC: SMAGF) (the "Company" or "Soma") is pleased to provide a corporate update on several initiatives currently underway.
Soma Gold Corp. Logo (CNW Group/Soma Gold Corp.)
During the first quarter of 2025, Soma mined a total of 75,093 MT, of which 52% (38,855 MT) was ore and 48% (36,238 MT) was waste material, producing 6,643 AuEq ounces for the period. The average price per ounce of Au achieved during the quarter was USD $2,848 per ounce compared to USD $2,033 in Q1 2024. The average grade was lower than in the previous period due to development work to access higher-grade stopes in the Upper Cordero and Lower Venus areas, which resulted in increased dilution. Gold production is expected to be higher in H2 as the average grade increases and El Limon begins production.
Rehabilitation of the El Limon Mill is progressing, with completion expected in June. The updated budget is C$980,000 (including contingency), which is 30% below the original C$1.4 million budget – largely due to increased in-house work performed by Soma's team. El Limon Mill feed will come from excess production at Cordero, the production-ready Aurora Mine, and ore from two formalized small miners on the Soma's property. Initial production is anticipated to be 100 TPD, ramping up to 200 TPD.
The formalization of small miners continues to advance, with the Diamentina and Lemoncito Norte mines currently progressing through the process. A total of 28 formalization contracts are under review. If all contracts are approved, Soma could receive between 600-1,000 TPD. Ore delivered by formalized small miners tends to be higher grade, as these miners are more selective in the material they ship and can work in areas with narrow veins with less dilution.
When the Cordero Mine was permitted, Soma negotiated a benefits agreement with the local community that, among other programs, included paving the main road through the village. This project is being financed by Soma and several other regional companies, including Mineros S.A., who is acting as project manager. It was recently approved under a Colombian Government program that allows companies to pay for approved community projects in lieu of income tax payments. This enables Soma to meet its community commitments using funds that would otherwise have been paid in tax. The total cost of the 2.8 km road pavement is COP 15.34 billion (C$5.1 million), with Soma contributing COP 5.5 billion (C$1.8 million).
In March 2025, Soma made a C$2.5 million principal repayment on the Conex loan. Repayment terms of the loan call for a balloon payment due on July 31, 2030, and accrues interest at 12% annually. There are no penalties for partial or full early repayment. The higher-than-anticipated gold price enabled the Company to make this payment. Soma's goal is to reduce debt as quickly as possible while maintaining sufficient cash reserves to fund its accelerated exploration program to expand the Company's total resource. An updated NI 43-101 Resource Estimate is planned for early 2026.
Geoff Hampson, Soma's President and CEO, states, "Management is very pleased with the progress we have made on our properties in Colombia. We are looking forward to working through the relatively low-grade areas we are currently mining and accessing the higher-grade zones in Upper Cordero and the Venus Gap (as detailed in Soma's press releases dated July 16, 2023, and November 12, 2024). The Company is tracking to plan and will soon benefit from added production at the rehabilitated El Limon Mill. We are actively exploring several promising prospects using soil sampling, geophysics and DDH drilling – and early results are encouraging. In addition, we are acquiring additional adjacent properties where mineralized trends have been identified. The strong gold price has allowed Soma to build cash reserves in excess of operational, exploration, and capex needs, and we are applying the surplus to reduce debt on an accelerated basis. We are on track for a strong 2025 and beyond."
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.
With a solid commitment to sustainability and community engagement, Soma Gold Corp. is dedicated to achieving excellence in all aspects of its operations.
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
"Geoff Hampson" 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.
