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Soma Gold expects to be using full processing capacity by year-end as revenue grows in second quarter

Published: 08:04 01 Sep 2021 EDT

gold and dollar bills
Soma owns two adjacent mining properties (La Ye and Mangos) in Antioquia, Colombia with a combined milling capacity of 675 tonnes per day (tpd) and is permitted for 1,400 tpd

Soma Gold Corp, the Colombia-focused gold miner, recorded strong revenue growth in its second quarter and a narrowing loss as the firm told investors it expects to increase the amount of through-put by the end of the year.

Revenue for the three months to June 30 came in at C$8.3 million, up from C$1.6 million in 2Q, 2020 after the sale of 3,802 ounces of gold-equivalent (2Q, 2020: 707 ounces). The net loss for the period was C$1.1 million versus a loss of C$2.4 million in the same quarter a year earlier.

READ: Soma Gold updates on progress of Fenix portal at Cordero mine; full daily production expected by end of 2021

Soma owns two adjacent mining properties (La Ye and Mangos)  in Antioquia, Colombia with a combined milling capacity of 675 tonnes per day (tpd) and is permitted for 1,400 tpd, while its El Bagre processing mill is currently operating and producing.

"The financial results for the quarter were as expected due to the fact that mining during the quarter was restricted to only the La Ye and Mangos mines," said Javier Cordova, Soma's CEO.

"Full utilization of the installed capacity is expected by the end of 2021 when 400 tpd of new production is expected from the Cordero mine, which began production mid-August. In addition to the increased through-put, the average grade at Cordero is expected to be approximately 50% higher than the mineralized material currently being mined at La Ye and Mangos mines."

Post period-end, in July, the company reported it was moving towards beginning full mining operations at its Cordero mine, saying the Fenix portal had now reached level 2 and encountered the vein.

The Fenix decline is also being extended to intersect the vein at Level 3, which will increase mining to 400 tpd in November, 2021. It is anticipated that this additional through-put will justify the re-start of the El Limon mill before the end of the fourth quarter, added Soma.

Also  in July, Soma announced that it was taking part in a program initiated by leading Colombian companies in cooperation with the Colombian government to provide Covid-19 vaccinations to its employees working at the El Bagre mine site and their families.

Soma is hosting a webinar to discuss the quarterly results and to discuss the projections for the balance of 2021 and for 2022. The webinar will be held on September 1, 2021 at 2pm ET. Registration details can be found HERE.

Contact the author at giles@proactiveinvestors.com

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