-- Soma Gold (SOMA.V) on Wednesday said that operations at the flagship Cordero Mine have stabilized following last year's labor disruption, with production rates returning to planned levels of 425-450 tonnes per day (TPD).
The company said it is advancing a "major" efficiency and capacity expansion at its El Bagre Mill through the installation of sensor-based sorting technology. It expects this initiative to increase production rate from 450 TPD to 650 - 700 TPD, deliver consistent mill feed of about 450 TPD at 5.8 - 6.2 grams per tonne (g/t) gold, "significantly" reduce cost per ounce and enable processing of a broader range of material grades.
Phase 1 remediation and optimization of the El Limon mill have largely been completed, and the facility has been operating at about 100 TPD. The company expects underground production to start in the third quarter of 2026, initially at about 40 TPD.
At the Aurora mine, explosives permit has been delayed but is expected to be received by May 2026, and a contract mining team has already been mobilized on site. Soma expects initial production and deliveries to begin in May or early June 2026.
The company said the initial 2,500-meter drill program at the Escondida mine which is expected to start in May 2026 will "rapidly determine" the strike and down-dip extent of the Escondida Vein and begin to quantify an NI 43-101-compliant gold resource on the La Escondida property. Production is expected to recommence in June 2026, with initial output of 10-20 TPD at about 9 g/t gold, increasing to the permitted 40 TPD by year-end.
Soma has also begun implementing its third-party mineralized material purchase program to supply the El Bagre Mill and the El Limon mill with various feed sources. Total production for 2026 is expected to be 23,489 gold equivalent (AuEq) ounces, with the company expecting to end the year at an annual run rate of 33,756 AuEq ounces.
"With improved mill performance, access to higher-grade zones at Cordero, and the near-term contributions from Diamantina, Aurora, and Escondida, Soma will soon experience a period of strong production expansion," said Soma Gold Chief Executive Geoff Hampson. "Combined with our sensor-based sorting initiative and the advancement of the Nechi Project, we believe the Company is exceptionally well positioned to achieve its target of 60 - 65,000 ounces annually by 2028."
Shares of the company closed down 8.4% to $1.74 on Tuesday on the TSX Venture Exchange.