(Kitco News) - Soma Gold (TSXV: SOMA) today announced positive preliminary economic assessment (PEA) for the development of the Cordero gold mine, located in Antioquia, Colombia.
The company said that PEA delivered robust project economics, with a pre-tax NPV of C$94.6million, and an after-tax NPV of C$55.9 million, using an 8% discount rate and base-case metal price of US$1,700 per ounce of gold.
Average annual gold production over life of mine is estimated at 44,376 ounces per year from 2023 to 2025. 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.
Importantly, the company said that 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.
Soma also announced that total updated inclusive indicated and inferred mineral resources in Antioquia, including both the Cordero mine and Nechí project, increased by 10% and 174% respectively, since December 31, 2018 to 127 koz Au in indicated category and 277 koz Au in inferred category.
Soma Gold 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.
El Bagre Complex consists of three underground mines, two of which, Le Ye and Los Mangos, will be mined out shortly, and Cordero, which is currently under development.
|
| Silver production in Peru down 10.2% in November 2022, ministry says |
