- Microcap commodities stock Soma Gold (TSXV:SOMA) announced a sizeable increase in production during its Q1 2024
- The gold miner recorded production 7,335 gold-equivalent (AuEq) ounces for Q1 2024, an increase of 8 per cent over Q1 2023
- The company decided that a shift in the mining method at its Cordero Mine would lead to reduced mining costs that can optimize gold production, and this is expected to continue through the rest of the year
- Soma Gold stock opened trading at C$0.62 per share
Microcap commodities stock Soma Gold (TSXV:SOMA) announced a sizeable increase in production during its Q1 2024.
The Vancouver-based gold miner recorded production for Q1 2024 was 7,335 gold-equivalent (AuEq) ounces. The company stated this represents an increase of 8 per cent over the same period in 2023.
The company also decided that a shift in the mining method at its wholly owned Cordero Mine in Antioquia, Colombia would lead to reduced mining costs while also optimizing gold production. While the shift during Q1 saw AuEq production come out slightly lower than expected, the company did see mining costs go down along with dilution rates, and this is expected to continue through the rest of the year.
Current mechanized techniques by the mining team have combined cut and fill along with raised stope methods, but they found that in most areas of the mine, this approach required larger headings to accommodate the equipment, generating more waste rock than necessary and higher than expected dilution rates. It was here it was determined that transitioning most of the mining to the conventional raised stope method will facilitate more selective mining practices and result in a higher head grade.
“While the transition to the new mining method has presented some disruption, it is proving beneficial in terms of cost reduction and improving the mill head grade,” Soma Gold’s president and CEO, Geoff Hampson, said in a news release. “We anticipate the full impact of these changes to be felt in the second half of the year. The decision to change the mining method was made as a result of our experience in mining the deposit as well as from the extensive definition drilling conducted during the last year, from both the surface and underground. This data led to a better understanding of the geological model and nature of the deposit. The management team believes that the deposit is now being mined under optimal methods. The combination of the improved costs and an improvement in head grade will result in higher quarterly production for the balance of the year.”
Soma Gold stock (TSXV:SOMA) opened with a more than 3 per cent loss, trading at C$0.62 per share, but it has risen 31.58 per cent in the past month and 19.23 per cent past year.
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