Soma Gold Corp Updates on Operations and Leadership Changes
Soma Gold Corp Announces Significant Operational Updates
In a significant leap forward, Soma Gold Corp (TSXV:SOMA) is thrilled to provide updates regarding the El Limon Mill commissioning, ongoing labor negotiations, and a key management appointment as it focuses on enhancing gold production capabilities.
El Limon Mill Operational Insights
The El Limon Mill is presently in the planned ramp-up phase of its operations. Currently, ball mill number 1 is fully operational, while the bull gear replacement for mill number 2 is actively in progress. Management anticipates achieving full operational capacity by the year's end, notwithstanding certain challenges presented by the labor strike at El Bagre.
Production Expectations and Advances
Although the El Limon workforce is non-unionized, it largely relies on support services from the El Bagre operation. Fortunately, Soma’s management has effectively secured alternative resources, enabling the mill to continue its development. Encouragingly, the initial gold production from the Merril Crowe circuit has yielded 40 kg of precipitate, marking a promising start. Furthermore, additional automation measures are being implemented to tackle operational disruptions linked to the thickener tank, ultimately aiming to enhance processing reliability. The company projects that full production at 200 TPD (tonnes per day) will be realized by the first quarter of 2026.
Appointment of a New Vice President
In another strategic development, Soma Gold has appointed Mr. Julian Storz as the Vice President of Business Development, whose base will be in Toronto. His background will prove beneficial as Soma continues to expand its operations both locally and internationally, acquiring properties, mines, and processing facilities primarily in Antioquia, which has previously bolstered its mineral portfolio and gold production capabilities.
Mergers and Acquisitions Strategy
Mr. Storz is tasked with spearheading initiatives for inorganic growth, particularly through mergers and acquisitions, enhancing jurisdictional diversity, and delineating new production regions that align with the company's core strategy and investment objectives. He expresses his enthusiasm about joining the company at what he describes as a pivotal juncture, indicating the robust growth potential in Soma’s operations.
Updates on Labor Negotiations at El Bagre
Currently, negotiations remain ongoing to resolve the strike involving unionized employees at the El Bagre Mill and Cordero Mine. Assisted by the Colombian Ministry of Labor, some progress has been documented, though critical issues persist, particularly concerning the union’s demand for co-administration rights. Soma is committed to reaching a fair resolution with its employees, aiming for a mutually beneficial agreement to facilitate the quick resumption of operations.
Fostering a Collaborative Environment
As stipulated under Colombian law, strikes extending beyond 60 days necessitate binding arbitration, which mandates workers return to their posts approximately 10 days following the 60th day of the strike. This unique regulatory aspect suggests a proactive approach will be necessary to resolve negotiations swiftly.
CEO's Insights on the Current Landscape
Soma's CEO, Geoff Hampson, has expressed gratitude for the support and guidance provided by the Ministry of Labor amid negotiations. He underlines the generous offer made to the union, which surpasses the recently negotiated contract terms with other regional mining companies. This collaborative spirit is crucial as the company prepares for potential arbitration should the strike prolong past the designated timeframe.
Production Goals and Historical Context
Reflecting on operational milestones, Mr. Hampson recalls how the El Limon Mill was Soma’s inaugural asset in Colombia, transitioning from 50 TPD to 225 TPD in 2018-2019, alongside acquiring the El Bagre Mill, which offers enhanced capacity. With the enhancement of the Aurora Mine, acquisition of the Escondida Mine, and formalizing partnerships with small miners, Soma is on track to produce an estimated 500-1,000 ounces of gold monthly at Limon. They aim to reach optimal throughput by year-end.
About Soma Gold Corp
Soma Gold Corp (TSXV:SOMA) is a dynamic and profitable mining enterprise that focuses extensively on gold production and mineral exploration. It manages over 43 square kilometers of mineral concessions along the rich OTU fault in Antioquia. With two fully permitted mills located closely together, Soma boasts an impressive combined milling capacity of 675 TPD. The El Bagre Mill currently operates at 450 TPD, with plans to restart operations at El Limon shortly. A regional exploration program is being financed through internally generated funds.
In alignment with its commitment to sustainability and community engagement, Soma Gold Corp is dedicated to achieving excellence across its operational spectrum, while also pursuing opportunities for further growth and development.
Frequently Asked Questions
What updates were given by Soma Gold Corp?
Soma Gold Corp provided updates on the operational status of the El Limon Mill, labor negotiations, and announced a new VP appointment.
Who is the new Vice President of Soma Gold Corp?
Mr. Julian Storz has been appointed as the Vice President of Business Development, focusing on growth through mergers and acquisitions.
What production capacity is expected at El Limon Mill?
Full production capacity of the El Limon Mill is anticipated to reach 200 TPD by Q1 2026.
How is Soma Gold Corp addressing labor disputes?
Soma Gold Corp is actively negotiating with union representatives while seeking a fair resolution to labor disputes at the El Bagre Mill.
What is Soma Gold Corp's commitment to sustainability?
Soma Gold Corp is dedicated to sustainable practices and community engagement while seeking operational excellence.
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