SOMA GOLD ANNOUNCES AGREEMENT TO ACQUIRE THE ESCONDIDA MINE IN ANTIOQUIA, COLOMBIA
The La Escondida Mine is a legal small-scale operation with a full set of permits, including a PTO, environmental, and explosives permit. There are two winzes into the main Escondida vein and a small informal mill on the property. The site is accessed via a gravel road from Zaragosa or Cáceres, Colombia. The road is suitable for truck access, with a travel time of approximately 1.5 hours from the site to the El Limón Mill in Zaragosa.
The Escondida vein has been traced for 800 meters along strike to the northeast and down-dip for approximately 135 meters. The vendor has mined 200 meters of strike length down to a vertical depth of 105 meters. The mine was developed in 5-meter levels, most of which have been backfilled. The mine produces 10-20 tonnes of ore per day at approximately 9.0 g/t Au, which reflects the mill's current capacity.
The vein is 15-50 cm thick but is accompanied by a 1.0-3.0 meter thick clay alteration package that is also variably mineralized. The style of veins, alteration, and sulphide mineralization is consistent with an intermediate sulphidation epithermal vein system. The host rock is a competent intermediate to felsic intrusive rock.
The geometry of the vein, known strike-length, and gold tenor of the current production suggest that the Escondida vein is likely to contain a significant quantity of gold. However, there has never been a drilling program to sample the strike extent of the Escondida vein. An initial 2,500-meter drill program would rapidly determine the strike and down-dip extent of the Escondida Vein and begin to quantify a NI 43-101-compliant gold resource outside on the La Escondida property. In addition to the main vein that is currently being mined, at least five other veins are known on the tenement from illegal surface workings and prospecting.
Regional, coarse-scale geophysics indicates that the vein-hosting structures extend on the property to the northeast and southwest. Additional quartz veins are known from illegal surface mining, but the tenement has never been systematically explored. An exploration program, including geological mapping, prospecting, and soil sampling, will be conducted to evaluate the entire project area for additional gold mineralization.
The purchase price is US$3 million, payable in tranches of US$1 million at closing, US$500,000 on the first anniversary, US$500,000 on the second anniversary, and US$1 million on the third anniversary. Soma will also pay a 0.5% NSR on all gold produced from the site. The NSR can be purchased at any time for a one-time payment of US$750,000.
Geoff Hampson, Soma's CEO, states, "The purchase of the Escondida Mine aligns with our strategy to grow production from our operations in Antioquia. Soma will invest in operational improvements to quickly increase production at Escondida to 40-50 tonnes per day. The ore will be trucked to the El Limón Mill for processing. The average grade at Escondida is higher than the grades of ore from the Cordero and Aurora mines, which are currently being stockpiled at El Limón. As such, Escondida ore will increase the average head grade at the mill. Preliminary geological work on the vein structure indicates the potential for a significant addition to Soma's resource. A drilling program is planned for Q3 2025 to test the indicated 800 meters of strike, the vein extension at depth, and an additional vein on the property. It is anticipated that these results will support the inclusion of additional resources in the NI 43-101 Technical Report Update scheduled for early 2026."
ABOUT SOMA GOLD
Soma Gold Corp. (TSXV: SOMA) is a profitable mining company focused on gold production and exploration. The Company owns over 43 sq. kilometers of mineral concessions following the prolific OTU fault in Antioquia, Colombia and two fully permitted mills located within 25 kilometers of each other, with a combined milling capacity of 675 tpd. The El Bagre Mill operates at 450 TPD and the el Limon mill is slated to re-start operations in Q3 2025. Internally generated funds are being used to finance a regional exploration program.
With a solid commitment to sustainability and community engagement, Soma Gold Corp. is dedicated to achieving excellence in all aspects of its operations.
The Company also owns an exploration property near Tucuma, Para State, Brazil that is currently under option to Ero Copper Corp.
On behalf of the Board of Directors
"Geoff Hampson"
Chief Executive Officer and President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements, analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change except as required by applicable laws. Investors should not place undue reliance on forward-looking statements.
SOURCE Soma Gold Corp.
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