Soma Gold Halts Operations at El Bagre Mine Due to Community Blockade

Soma Gold Corp. (TSXV: SOMA) has announced a temporary halt in mining and processing activities at its El Bagre mine and mill in Antioquia, Colombia due to a community blockade. The blockade, which began on July 3, has restricted access for employees and supplies, resulting in the site entering care and maintenance status.

The blockade stems from community frustration over delays in local road maintenance and paving. Despite ongoing efforts by Soma and municipal authorities to address these concerns through a cost-sharing plan for paving approximately 3.5 km of regional road, the community remains dissatisfied with the pace of progress.

CEO Geoff Hampson expressed the company’s commitment to resolving the situation, stating, “We are actively collaborating with the local community and are confident that a solution will be achieved in the coming days. While the blockade has caused a temporary production halt, we anticipate accessing a higher-grade area of the mine in the second half of the year and remain optimistic about meeting our full-year production targets at Cordero.”

The company has successfully negotiated with the community to allow access for critical supplies, security, and maintenance crews, ensuring that essential operations can continue. Discussions between all parties are ongoing, with a mutual goal of resolving the situation promptly.

In late June, Soma completed a planned maintenance shutdown of the El Bagre mill, which included a successful rebuild of the ball mill. Operations resumed on schedule following the maintenance period.

Despite the recent disruptions, Soma reported solid production numbers for the second quarter of 2024. The company produced 6,590 gold equivalent (AuEq) ounces and sold 7,209 AuEq ounces during the quarter. Total AuEq ounces sold for the first half of the year amounted to 14,233, representing 99.7% of the planned 14,277 AuEq ounces for the period.

Soma Gold last traded at $0.56 on the TSX Venture.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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