Soma Gold Resumes Operations at El Bagre Mine Following Community Blockade

Soma Gold Corp. (TSXV: SOMA) has announced the successful resolution of a community blockade that had temporarily halted operations at its El Bagre mine and mill in Antioquia, Colombia. The blockade, which began on July 3, was lifted following negotiations involving the company, the office of the mayor of Municipality of Zaragoza, and the local community.

CEO Geoff Hampson expressed relief and optimism following the settlement. “While this temporary suspension of work is expected to result in the loss of approximately 700 ounces of AuEq production, we are confident that this shortfall can be recovered during the remainder of the year. As a result, we are maintaining our guidance for F2024,” said Hampson.

The blockade was a result of community frustrations over delays in the maintenance and paving of a local road. The issues have now been addressed through a collaborative approach, with Soma and municipal authorities implementing a cost-sharing plan to pave approximately 3.5 km of the regional road.

The successful resolution has allowed Soma’s workers to return to their shifts, with normal production expected to ramp up by Wednesday morning. “The company’s workers will return to work for the Wednesday morning shift, and regular production is expected to ramp up by Wednesday,” Soma announced in a statement.

The blockade had forced the El Bagre site into care and maintenance status, restricting access for employees and supplies. Despite this, critical supplies, security, and maintenance crews were allowed access to ensure essential operations continued during the blockade.

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

Despite the recent disruptions, Soma Gold reported strong 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. The 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.

The company has extended its gratitude to all participants in the negotiations that led to the resolution of the blockade. “Management is pleased with the collaborative approach demonstrated in addressing the community’s concerns and allowing employees to get back to work,” Soma stated.

Soma Gold last traded at $0.52 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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