Soma Gold Corp. (TSXV: SOMA | OTC: SMAGF) — El Limon Mill Ramping Up Toward Full Capacity; Updates on Labor Negotiations and New VP Appointment
Overview
Soma Gold Corp. (“Soma” or the “Company”) has provided a corporate update outlining operational progress at its El Limon Mill in Colombia, ongoing labor negotiations at the El Bagre operation, and a new senior management appointment.
The El Limon Mill, which recently resumed operations, is currently in the planned ramp-up phase and expected to reach full throughput by December 2025, with steady-state production of 200 tonnes per day (TPD) anticipated by Q1 2026. Concurrently, Soma is advancing discussions to resolve a labor strike at its El Bagre Mill and Cordero Mine, while also strengthening its corporate leadership with the appointment of Mr. Julian Storz as Vice President, Business Development.
Key Developments
1. El Limon Mill Ramp-Up
- The El Limon Mill is operational, with Ball Mill No. 1 in service and replacement of the bull gear on Ball Mill No. 2 underway.
- The first gold production from the Merrill-Crowe circuit yielded approximately 40 kilograms of precipitate.
- Additional automation and mechanical adjustments are being installed to improve the reliability of the thickener circuit and overall processing continuity.
- The mill is expected to reach full capacity by December 2025, contributing approximately 500–1,000 ounces of gold per month once stabilized.
- Following the testing of new ore-sorting equipment, management will evaluate installation at El Limon, which could increase throughput to 400–425 TPD in future phases.
2. Labor Negotiations at El Bagre
- The Company continues to work with the Colombian Ministry of Labor to resolve the work stoppage involving unionized employees at the El Bagre Mill and Cordero Mine.
- While progress has been achieved on certain matters, the issue of co-administration rights remains under discussion.
- Under Colombian labor law, once a strike reaches 60 days, the matter proceeds to binding arbitration, requiring workers to return to duty approximately 10 days after the 60th day, even as arbitration continues.
- The 60-day period concludes on November 7, 2025, by which time Soma anticipates a resolution or transition into the arbitration process.
3. Appointment of Vice President, Business Development
- Mr. Julian Storz has joined Soma’s management team as Vice President, Business Development, based in Toronto.
- Mr. Storz brings more than a decade of experience in corporate finance, banking, M&A, and capital markets, having most recently served as Director, Investment Banking – Mining & Metals at an independent Toronto-based investment bank.
- He will focus on identifying strategic and accretive growth opportunities, including mergers, acquisitions, and partnerships, aimed at diversifying Soma’s production footprint beyond Colombia.
4. CEO Commentary
CEO Geoff Hampson acknowledged the challenges posed by the labor disruption but emphasized the Company’s commitment to fair negotiations and operational continuity.
He noted:
“We appreciate the Ministry of Labor’s involvement in helping find common ground with the union. Soma’s proposal is consistent with, and in many cases exceeds, the terms reached by other mining companies in the region. At the same time, we’re encouraged by the El Limon Mill’s progress, which supports Soma’s ongoing production goals.”
Context
Soma Gold operates two fully permitted mills: El Bagre (450 TPD) and El Limon (225 TPD) - located approximately 25 kilometers apart in the Antioquia region of Colombia, alongside multiple small-scale formalized mining partners. The Company also maintains an exploration property near Tucumã, Pará State, Brazil, under option to Ero Copper Corp.
The El Limon restart follows upgrades completed in 2019 and represents a key component of Soma’s plan to optimize its existing asset base and reduce operational dependence on the El Bagre facility. Management expects the combination of increased throughput, automation improvements, and new sourcing from the Aurora and Escondida Mines to enhance production stability through 2026.
ArcStone Commentary
Soma’s latest update highlights a transitional period in its Colombian operations, with near-term focus on two core priorities: achieving full-scale production at El Limon and resolving the El Bagre labor stoppage. The ramp-up progress and outsourcing of key services have allowed limited gold production to resume despite ongoing challenges.
The addition of a Toronto-based VP, Business Development provides additional depth to Soma’s growth platform as it evaluates jurisdictional diversification and new asset acquisition opportunities.
The Company’s operational posture remains centered on maintaining production continuity, supporting workforce stability, and strengthening long-term cash flow visibility as the El Limon mill returns to sustained throughput.
About Soma Gold Corp.
Soma Gold Corp. (TSXV: SOMA | OTC: SMAGF) is a Canadian mining company focused on gold production and exploration in Antioquia, Colombia. The Company controls over 43 km² of mineral concessions along the OTÚ Fault and operates two fully permitted mills with a combined capacity of 675 TPD. Soma is committed to responsible mining practices, community engagement, and operational efficiency across its projects.
You can read the full press release below:
ArcStone Financial Pulse Team
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