Soma Gold Corp (OTCMKTS:SMAGF) Stock Makes An Interesting Move: How To Trade Now
Soma Gold Corp (OTCMKTS:SMAGF) stock was in nice action as the stock closed higher in the previous trading session.
Market Action
On Wednesday, SMAGF stock closed up by 6.30% at $0.2755. More than 249k shares have exchanged hands, below its average volume of 9k shares. The stock opened at $0.2984 and moved in a range of $0.2754 – 0.3126.
Soma Gold Announces 37% Increase in Q3 Production
Here are the highlights:
Soma Gold announced that gold production for the Quarter ended September 30, 2021, was 5,289 ounces compared to 3,866 ounces in the Quarter ended June 30, 2021. The increase in production was attributable to the feed from the newly opened Cordero Mine, supplementing the feed from the Mangos and La Ye Mines. The average grade of the material mined at Level 2 of the Cordero Mine has been approximately 9.0 gpt (grams per ton) versus the average grade of Mangos and La Ye of 4.5 gpt.
Development work continues underground, and mining of mineralized rock from the stopes is expected to begin in November.
Construction work accessing Level 3 is on-going and expected to be completed in October with two additional faces opening in November and December. Development work on the ramp to levels 4 and 5 is expected to be completed in Q1 of 2022. Once the construction phase is completed, the Cordero Mine is expected to produce 600 TPD at an average head grade of 6.5 gpt. Over the next several months as mining accelerates, gold production will increase to 7,500 ounces per Quarter.
In addition, the Company announces that it is on schedule to retire the first-stage-obligations of the Off Take Agreement dated September 4, 2020 with Nueva Grenada Gold Corp and MVPR International Corporation, . The agreement contemplated stage 1 deliveries until December 2022. Gold to be delivered under stage 1 of the Agreement is 12% of the first 24,500 ounces produced. That milestone will be reached in December 2021. The second stage of the obligations is based on 6% of the next 22,000 ounces produced. That obligation will be met in the early part of Q4 of 2022.
