News Summary
On December 19, 2025, Soma Gold Corp. announced a definitive agreement to purchase and install a sensor-based sorting (SBS) facility at its El Bagre operation in Antioquia, Colombia. The project budget is approximately US$2.2 million, with commissioning targeted for the first half of 2026. This follows pilot test work on material from the Cordero complex which showed a 55% mass rejection rate of waste material while maintaining 95% metallurgical recovery, resulting in a 62.5% gold grade upgrade for the material sent to the mill.
Material Impact
This news is Material – Positive as it represents a relatively low-cost (US$2.2M) capital project that allows for a significant increase in gold production without requiring a massive, multi-year mill expansion.
– Operational Efficiency: Rejecting 55% of waste before it enters the mill effectively doubles the available mill capacity for mineralized material.
– Margin Expansion: By upgrading the feed grade by 62.5%, the company lowers its per-ounce processing costs and increases recoveries from material that was previously considered sub-marginal or waste.
– Continuity: The move from “testing” (announced in Oct 2025) to a “definitive agreement” (Dec 2025) shows management is moving quickly to realize these gains following the production losses incurred during the Q3 labor strike.
Catalysts
– El Limon Mill Ramp-up: Management expects El Limon to be at full capacity (200 TPD) by early January 2026. Watch for confirmation of this milestone.
– 2026 Guidance: Following the 5,000-ounce production miss in 2025 due to the strike, investors should look for official 2026 production and cost guidance to see if the SBS facility impact is priced into the first half or second half.
– Resource Update: An updated NI 43-101 resource estimate is planned for early 2026 to include the high-grade hits from the Venus Gap and Cordero Viejo zones.
Materiality Conclusion
The combination of a successful labor resolution, the expansion of high-grade veins at Cordero (45.2 g/t over 5.5m), and the formalization of the SBS facility creates a clear path for increased production in 2026. The most recent news confirms that the “organic growth” strategy is moving from exploration to technical implementation.
