Junior Miner Drills Into Bonanza-Grade Gold Vein

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Soma Gold Corp. (TSXV:SOMA; OTC:SMAGF; WKN:A2P4DU) reported new drill results from the Venus Gap zone of its Cordero Mine, located within the Bagre Project in Antioquia, Colombia. The company announced that twelve underground diamond drill holes totaling 2,848 meters intersected the Venus Gap vein system, successfully extending it by approximately 135 meters down dip.

One of the most significant results came from hole RVICDDH-25-040, which returned 6.0 meters grading 7.5 grams per tonne (g/t) gold, including 0.65 meters at 9.3 g/t gold and 0.5 meters at 67.8 g/t gold. According to Soma’s Vice President of Exploration, Chris Buchanan, in the news release, “Drilling in the Venus Gap Zone continues to return the broadest, high-grade intervals in the mine. Extending this zone down dip adds resources to the mine plan and supports development of deeper levels of the Venus and Venus Gap veins.”

Other notable results included 2.1 meters at 11.9 g/t gold in RVICDDH-24-034 and 1.65 meters at 9.2 g/t gold in RVICDDH-24-032. The company noted that some holes intersected quartz veins without significant gold assays, which it attributed to the "nuggety" distribution of gold mineralization across the deposit.

The Venus Gap is one of five defined zones within the Cordero Deposit, which is hosted in the El Carmen Stock. The mineralization is structurally controlled, occurring within laminated quartz veins inside a sinistral brittle-ductile shear zone. Gold is primarily associated with later stages of vein development and micro-breccia zones often linked with high-grade mineralization.

These new results continue to build on previous drilling in the upper Venus Gap zone. In a November 2024 release, Soma had announced intercepts including 5.2 meters at 16.1 g/t gold and 7.55 meters at 13.9 g/t gold.

The ongoing drill program is part of Soma’s broader exploration efforts across its 410 square kilometer land position. Additional drilling is being conducted at nearby informal mining sites such as Colossa and Colossa 2, which were identified through regional soil sampling and geologic mapping.

Soma's Cordero Mine is located along the prolific Otú fault system, a more than 100-kilometer-long structure that hosts several high-grade deposits, including the Segovia-Remedios and El Limon mines. The company’s property covers over 56 kilometers of this regional fault, and further targets along the trend are undergoing evaluation.

Gold Sector Sees Tightening Supply, Investor Divergence, and Signs of Growing Demand

A May 26 report by John Rubino observed that gold, despite reaching record prices, remained underrepresented in average investor portfolios. He noted, “Gold-related ETFs seem to be an afterthought for the average investor,” even as the metal saw more than 70 percent appreciation in 19 months, driven in part by heightened interest from Chinese buyers and large retail outlets. Rubino pointed out that the increased demand had led retailers like Costco to impose stricter limits on gold purchases.

According to a May 27 report from Stewart Thomson, gold had surged from approximately US$1,800 in October 2023 to around US$3,500 by May 2025, a move he described as a “huge rally against US government fiat.” While he viewed the gold price as undergoing a consolidation phase, Thomson stated that “most money managers can’t invest in bullion, but they can buy the companies that mine it,” suggesting rising institutional interest in mining stocks as an indirect exposure to gold.

Thomson also pointed to the VanEck Junior Gold Miners Index (CDNX) as a leading indicator, stating that “junior mine stock investors are about to embark on a journey that will probably be best described as, ‘The 1970s on steroids’.” He emphasized that numerous Canadian junior mining stocks were experiencing breakouts, potentially signaling a broader trend of renewed interest in the sector.

On May 28, VBL reported that the retail landscape was also being affected by the surging gold price, with Costco cutting back allowable purchases to one gold bar per transaction. The report highlighted that “spot gold has appreciated over 70%,” and that 1-ounce South African bars were listed at US$3,279.99, up from approximately US$2,000 less than two years prior.

These developments have coincided with constrained inventories and heightened investor enthusiasm, particularly in Asia. While US generalist investors remained cautious, VBL described Chinese buyers as “getting much better advice than their American counterparts,” as indicated by consistent buying activity even as prices climbed.

Analyst Highlights Breakout Potential for Soma Gold

Technical analyst Clive Maund issued a favorable outlook for Soma Gold Corp. in a report dated April 11, citing the company's long-term technical structure and alignment with broader sector momentum.

Maund identified what he called a "giant 5-year long Cup & Handle base pattern" beginning during the COVID-19-induced market downturn in early 2020. While noting that Soma had not yet broken out of this formation, he indicated that the setup suggested a breakout could be near, supported by strength across the gold sector.

He described Soma Gold as "an immediate strong buy and hold for a long time," emphasizing the significance of the technical chart pattern. The report also warned that attempting to time the entry more precisely could lead to missing a potential upward move.

Laying the Groundwork for Future Growth

According to Soma’s June 2025 corporate presentation, the company has focused on building long-term value through organic growth and exploration-backed resource expansion. The company produced 6,594 ounces of gold equivalent (AuEq) in Q1 2025 and generated adjusted EBITDA of US$13.47 million. Net income for the quarter was US$3.17 million on revenues of US$27.88 million.

Soma expects to increase its current production rate of 450 tons per day (TPD) to 500–550 TPD by the end of Q2 2025, with plans to scale to 1,400 TPD by 2028. The expansion is supported by installed capacity and testing of ore-sorting equipment, which aims to improve head grades and gold recovery. The company projects a path to 70,000 ounces of annual production by 2028, with additional upside from a proposed US$6 million mill expansion.

El Limon Mill, with a 225 TPD capacity, is also scheduled to restart operations in Q2 2025, complementing the 450 TPD El Bagre Mill. Together, the two facilities form the backbone of Soma’s hub-and-spoke production model, fed by mines including Cordero, Limon, Nechi, and Machuca, along with contributions from formalized artisanal miners.

A new NI 43-101 compliant resource estimate is anticipated in the first half of 2026. Soma’s resource strategy targets over 1 million ounces, supported by annual drilling campaigns totaling approximately 30,000 meters.

The company’s ESG initiatives, including a formalization program for small-scale miners and the use of renewable hydropower, have earned it regional environmental performance awards and strong community support.

As underground drilling at the Venus Gap zone continues, Soma plans to access the lower portions of the vein system from existing infrastructure in the Victoria Ramp. Intersections from the latest program are expected to be followed up in Q4 2025, further delineating the vein system's extent and continuity.

Ownership and Share Structure

According to Refinitiv, 18.13% of the company is held by management and insiders.

CEO and Chairman Geoffrey Hampson has 16.9%.

Stategic entities hold 44.24% with Conex Services Inc owning 43.68%.  A further 0.29% of control is vested in institutions. The rest is with retail investors.

Soma has 34.68 million free float shares, a market cap of CA$42.54 million and a 52 week range of CA$0.42 to 0.76.