Sonoro Gold Corp V.SGO

Sonoro to Commence Production Next Year

[JasleenDhaka]

It looks like the company is aiming to commence production next year. The report highlights that Sonoro has completed an updated resource estimate for its Cerro Caliche gold project in Sonoro, Mexico. While the resources remained flat at 440 Koz AuEq, the grades increased by 7% to 0.45 gpt, which could potentially lead to lower operating expenses.

What's even more interesting is that there is potential for resource expansion as only 30% of the property's known mineralized zones have been tested. Management is also working on completing an updated Preliminary Economic Assessment (PEA) by Q2-2023, and with the higher grades in the updated resource estimate, stronger economics are expected from the updated PEA. The previous PEA completed in 2022 had returned an AT-NPV5% of US$54M and an AT-IRR of 46%, using US$1,750/oz gold. Plus, the project can be advanced to production at a relatively low CAPEX of US$26M.

There are some upcoming catalysts to watch out for, including the updated PEA, near-term production potential, and project financing.

For more detailed information, we encourage readers to check out the full report: https://www.researchfrc.com/sonoro-gold-corp-tsxv-sgo-otcqb-smoff-aiming-to-commence-production-next-year-final-report/

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*Past performance is not indicative of future results.