RE: Ask yourself20 May 2023 14:37
Ha, if you took the trouble to read the link you would see that it was a link to the Soma Gold Annual Report published about two weeks ago.
In that report, SG specifically says it has entered into agreements with three formerly illegal miners to process their gold produced from the El Limon license. What it doesn't say is when the agreements were concluded and if they are already processing gold. The only mill they have up and running is the one at El Bagre: they intend to bring El Limon back online in Q4. The deal was that they had to pay the royalty on any gold processed at El Limon regardless of the source and had similarly to pay the royalty on any production from the El Limon license.
"The El Limon Project (“El Limon”) is adjacent to the El Bagre Project, and the two mills are approximately 10 kilometers apart. El Limon includes a past producing underground mine and a gold processing plant with a capacity of approximately 225 tpd. The plant is permitted to process up to 400 tpd to allow for future expansion. The El Limon mine and mill have both operated sporadically during the past several years and the Company is planning on restarting the mill when the Company’s overall production in the district, including from the El Bagre complex, warrants. The mine is subject to a 3% NSR royalty on gold mined on the El Limon mineral licenses, to a maximum of US$2,000,000. Upon reaching the US$2,000,000 NSR
royalty threshold, the NSR royalty decreases to 0.5% up to a maximum of US$1,000,000. Soma has formalized agreements with three of the (formerly illegal) small miners on the El Limon Project and anticipates formalizing additional miners in the future. This allows them access to modern mining and processing technologies, including eliminating the need to use mercury to extract gold. These small miners will provide some of the feed for the El Limon mill"
I realise you are an expert on everything without having to read anything but it might help to read something now and then. Personally, I find reading stuff helpful.
DYOR
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