PRECIOUS METALS

Results encourage aspiring producer Sonoro

Plans to fast-track to production

Staff reporter

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Assays included 15.24m at 1.278g/t gold at the Japoneses zone and 16.76m at 0.841g/t at Buena Suerta.

CEO Kenneth MacLeod said the results indicated they were on track with plans to upgrade the project's inferred 201,000 ounce gold-equivalent resource.

He said work to develop a heap leach gold mine was also "right on schedule" although the company noted achieving production was subject to several material factors, including permitting and project finance.

"While we continue drilling our higher-grade gold targets , our primary focus remains on accelerating the proposed heap leach mine development with the intention of achieving production and cash flow by December 2021," chairman John Darch said.

Sonoro said it was expanding its development plans from a previously announced pilot level project to assess the economic viability of a proposed 8,000 ton per day mining operation.

The company changed name from Sonoro Metals in September. 

It had raised C$8 million in August, in a placement with the 60% overallotment option fully subscribed, priced at 22c per unit.

MacLeod also said yesterday all of its 5 million warrants exercisable at 15c had been exercised, for proceeds of $750,000.

Sonoro shares have ranged from 7-34c over the past year and closed unchanged yesterday at 26.5c, capitalising it at $21.7 million (US$20.2 million).

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