Sokoman Iron Corp. [SIC-TSXV] on Friday December 14 released more assay results from its Moosehead gold project on the island of Newfoundland, a move that sparked heavy trading in the shares.
Sokoman was down 11.43% or $0.02 to 15.5 cents on volume of almost 7.6 million, making the junior the most actively traded stock on the TSX Venture Exchange. The 52-week range is 58 cents and 3 cents.
Sokoman emerged as a key player in an unfolding gold play in central Newfoundland when it released results from the first hole drilled at its Moosehead gold project.
On July 24, 2018, the company said drill hole MH-18-01 returned 11.9 metres of 44.96 g/t gold in quartz veining at a down-hole depth of 109 metres to 120.9 metres.
That announcement sent Sokoman shares rallying from $0.05 to a high of 50 cents on August 7, 2018, sparking a wave of acquisitions in the area by companies such as Antler Gold Corp. [ANTL-TSXV], and RJK Explorations Ltd. [RJX.A-TSXV; RJKAF-OTC]. The rush to find gold in the area is led by Marathon Gold Corp. [MOZ-TSX; MGDPF-OTC] which is developing what is expected to be Newfoundland’s largest ever gold mine on its Valentine Lake property. It has described the site as an accessible orogenic lode gold project.
The latest Sokoman results are from a Phase 2 program consisting of 7,243 metres of core in 35 holes, including 11 holes in the Eastern Trend, 13 holes in the Western Trend, and 11 holes focused on targets up to 1.0 km north and 500 metres south of the Eastern and Western Trend areas.
Highlights include drill hole MH-18-39, which returned a 5.10-metre (core thickness) intercept averaging 124.20 g/t gold, including a 1.10-metre visible gold-bearing quartz vein averaging 550.30 g/t gold.
On Friday, the company said recently received results include outstanding samples from previously announced holes, as well as [generally rush assays] representing selected intervals from holes in the Eastern Trend [area].
“Phase 2 has expanded the footprint of the Eastern Trend with step-outs to the North and South of the Discovery Hole, as well as 35 metres up-dip,” said Sokoman President and CEO Timothy Froude. Assays are pending from two holes drilled up-dip from MH-18-01 and MH-18-17 and shoulder samples from the 5.10-metre intercept from MH-18-39.
“As we have reached the limit of practical drilling from the west side of North Pond, we are currently permitting a Phase of winter drilling from the ice of North Pond to more effectively test the Eastern Trend while also cutting costs,” said Froude.
Meanwhile, the company said drilling operations have been suspended for the holiday period and until all outstanding assays have been received, compiled and interpreted.