Sokoman down 22% on Nfld drilling latest
Sokoman Iron Corp. [SIC-TSXV] shares were active Wednesday after the company released assays from its high-grade, low-sulfidation, epithermal-style Moosehead Project in Central Newfoundland.
The assays are from the remaining 12 holes of 15 completed in a Phase 1 drill program.
The company said two holes intersected near surface, high-grade visible gold veins highlighted by MH-18-08 which intersected two veins assaying 1.05 m at 207.51 g/t gold from 8.50 m downhole, and 2.28 m at 42.36 g/t gold from 33.07 m downhole.
On Wednesday, Sokoman shares dropped 21.57% or $0.05 to 20 cents on heavy volume of 6.38 million. That made Sokoman the most actively traded stock on the TSX Venture Exchange in early afternoon trading.
Sokoman recently said its first drill hole, MH-18-01, at Moosehead returned 11.9 m of 44.96 g/t gold from 109 m to 120.9 m.
The July 24, 2018, announcement sent Sokoman shares rallying from $0.05 to a high of 50 cents on August 7, 2018. The company recently closed a private placement of 20 million units priced at 15 cents per unit, generating $3 million. Proceeds of the placement will be used to advance the Moosehead project where multiple targets remain untested as well as follow up drilling after a successful Phase 1 program.
Eight of the 15 holes completed in Phase 1 reported visible gold-bearing quartz vein zones.
“Results from Phase 1 have surpassed our expectations and have given us great cause to be optimistic about the future,” said Sokoman President and CEO Timothy Froude. He said the recent financing has provided the company with the opportunity to thoroughly evaluate the Moosehead property and to unlock its full potential. “Like many structurally controlled gold deposits, this will entail a lot of drilling – likely closely spaced,” Froude said.
Phase 2 will focus on an area known as the Eastern Trend’s high-grade mineralization intersected in MH-18-01, and continue to build on open-ended zones of mineralization in the Western Trend as well as other areas of the property.
District Copper Corp. [DCOP-TSXV] has also been on investor radar screens after the company said it has acquired a 13,025 hectare land package known as the Stony Lake East Gold Project in Newfoundland.
In a press release on August 15, 2018, District Copper said the land package was acquired under an agreement with an arm’s length third party, and is contiguous, and on strike with Sokoman’s Moosehead project.
District Copper, previously known as Carmax Mining Corp., had been engaged in exploration for porphyry copper-gold-molybdenum deposits in northwestern B.C. prior to the name change. Key assets included a 100% interest in the Eaglehead porphyry project located approximately 40 kilometres east of Dease Lake. First discovered in 1963, the project has since been the focus of several exploration programs completed by various companies.
District Copper shares fell 14.3% to 6 cents on volume of 3.6 million on Wednesday.