Sokoman Iron Corp. [SIC-TSXV] shares rallied sharply Friday November 16 as the company released more drill results from its Moosehead gold project in central Newfoundland.
The company said it has received assay results for five of seven holes completed to date in the property’s Eastern Trend. They are part of an ongoing 10,000-metre Phase 2 drilling campaign that features two drill rigs and commenced in October. Approximately 5,000 metres in 19 holes have been completed property wide in Phase 2.
Highlights include MH-18-17, which returned 24.90 metres of core length grading 33.56 g/t gold.
Sokoman shares advanced on the news, rising 53.12% or $0.085 to 24.5 cents in early afternoon trading Friday on volume of 13.4 million. Earlier in the session, the shares traded up to 32 cents.
A key player in a gold rush taking place in central Newfoundland, Sokoman emerged on investor radar screens when it struck gold with the first hole drilled at its Moosehead gold project. It has described the site as an accessible orogenic lode 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. The quartz vein that lies between the previously drilled Western and Eastern trends on the Moosehead project possibly indicating the existence of a new trend, the company said.
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, OTC-MGDPF] which is developing what is expected to be Newfoundland’s largest ever gold mine on its Valentine Lake property
Subsequent to the July 24 announcement, Sokoman completed a $3,000,000 financing and is now well funded to execute the current drill program. Altius Minerals Corp. [ALS-TSX; ATUSF-OTCQX] owns 9,182,942 common shares of Sokoman plus 1,800,000 warrants and a 1.5% NSR royalty on the project.
“Early results from the Phase 2 drilling have expanded the extent of the high-grade mineralization in the Eastern Trend, as well as discovering a potentially significant new zone of gold mineralization in [drill hole] MH-18-103, one kilometre north of the Eastern Trend,” said Sokoman President and CEO Timothy Froude.
“The drill holes have also demonstrated that the orientation of the structure hosting the Eastern Trend mineralization is different than initially thought, and that future drill testing of the Eastern Trend would be more effectively completed during the winter from the ice on the North Pond,” he said.
“This will result in shorter drill holes required to intersect and define the lateral extent of the Eastern Zone, than drilling from the west of the North Ponds.”
Froude went on to say that Moosehead is a complex system and the company is learning with every drill hole.
Meanwhile, the company said a total of 2,493 metres in seven holes have been completed in the Eastern Trend by Rig #1, following up on drill hole MH-18-01 which returned 11.90 metres, grading 44.96 g/t gold.
Rig #2 has completed five holes (1,331 metres) testing targets up to one kilometre north of the Eastern and Western Trend areas.