Another Newfoundland Junior
This summer has been a real boring summer for junior gold stocks compared to last year. Last year with most of the world locked down, gold was flying high and there was quite a bit of excitement in the juniors. Lots of juniors saw their stock prices double, triple and there were some that even saw 10 bagger returns. This season though it's quite a bit different and is actually very boring. During times like this it seems interest wanes and stocks sell off on low trading volumes but for those who are optimistic on precious metal prices in the future, there is getting to be some fairly good buys out there.
A few years ago there was a small junior that caught my eye that hit a hot hole in Newfoundland. That junior was Sokoman Minerals TSX-V:SIC. In the summertime of 2018, four months after getting the Moosehead project, the firm announced the discovery of a brand new zone of gold mineralization in its initial hole which returned 11.90 m @ 44.96 g/t Au in what is now called the Eastern Trend. Subsequent drilling returned remarkable intercepts of 24.90 m @ 33.56 g/t Au and 5.10 m @ 124.2 g/t Au. This touched off what has ended up being now the best Gold play in Canada.
Newfoundland was frequently overlooked by juniors when searching for opportunities in the gold industry. The Abitibi Greenstone Belt of Northern Ontario and Quebec and the Golden Triangle area of British Columbia brought in most of the canadian interest. Sokoman held to the idea that the the Island might hold World Class Deposits. Looking into the geology, reviewing of historic records, working with regional prospectors, the company took on the project. With it's partners, the company is currently involved in one of the biggest land holdings in Newfoundland with over 150,000 hectares (1,500 km2) of mineral potential ground. Their primary focus continues to be the Moosehead project.
The Moosehead property contains 98 claims covering 2,450 hectares beside the Trans-Canada-Highway. The property is subject to a 2.0% NSR royalt consisting of 1.5% to the vendor and a 0.5% NSR royalty to an arms-length 3rd party. Moosehead sampling has returned worths of as much as 442 g/t Au from boulders as well as approximately 170 g/t Au over 1.53 metres from drill core examples. The mineralized system remains basically untested below an upright depth of 100 metres (the only "deep opening" converged 278 g/t Au over 0.45 m at a hole deepness of 257 metres) and continues to be open along strike. The Company is currently carrying Phase 6 diamond drilling program which started in September 2020, covering 10,000 m of drilling. A total of 4,009 metres in 15 holes has been completed to date. This phase of drilling has been increased to 50,000 meters.
Some past drill results are very impressive as you will see below.
- Phase 2:MH-18-39 returned 5.10 m @ 124.20 g/t Au, including 1.10 m @ 550.30 g/t Au
- Phase 3:MH-19-62 cut 4.8 m of 33.59 g/t Au, including 0.90 m of 124.15 g/t Au
- Phase 4:MH-19-81 cut 6.4 m of 17.34 g/t Au, including 1.45 m of 75.50 g/t Au
- Phase 5:MH-20-86 cut 4.70 m of 18.60 g/t Au, including 1.85 m of 46.99 g/t Au
- Phase 5:MH-20-82 cut 9.50 m of 5.70 g/t Au, including 1.70 m @ 29.19 g/t Au
The company has several other properties in it's portfolio of land holdings. The Fleur de Lys Project consisting of 1,920 claims (480 sq km). The Grey River Project which is joint with Benton Resources and consists of 324 claims. The company also has joint ventures with benton in the Kepenkeck and Golden Hope properties. Then Kepenkeck consists of 595 claims (15,625 hectares) and the Golden Hope consists of 3,146 claims (78,650 hectares) This is in the area as the former Hope Brook Gold Mine, and the advanced Cape Ray Project.
There is also a few properties that are optioned out to other juniors andthe company also has an iron ore project called the Iron Horse. On 2012 the company completed 8 diamond drill holes, the only holes on the property, and all holes intersected significant iron mineralization. Previous drilling by other companies in the past had been drilling for uranium. Up to 1800 parts per million uranium from float samples collected in past assays from previous operators.
Sokoman has 194 million shares out. Eric Sprott holds approximately 26% of the shares.
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