Sokoman Iron sparks gold fever in Newfoundland

VANCOUVER — Sokoman Iron (TSXV: SIC; US-OTC: GDNDF) has struck gold with the first hole in drilling at its Moosehead gold project in central Newfoundland, 20 km west of the town of Grand Falls-Windsor.

On July 30, Sokoman reported hole 18-1 cut 45 grams gold per tonne over 11.9 metres from 109 metres downhole. Significant assay results were also found up and downhole of the quartz vein. That vein lies between the previously drilled Western and Eastern trends at Sokoman’s Moosehead gold project, possibly indicating a new trend.

Sokoman drilled hole 18-1 to test the up-dip potential of a historical intercept in 2003 by Moosehead’s previous owner, Altius Resources. (The highlighted results occurred 80 metres up-hole from that intended target).

Sokoman bought 100% of the Moosehead gold project (subject to an existing 0.5% net smelter return royalty) from Altius for shares and warrants amounting to 19.9% of Sokoman’s outstanding shares in November 2017.

Later in the day on July 30, Sokoman raised $3 million through a non-brokered private placement. The placees are Eric Sprott, the investment fund Palisades Global and the digital advertising agency Venture Ad Network.

Most of the $3 million will be directed towards Sokoman’s second phase of drilling at Moosehead, which will concentrate on the newly identified zone and continue to explore the shallow mineralization of Moosehead’s Western trend.

Part of the financing will go to Sokoman’s other areas of focus — the Central Newfoundland gold project and the Clarks Brook gold project, also in Newfoundland.

The Central Newfoundland gold project consists of 220 mineral claims across three newly acquired project areas — East Alder, Crippleback Lake and Princess Lake — on the Cape Ray–Valentine Lake–Alder Zone structural trend.

Sokoman recently completed a second phase of drilling at the Clarks Brook gold project, highlighted by the intersection of a network of narrow pyritic quartz veinlets that returned 3.74 grams gold over 3.1 metres.

Sokoman’s announcement prompted a wave of acquisitions by other juniors in the Moosehead area.

On July 25, Tasca Resources (TSXV: TAC) bought the Beaverhead claims — 3.7 sq. km of contiguous land next to the northwest border of Sokoman’s Moosehead property. The claims lie on the same belt of Silurian volcanics, volcaniclastics and sediments rocks that Sokoman’s property covers. Tasca followed  up with the purchase of a 6 sq. km property east of the Beaverhead claims on Aug. 7. The company will proceed with soil samples and drilling on the property.

On August 7, RJK Explorations (TSXV: RJX.A) reported an acquisition of 208 claims covering 52 sq. km within the same belt. RJK’s new acquisition — the Moosehead Gold District project — will be bought from a private company for $100,000 and a 2% gross royalty on the property. RJK will raise $1 million through a non-brokered private placement to finance exploration on the property.

Also on Aug. 7, Sunvest Minerals (TSXV: SSS; US-OTC: QSGB) bought two claim blocks covering 42 sq. km near and on trend with Sokoman’s property. The same day, the company raised $1.5 million through a non-brokered private placement to finance first-phase exploration on its new ground.

The flurry of activity has the nearby town of Grand Falls-Windsor optimistic, said Gerald Thompson, executive director of the Exploits Regional Chamber of Commerce.

Grand Falls-Windsor was a paper industry town for almost 100 years until the paper company shut the mill down around the turn of the millennium, causing 1,300 people lost their jobs. Teck Resources’ nearby Duck Pond zinc-copper mine ran for 11 years after that, but closed in July 2015.

“Although the economy has been stable, we would certainly like mining activity to pick up around here,” Thompson said in an interview with The Northern Miner.

Moosehead isn’t the only area juniors have their eyes on. Marathon Gold’s (TSX: MOZ; US-OTC: MGDPF) Valentine Lake gold project is nearby, where reserves total 30.4 million tonnes grading 2 grams gold per tonne. A preliminary economic assessment released in May shows the capacity for annual production of 189,000 gold oz. for 11 years, resulting in a US$367-million net present value.

For the moment, Marathon is focused on further drilling on the property. On July 26, the company announced another positive drill result at Valentine Lake: 7.8 grams gold per tonne over 59 metres, including 57.7 grams gold per tonne over 5 metres.

There is also Vulcan Minerals’ (TSXV: VUL; US-OTC: VULMF) Lizard Pond gold project, 40 km south of Moosehead. Vulcan is taking a closer look at Lizard Pond based on Sokoman’s “bonanza-grade” drill intersection. The company seeks partners to option or joint venture more work on the property.