Sokoman Iron: Junior Exploration’s New ‘Golden’ Hope

Palisade Research August 15, 2018
Category: Research

Share Price: C$0.38

Shares Outstanding: 78.4M*

Market Capitalization: C$24.4M*

Cash: C$3.0M*

Total Liabilities: C$0.1M

*Post-financing

 

Sokoman Iron (CVE:SIC, FRA:3PJ1, OTCMKTS:GDNDF) is the new ‘sweet-heart’ in the junior gold market.

The stock exploded after the announcement of a new – and amazing – gold discovery.

11.9 metres of 44.96 g/t Au at its flagship project – Moosehead.

Sokoman acquired the option to earn a 100% interest of the Moosehead gold property from Newfoundland staple – Altius Resources.

The terms were reasonable: 7.8 million shares, 1.4 million warrants and $500,000 in exploration expenditures within 12 months.

And with this deal, Altius becomes a strong partner – currently owning roughly 15% of the shares outstanding.

But let’s focus on why this gold property is so exciting and sent shares soaring. . .

The Moosehead Gold Property

Newfoundland – historically known for base metals instead of precious metals – is in the midst of a ‘gold rush’.

Kickstarted by Marathon Gold’s 3.2-million-ounce Valentine Lake project – almost all the land which lies on the structural corridor has been staked – including Sokoman’s Moosehead project.

Check it out. . .

The Sokoman Moosehead Project and Marathon Gold’s Valentine Lake Project are both located along the Dog Bay Line (DBL) – a significant suture formed at the closing of the Iapetus Ocean.

Along the same structure – across the Atlantic Ocean – is Dalradian Resources’ Curraghinalt deposit – which’s a high-grade gold system. Curraghinalt currently has 6 million ounces and was just recently acquired for C$537 million.

That’s how massive this structure is.

And there’s gold being found all along it – especially today in Newfoundland. . .

Current Sokoman Iron CEO – Timothy Froude – has always had his eyes set on this district.

In fact – Tim grew up just 25 kilometers away from the Moosehead project. He even worked at Altius Resources for 20 years – spotting old drill collars.

It seemed like fate would have it for him to end up acquiring the Moosehead property – to explore with his own team.

Moosehead was always a promising project. . .

It features high-grade gold mineralization – with drill intersections of up to 170.3 g/t Au over 1.53 metres.  As well as wide-spread mineralized quartz boulders grading up to 442 g/t Au in grab samples throughout the area.

But historic drilling on the property was always shallow – less than 125 metres below surface.

And the only deep hole drilled ended up finding 278 g/t Au over 0.50 metres.

You can see how much potential there is if you just drill deeper.

The Moosehead “eureka!” moment happened in 2015. . .

Before then, trenching was unable to reach the bedrock, thus there wasn’t enough data on structure and geometry.

But a detailed structural study was undertaken on the 2015 trenched exposure – as well as historic drill core.

Then, in 2016, a borehole televiewer survey was conducted on select drill holes.

This work has significantly increased the understanding of the local geology, vein geometry, and structural controls on the gold mineralization at Moosehead.

Before this work, it was always thought that the main high-grade veins were controlled by an North-South trending fault system – when in fact it was actually controlled by an East-West to WNW-ESE, north-dipping fault system.

To date, only a small number of the historic drill holes were drilled to optimally test the E-W striking, north-dipping, gold bearing structures. . .

The Big Discovery

Prior to Sokoman’s campaign, a total of 111 diamond drill-holes were explored at Moosehead. And of those, only 22 reached a depth greater than 100 meters, and only one greater than 200 meters (as the chart showed above).

Yet – the only “deep hole” intersected 278 g/t Au over 0.45 m at a hole depth of 257 meters. . .

Sokoman’s big hit, Hole MH-18-01 – 11.9 metres of 44.96 g/t Au – was drilled to test the up-dip potential of this ‘deep hole’ – or to test the Eastern trend intercept ~50 metres vertically above the historical intercept.

The Eastern trend’s located ~250 metres east of the centre at the Western trend.

The high-grade vein discovery lies between the two trends.

Sokoman’s completed their phase-1 drill program, which consisted of a total of 1,970.5 metres in 15 holes.

Only one hole was designed to expand upon the Altius drilled ‘deep hole’ – while the others were drilled to expand the Western trend.

The company’s now currently waiting for the assay results.

Enter Eric Sprott

Palisade Global Investments has been a long-time supporter of Sokoman Iron. . .

And when Hole MH-18-01 crossed the newswire – we knew immediately this was the kind of deal that billionaire Eric Sprott – Chairman of Sprott Inc – would want to see. Especially with the geological similarities between the Moosehead project and Kirkland Lake Gold’s Fosterville project.

After a phone call and in-person meeting – Eric was writing a check to Sokoman Iron for $2 million.

And the markets noticed this. . .

A surge of buying comes after Eric Sprott invests in a company.

Need we remind you of what happened with Novo Resources. . .

And to a lesser extent – Garibaldi Resources. . .

Will there be a sell-off? Probably. But Eric will keep buying to keep the shorts at bay.

Will Sokoman be another 955% or 2,600% gain?

It’s shaping up to be. The gold markets starved for meaningful discoveries – and Sokoman Iron has just that.

Back up the truck and get ready for Phase 2 – which will certainly centre around Hole MH-18-01.

And what else’s hidden around Moosehead.

 

Palisade Global Investments Limited holds shares of Sokoman Iron. We receive either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. Information contained in this report’s from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this report are those of Palisade Global Investments and are subject to change without notice. The information in this report may become outdated and there is no obligation to update any such information. Do your own due diligence.

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