Sokoman’s Moosehead Project in Newfoundland. Source: Sokoman Minerals Corp.
Sokoman Minerals Corp. [SIC-TSXV; SICNF-OTC] shares were active Tuesday April 16 on news that the junior has applied for permits to drill on a Newfoundland property that it has optioned from Metals Creek Resources Corp. [MEK-TSXV; MCREF-OTC].
Metals Creek said it has been advised that Sokoman is planning to drill this year on the Clarks Brook epithermal gold property located 35 km southeast of Sokoman’s flagship Moosehead Project.
Sokoman was active on the news; however, its shares dropped 42% or $0.08 to 11 cents on volume of over 6.6 million. The shares are trading in a 52-week range of $0.03 and 58 cents.
Metals Creek was unchanged at 3.5 cents to trade in a 52-week range of 3.5 cents and 10.5 cents.
Last summer (2018), drilling results from the Moosehead Project sent Sokoman shares soaring from $0.05 to 50 cents. That was after the first Moosehead drill hole (MH-18-01) returned 11.9 metres of 44.96 g/t gold from 109 to 120.9 metres.
Under the option agreement with Metals Creek, Sokoman can earn a 75% stake at Clarks Brook by making $45,000 in cash payments and issuing 3 million shares. It must also spend $800,000 on exploration within three years, including $100,000 by the first anniversary of the agreement.
Sokoman has the option to increase its interest to 100% by paying out another $100,000 and delivering an additional 2 million shares within 60 days of the third anniversary of the agreement.
Metals Creek said Sokoman has applied to begin drilling by the second quarter of 2019 at Clarks Brook. “This will be a small program, under 2,000 metres, testing below previous gold intercepts to see if higher grade mineralization, that often lies deeper in classic epithermal environments, exists,” Metals Creek said in a press release Tuesday.
“This exploration will be completed before the Phase 4 drilling at Moosehead,” Metals Creek said.
In a February 1, 2019 news release, Sokoman said it now owns a 100% interest in the Moosehead property after meeting the terms of an option agreement with Altius Minerals Corp. [ALS-TSX; ATUSF-OTCQX], which owns 9.2 million shares of Sokoman, plus 1,800,000 warrants and a 1.5% NSR royalty on the Moosehead Project.
Sokoman said it had incurred the required minimum exploration spend of $500,000 on the Moosehead Project, which consists of 98 claims, encompassing 24.5 km2. Sokoman said its activities to date at Moosehead include 50 diamond drill holes (9,500 metres) that are being incorporated, along with historic assays into a 3D software program to view and model the mineralized zones.
Phase 3 diamond drilling has begun and will focus on the Eastern Trend high grade shear zone as well as selected high priority targets elsewhere on the property.