VIDEO: Sokoman Iron Corp (CVE:SIC) CEO on Moosehead Project’s Potential for “Bonanza Grades”
Sokoman Iron Corp (CVE:SIC) (OTCMKTS:GDNDF) (FRA:3PJ) CEO Tim Froude explains the dip in the company’s stock prices and shares details of its Phase II drilling program. Froude discusses Sokoman’s Clarks Brook project, a site with 24 grams per tonne of gold. Sokoman’s Moosehead project remains the company’s priority and is situated at the top of a gold mineralized epithermal system with the potential for what Froude calls “bonanza grades.” Froude updates viewers on the Iron Horse project and highlights the site’s value not just for iron ore, but for uranium and rare earth minerals as well.
James West: Hey, welcome back to Midas Letter Live. My guest in this segment is Tim Froude – he’s the CEO of Sokoman Iron Corp., trading on the TSX Venture under the symbol SIC. Tim, welcome back.
Tim Froude: Glad to be back, James.
James West: Tim, the project that you’ve launched a great drill program on now, and I guess you’re getting ready to launch Phase II, and you’ve had some tremendous results. The criticism that I’ve been receiving as a result of my enthusiastic accumulation of your stock at higher levels, is that, you know –
Tim Froude: Don’t put any pressure on me.
James West: No, well, exactly. But a lot of people were, you know, they’re saying, wow, what’s wrong with this company? I mean, the stock’s fallen. And I said, there’s nothing wrong with the company; it’s doing exactly what mining companies do after a drill program that’s had some success, the short term scalpers have come in and made their money, and now they’re leaving to find wherever the next sexy beast is.
So that all being said, tell me: I was also sort of disappointed in the reaction of the ultimate press release, because it didn’t have an effect at all, and anybody who would have juxtaposed that against the press releases previously, and from the previous results of Altius, would understand that hey, this is kind of a deposit that is starting to hang together in a lot of ways, with lots of sort of discrete little opportunities within it. And I guess that’s why our venerable old friend down the street, Mr. Eric Sprott, was excited enough to invest his own money in the deal and continues to be a supporting shareholder.
Tim Froude: Yeah, I agree. I mean, I think, you know, the market was probably expecting more off Hole 1. And I guess if that’s the criticism, you should never drill your best hole first, I guess, because it’s always a tough act to follow.
But you know, when we put that program together, I mean, we had a much smaller treasury, James. And you know, I had a plan: there were three objectives I wanted to, you know, see through with the first phase. One was to put one hole and one hole only, into the eastern trend; the rest would go towards the western trend, where there was numerous unexplained – not unexplained, but open-ended intercepts and room, actually, to expand on the results of the previous operators.
So we stuck to the plan. I mean, I didn’t know what was eventually going to happen in the following weeks in terms of monies coming in and stuff. But no, I mean, now that we’re ready to go to Phase II, obviously focus, priority one, is going back to the areas around hole 1801, for sure.
James West: So the eastern zone that yielded the 12 metres of 44.96 grams per tonne is going to be the principal focus of the next drill program, starting in the first week of October?
Tim Froude: That’s correct, yeah. We have permits for one drill now; because we expanded the program, it required a juggling of the permitting process. So we’re currently waiting for the permits for the second rig, but we’re on schedule to put the first rig on site and testing around Hole 1801 sometime in very early October, for sure.
James West: Sure. So how many holes are you going to drill in Phase 2?
Tim Froude: Well, I budgeted for 10,000 metres, and I guess the ultimate number of holes will obviously depend on the depth and the number of holes. And I mean, if we continue with success in the 1801 area, I mean, we’re just going to continue to drill holes there, right? So the exact number of holes is going to be difficult to predict, but I would suspect we’re going to be drilling at least 40 or 50 holes, you know, in total, right? That’s for the program, right?
James West: Sure. The other properties that you have in the portfolio are no slouches either, which I was pleased to learn yesterday when I was at the presentation.
Tim Froude: Well, yeah. I am particularly fond of Clarks Brook, which is actually, if you go immediately to the right or east of this photograph, you’ll, about 20 miles distant is our Clarks Brook project, which we drilled for the first time – not just we, but the first holes drilled on the property were actually in the fall of 2017. And basically we’re following up on some historical float, and it was very poor outcrop, again. Yeah, that’s the one – you see the cluster of large boulders, there? Well, they ran up to 24 grams per tonne, right? But it was never drilled. And we decided to take that project on in lieu of trenching on some of our earlier-stage projects, because we figured we get a bigger bang for our buck by digging a hole rather than digging a trench, sort of thing.
And we drilled seven holes, and all holes hit mineralization. And I just want to draw your attention to the northernmost hole there, which has the most widespread mineralization. Overall, the grades are modest – a gram over 13 metres – but we do get up to, we actually got VG in that hole as well, over a very narrow interval. But it’s a different system, James, than the Moosehead stuff. In my opinion, we’re actually looking at the top of an epithermal-type system here. Moosehead would be more of an orogenic, deeper-seated sort of roots to that system.
I think what we’re looking at here is the top of an epithermal system, and I wouldn’t be surprised, if we stepped back and drilled the hole down through the blue coloured areas there, those are magnetic low targets. And if you look, most, if not all, of our drill intersections are actually on or within or in close proximity to the mag low.
I like our chances here of just drilling down into the system to see what’s at depth, because if we’re looking at the top of a gold mineralized epithermal system, you know, I’d like to think that at some reasonable depth we could be getting down into potentially bonanza grades, or certainly higher grades, right?
And as well, down at the bottom of the slide there, you can see where that blue colour wraps around, there? You know, that’s probably a fold, and fold hinges are very good places, you know, for thickening and improving grades of mineralization. So it won’t be a distraction for us, but it’s certainly a project that we could, you know, certainly –
James West: Are you going to drill some of Phase II in here?
Tim Froude: Well, if Moosehead allows us, right? Because it’s still our flagship property.
James West: How far is this from Moosehead?
Tim Froude: Well, in a straight line, it’s about 30 kilometres, about 20 miles. But to drive to it, it’s probably about an hour’s drive. But again, on very well used roads. You can park a pickup truck, you know, within 100 metres of these collars, so I mean, again, not a difficult project to access or work at all.
James West: Wow, that’s great. And then you’ve got also the Iron Horse project; this was actually the namesake of the company originally, wasn’t it?
Tim Froude: Yeah, well, we started life as a gold company and then when the iron ore market took off six or seven years ago, we decided to take a shot, and we actually acquired a property in an under-explored part of the trough, because there wasn’t any room yet in the established parts, you know, where the producing mines are in Labrador. So we acquired, we got this project and drilled – actually, these are the only holes drilled in this area, and we were quite pleased to discover, you know, very significant mineralization, including, you know, up to 354 metres of just about 20 percent.
Now, it’s obviously taconite; it’s not the DSO, or the jewel of the iron ore business. But you know, there’s probably, you know, a very significant tonnage of iron ore here that just needs to be drilled off. You know, it’s in good standing, it’s not costing us anything to hold it, and as well, areas to the south of where we’ve drilled for iron ore, we’re also seeing interesting levels of uranium and rare earth minerals as well. So one of these projects where you pick a commodity, sort of thing.
James West: Sure, an embarrassment of riches. I like those ones.
Tim Froude: But anyway, it’s, like I said, it’s still in our portfolio, and if we can monetize or move it at some point, we certainly will.
James West: Okay. So then, the focus remains the gold project at Moosehead?
Tim Froude: Yeah.
James West: Okay, excellent. All right, and so, with the drill program starting in October, first results probably by the beginning of November-ish?
Tim Froude: That might be a bit soon. It all depends. I mean, it’s always hard to predict these things, and I guess a lot of it will depend on probably what we get, as well. You know, I mean, if we end up, you know, with a bunch of holes like 1801, I don’t think anybody would be very happy if we sat on those for a while. So you know, we’ll probably release results periodically, but just the timetable might be difficult to pin down right now.
James West: Sure. All right, well, that’s a great update, Tim. We’re going to continue to follow with interest. Thanks very much for joining me today.
Tim Froude: Well, thank you for having me again, James.
More Great Mining Content
Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.
Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.
Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.