Sokoman Iron Corp (CVE:SIC) (OTCMKTS:SICNF) (FRA:3PJ) CEO Tim Froude provides an update on the company’s Phase 2 summer drilling program at its flagship Moosehead project site. Sokoman is striving to finish its proposed 10,000 metre drilling program before the end of the year and has completed 25 holes and taken over 1000 samples. The company is currently waiting for sample results to return, but Froude hopes to have additional updates on Phase 2 results before Christmas. Phase 3 drilling at the site will commence in January, as the infrastructure at the Moosehead site allows for year round drilling. While Sokoman’s stock is liquid, it has been impacted by the general malaise afflicting the mining industry despite the value of the Moosehead project.
Brandon Colwell: And we’re joining today, for a second or third time now…
Tim Froude: Third time, actually.
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Brandon Colwell: Third time, Tim Froude, CEO of Sokoman. Welcome.
Tim Froude: Thank you for having me, Brandon.
B.S: Absolutely. So a lot has been going on over the summer; obviously that’s the main drilling time. Do you have an update for shareholders?
Tim Froude: Yeah, well, we’re right in the midst of Phase 2. Obviously we had a very successful Phase 1 with a significant discovery hole, 1801, and we’re trying our best to finish the 10,000 metres that we proposed for Phase 3. I think it’ll be a little tough to get that done within the calendar year, given that the lab will shut down before that, and we’ve got to make sure that we’ve got everything that we possibly can that’s going to be sampled and assayed in the lab. But we’ve got about 25 holes finished right now, and over 1000 samples waiting for results to come back, and that doesn’t count, obviously, what we’ve already released.
So it’s going to be a busy time and we hope to have at least one news release prior to everything shutting down for the Christmas period.
Brandon Colwell: Yeah, we were talking just before we went live with this, talking about the fact that I had asked were you still drilling, and because being in Newfoundland and obviously not being in the mountains and Yukon and upper BC, you’re able to still be drilling at this point, where many other people are starting to shut down.
Tim Froude: Absolutely. Obviously, the holiday period is a time when everybody basically shuts down for a few weeks, and we’re not an exception; but you’re correct. Logistically, Moosehead is a dream. The Trans-Canada Highway cuts through a part of it, we’ve got lots of access internally from old drill roads and old logging roads, and winters aren’t what they used to be. So we’ll be able to drill well into December, at that point, shut down, try and get everything we can get as possible into the lab for assay, and, yeah, and then look to a January start up once there’s sufficient ice conditions to basically start Phase 3. Because that’ll be a strong component to moving forward, given that the eastern trend actually sits largely beneath a small lake that would, you know provided excellent access from drilling it from above, which is now basically where the focus will be for the eastern trend moving forward.
Brandon Colwell: So you’re talking about Phase 3, but recently, over the last few days, I believe it was, actually, Phase 2 just came out and you were going through some drill results there. Are you able to speak about that? Are 4you excited about it, does it change your game plan/
Tim Froude: Well, actually, all of the above. Phase2 we started with a pretty good hole, actually 24.9 metres at 33 grams, which was a really good follow up to 1801. We’re starting to get a better picture now of the structure and actually the model we were thinking was in play for the mineralization of the eastern trend has actually changed, to the point where now it’s become clear to us that you know, the body of rock that’s mineralized is actually dipping in a different direction than we had anticipated after we drilled 1801.
To the point where, as I mentioned earlier, Phase 3 will now be focused, basically it’s going to be an ice4-platofform based program to test what looks to be a more flatter-dipping, north-trending zone, more effectively and more cost effectively form the lake. So then we’re still formulating that plan; e don’t have the fixed number of metres.
But Phase 3, if you want to call it that, ill include whatever we don’t get drilled in the 100000 metres as proposed in Phase 3. It doesn’t 4look like we’re going to get 10,000 metres, but that’s fine; we’re funded for that. So that meterage to whatever we determine to be appropriate for Phase 3, and then looking forward hopefully to a startup in late January after we get all the results back.
Permits of course, we’re permitting drilling on the ice, and that’ll take a little bit longer, and once the Christmas period everything just kind of slows down a little bit. But we’re really excited about Phase 3. We’re getting more excited for each progressive phase, which I guess is a good sign.
Brandon Colwell: Yeah, and that’s interesting. So you will be continuing drilling throughout the year; obviously Christmas break, as you said, everybody’s with the family, you take a little bit of a break, the labs are down and all of that as well. But you will be drilling in January moving forward. Was that always the plan of going all year round, or is it because this new area that you’re going into gives you a new advantage of being able to drill? Or was the that game plan the entire time?
Tim Froude: No, and again, I’ll speak to the logistics of the property. I mean, you can pretty well drill year-round; obviously there’s periods like, when, Spring break-up is probably the wort time, and the longest period of time when drilling is not really effective just based on the conditions for the roads and things, but you know, the Christmas period as well is another time.
But it was always our plan, basically, to just keep building on the results, keep moving ahead, keep hitting the zones, and as well, we still have4, in addition to the high grade at the eastern trend, we still have lots of isolated other targets that 4still require testing, and will be part of Phase 3 moving forward, as well.
Brandon Colwell: Very nice. I want to switch gears more so to the stock market. The stock market for mining has been rather bleak, in the sense that we’re having news come out for different companies and it doesn’t seem to be any legs in there. I believe the day of the news release, you guys had record volume in there I could stand corrected, but I think that as the most volume your stock has seen sine its inception, but there was also a sell-off from that. Like what are the different reasons why that would happen, or is it an industry-wide thing? Like, what are your thoughts on that?
Tim Froude: Well yeah, it’s a bit frustrating, especially if you’re a shareholder, you know? And you bought, you know, at or around a time of the release of the first phases of results. I mean, we had some pretty incredible trading days, north of 20 million shares on multiple days, which is, you know, which is quite remarkable.
I guess if you’re looking to get in and get out of a stock quickly it’s your treat, but I don’t know. I guess we’re luckier than a lot of companies in that we are, you know, a liquid stock, I guess, and we don’t trade by appointment. I can’t really explain why the stock is sitting back at its current levels other than just a general malaise. Even back home, I mean, we have a very good growing resource marathon Gold – 4 million ounces, and they’re $.60-odd cents. You know, I mean, I don’t know what’s it at today, but you know, severely undervalued. But I mean, you know, when you see instances like that, I guess you just have to say well, it’s just the way things are in the market these days. We just have to do our job, basically, you know. We’re financed, we’re going to move forward, keep producing results, keep moving the pegs further, and at some point the stock will hopefully realize its potential.
Brandon Colwell: Yeah, and again, I do see a broader pattern especially across the mining stocks throughout this fall and not many have gained traction; when they did, they were traded, they weren’t invested, and you could really see that right across the board.
With your specific stock, when it comes to different options and different warrants that were out there, invested, and you could really see that right across the board.
With your specific stock, when it come to different warrants and different options that were out there, were there any that were in the money before and now is possibly into this as well? Or do you have much more still outstanding, or are you ready 4for the next level?
Tim Froude: Good question. Yeah, we did see the exercise of somewhere between 13 and 14 million warrants after the first run-up, which brought, you know, a nice chunk of money, over 800,000, in fact, to our treasury.
There’s still about that many left at prices between $0.05 and $0.09; we’ve seen a couple of small, you know exercises, but certainly nothing to explain that there’s cheap paper, you know, suddenly flooding on the market. And I would assume the 4ones that were exercised have been traded already.
But you know, like I said, we’ve always been a very liquid stock. Like I said, which I guess is good in some respects, and if you’re a trader, it’s probably ideal, and maybe that’s what’s happening, right?
Brandon Colwell: Yeah, traders have really – so, just being in our different community and chat rooms and talking with a lot of people who are traders, they’ve traded the mining stocks very, very well. So it’s perfect for a trader’s rowboat. You also want to be able to have a world where investors get a little bit from there as well, and I think right now there’s a lot of concerns in North America – it’s market-wise, you know, it’s not just your company, it’s not just gold, its not just mining, I think it’s very broad right now. A lot of people are really trying to find, okay, when are things going to find their footing in the markets? But it never lasts, though. There’s always – it’s called a cycle for a reason. You have your peaks and 4you have 4your troughs.
Tim Froude: Yeah.
Brandon Colwell: A lot of people do believe right now that gold and mining stocks and exploration are in a trough, and we’re waiting to see what’s going to ignite it.
Tim Froude: Well I think, I was speaking on that very topic this morning with some people, and basically interest rates, you know4, have to start to come down; I think that’s been demonstrated over the years that with flatter interest rates, you know, it’s more attractive for gold.
And obviously, the US dollar has a very big role to play. So you know, there are several factors at it, but you know, the investment community has changed drastically, you know, in the past even recently, like five or ten years, in terms of the mom and ops that were out there and used to drive the junior markets, you know, they just don’t seem to be there anymore. It’s all largely block trades and stuff that, you know, we can’t control. And people are trading for a penny or two pennies and if you do that several tines a day, you can make a few thousand bucks sitting at home on your couch, I guess , you know, that’s what you’re going to do.
But at some point, the story will, you know, get out, and obviously the next level for us is to attract the attention of maybe some bigger companies and move the stock forward with support from strong hands in the industry.
Brandon Colwell: Yeah, and you’ll need – and I’m sure that they’re starting 4to look around and, I mean, I speak to people all the time with their different investments and they’re definitely looking at mining stocks and at gold plays and all that, and preparing an entry but it seems to be the consensus is that preparation is still preparation; they’re still really waiting to see what the market will do, but it sounds like you’ve got a couple of holes still to come out; assays, hopefully before Christmas break, before the labs go on their, I think you said, two -week break?
Tim Froude: Yeah, they’re closed for the whole Christmas period, starting around the 20th of December through to the New Year. So yeah, we want to make sure we’ve got as much as we can, you know, within the system prior to that, and then hopefully within a couple of weeks of that, after Christmas, we’ll be either in receipt of all of our results or certainly the ones that are critical to interpreting the story, and start as soon as permits and ice cogitations allow.
So it’s going to be a great program. I’m really excited about it.
Brandon Colwell: Well, absolutely. I appreciate your time coming on the show, I appreciate you coming, obviously the investors in your company, but also people who may not have heard you before, being with a final look of more about you. So always appreciative of your time, and look forward to having you here again in the near future.
Tim Froude: Thanks, Brandon.
Brandon Colwell: Absolutely. Take care.