Metals Update 20/07/2021

Sokoman Minerals talks Newfoundland gold projects

Sokoman Minerals Corp. has provided an exploration update on its 100-per-cent-owned projects as well as joint venture projects with Benton Resources Inc. in Newfoundland.

Highlights

  • Moosehead: close to 20,000 metres completed with two drill rigs; third drill rig expected in two to three weeks for the barge-based program; testing Footwall splay/Eastern trend, South Pond and the new 75 zone.
  • Fleur de Lys: continuing till sampling program; multiple samples submitted for gold grain and heavy mineral analysis with initial results expected in two to three weeks.
  • Grey River joint venture: sampling in the vicinity of the historical 225-gram-per-tonne gold sample site resulted in the identification of visible gold in a portion of the mineralized zone; samples submitted for assays; high-resolution airborne geophysical survey to begin shortly.
  • Golden Hope JV: initial reconnaissance mission completed; rock samples, stream sediment and C-horizon till samples submitted for assays; in the process of completing high-resolution airborne geophysical survey.
  • Kepenkeck JV: completed a high-resolution airborne geophysical survey; a prospecting program has begun; a detailed soil sampling program to commence shortly; first assay results from sampling deemed very encouraging.

Moosehead project

phase 6 drilling program is continuing at Moosehead with two rigs. While there has been a delay in getting a third drill rig on site due to the current shortage of the drill crew experienced by Sokoman’s preferred drilling contractor which knows the property area well, Sokoman has recently been advised that the third rig is expected to join the program in two to three weeks. The third rig will now be designated for the barge-based program which is awaiting final approval from the Department of Environment. The company is looking at adding a fourth drill rig as soon as possible and will keep investors posted on the progress made in that regard.

Once the third rig is on site, Sokoman plans to be alternating the initial two drills in order to test regional targets that could easily lead to other discoveries in addition to extending currently known zones.

Just under 20,000 m of the proposed 50,000 m phase 6 program has been completed and multiple strong intersections have been reported from this phase including the holes summarized as follows:

MH-21-115 (Footwall splay-Eastern trend) — 4.60 m at 47.20 g/t Au; and 8.10 m at 68.25 g/t Au;

MH-21-163 (Footwall splay-Eastern trend) — 18.90 m at 13.09 g/t Au;

MH-21-141 (South Pond zone 1) — 4.20 m at 64 g/t Au;

MH-21-123 (South Pond zone 1) — five m at 26.87 g/t Au.

Note: reported lengths are core lengths and are believed to be 70 per cent to 85 per cent of true thickness

The barge program could entail as much as 5,000 to 10,000 m, depending on success and depths, to target the Footwall splay and as much of the Eastern trend that can be accessed.

Drilling will continue at the South Pond target as well as on the nearby 75 zone, which is an open-ended mineralized block lying 100 m northeast of the South Pond target, approximately halfway to the Eastern trend, and which delivered MH-19-75 (5.80 m of 6.93 g/t Au, including a visible-gold-bearing vein grading 32.99 g/t Au over 0.80 m) and remains open. The 75 zone drilling will help determine whether it is linked to any known zone or is a new splay. Currently a four-to-six-hole program is focused on this area. Once completed, the drill will be assigned to test some of the high-priority geochemical and geophysical targets elsewhere on the property while awaiting assays.

Fleur de Lys project

The property-scale till sampling program is approximately 40 per cent complete with 357 samples submitted for gold grain and heavy mineral analysis at Overburden Drilling Management (ODM) in Ottawa. The sample collection is being supervised by ODM utilizing contract crews. Results from the early sampling are expected in the next two to three weeks. Prospecting has been continuing concurrent with the till sampling, and approximately 40 rock samples have been submitted for assay, many with disseminated pyrite and chalcopyrite, minerals linked to several gold-enriched deposits in the United Kingdom, including the six-million-ounce Curraghinalt deposit in Northern Ireland, with which the Fleur de Lys project shares many characteristics.

Grey River Sokoman/Benton JV project

Airborne geophysical surveying totalling 1,099 line kilometres is about to begin at the 324 claim (8,100 hectares — 81 square kilometres) Grey River JV in southern Newfoundland and will consist of a heliborne high-resolution magnetic and matrix digital VLF-EM (very-low-frequency electromagnetic) survey flown by Terraquest Ltd. The results of the survey will help define structural targets that may be associated with the gold mineralization at Grey River. The property is targeting high-grade gold mineralization similar to that currently being mined at Pogo, Alaska, with published reserves of 6.9 million ounces at 9.4 g/t Au, as well as other styles of gold mineralization including shear zone and intrusion-related gold.

Management of Sokoman and Benton has visited the Grey River and the Golden Hope properties to establish priorities and to engage in sampling as many areas of known mineralization. The visit to Grey River was extremely successful in that sampling in the vicinity of the historical 225 g/t Au sample site resulted in the identification of visible gold in a portion of the mineralized zone. In addition, prospecting in the immediate area identified several other mineralized horizons that did not appear to be previously sampled. Assays are pending from a suite of samples collected from several locations on the property. The historical Quartz zone reported by previous workers is impressive and extends for several kilometres in an east-west direction (photos can be viewed on Sokoman’s website under the Grey River project tab) and is up to 200 to 300 metres in width locally. Multiple gold showings are known along most of its length ranging from 100 to 200 parts per billion Au to 225 g/t Au, but no drilling has been carried out at any of the known gold occurrences. The companies have applied for drilling permits which will target these zones.

Golden Hope Sokoman/Benton JV project

Exploration has also commenced on the 3,176-claim (79,400 hectares — 794 square kilometres) Golden Hope property in southwestern Newfoundland, including a 5,709-line-kilometre heliborne high-resolution aeromagnetic and matrix digital VLF-EM survey being flown by Terraquest. The survey will help provide an overall structural picture of the property and identify extensions of known gold-bearing structures as well as any previously unrecognized structures on the property. An initial reconnaissance mission at Golden Hope was completed earlier this month by management of Sokoman and Benton in order to get a firsthand look at the ground and to obtain samples in as many areas as possible (photos can be viewed on Sokoman’s website under the Golden Hope project tab). Mineralization observed included multiple occurrences of structurally controlled quartz veins with variable amounts of pyrite, as well as a previously unknown zone of locally significant arsenopyrite and pyrite (as stringers and veinlets comprising up to 10 per cent of rock volume), that was noted to be several dozen metres in thickness and of unknown strike length. Over all, approximately 50 rock samples as well as seven stream sediment and four C-horizon till samples, were collected and submitted for assaying/processing.

Kepenkeck Sokoman/Benton Resources JV project

The company has been informed by joint venture partner Benton that a heliborne high-resolution aeromagnetic and matrix digital VLF-EM survey totalling 1,984 line kilometres has been flown by Terraquest. A prospecting program has begun and a detailed soil sampling program will commence shortly. The Kepenkeck property lies in east-central Newfoundland, along trend from Canstar Resources’ Golden Baie project and immediately east of New Found Gold’s Queensway project. The target is high grade and quartz veining, hosted in graphitic shales similar to that of the New Found Gold property.

The companies have received the first assay results from 24 samples submitted. Gold grading from greater than five ppb to 5,340 ppb has been obtained from localized float and outcrops. The companies are very encouraged by these early results and follow-up has been planned to further these discoveries.

Providence Gold samples 10 g/t Au at Bonita

Providence Gold Mines Inc. has found a rock sample across the creek from the Bonita mine, which returned 10 grams per tonne gold. Further work is now underway to locate the source.

A carbonate- sericite alteration bloom and vein quartz has been discovered on the north side of Duckwall Creek and is the potential twin of the Bonita Gold ore shoot. A high-grade selected sample returned > 45gm/tonne Au from a small rock pile well above the flood plane on this north side. The northern projected strike extension of the Bonita Lode is located in a recessive topographic feature which forms the steep northern side of this drainage extending to the ridge top.

The rock samples were transported and tested by Bureau Veritas Minerals of Vancouver, B.C. using 30 g lead collection fire assay fusion for total sample digestion with AA finish. As the sample returned Au >10 ppm (10gm Au) it is being further analyzed by gravimetric method.

In addition, the current field program has made another new discovery of vein outcrop. During a traverse down slope from the McCarthy mine the Lode zone steeply dipping NE and is approximately one metre in true width. The zone appears to be along strike between the McCarthy and the Fairplay mines. A channel sample will be shipped for assay to Bureau Veritas this week.