SOKOMAN IRON RECEIVES EXPLORATION APPROVAL FOR PHASE I DRILLING AT MOOSEHEAD GOLD PROJECT, CENTRAL NEWFOUNDLAND
Puslinch, ON, May 30, 2018 – Sokoman Iron Corp. (‘Sokoman‘ or ’the Company‘) (TSX-V: SIC) is pleased to announce it has received Exploration Approval from the provincial Department of Natural Resources, and can now proceed with the proposed 2,000-metre Phase I diamond drill program at the Moosehead Gold project in central Newfoundland. A crew has been mobilized and will begin site preparations immediately with first core expected in about 2 weeks.
The program will have three main objectives (see May 25, 2018 News Release): focusing on the near surface (less than 50 m deep) high-grade historical intercepts* in the Western Trend including historical results of 27.74 g/t Au over 5.58 m starting at 33.92 m in MH-01-13 (including 96.71 g/t Au over 1.50 m); high-grade historical intercepts in the Eastern Trend (53.36 g/t Au over 2.35 m starting at 255.36 m including 277.96 g/t Au over 0.45 m), as well as selected reconnaissance targets defined by anomalous soil geochemistry (values ranging from less than detection to 79 ppb Au) and unsourced float (sample 12159 that assayed 180 g/t Au) lying to the north and east of the main zone of mineralization and believed to indicate a source(s) independent of the main zone. (Note: core, soil and rock sample values stated are historical in nature and not verified by Sokoman Iron.).
The Phase I program will follow the recommendations proposed by Minorex Consulting Limited (‘Minorex’) of Aldergrove, B.C. who recently provided an updated and revised model of the Moosehead mineralization. A total of 20 holes has been proposed of which 11 holes (1,310 m) are considered first priority. The remaining 690 metres will be distributed among the second priority and reconnaissance targets. The distribution of the first priority holes was also designed with consideration for any future resource estimates that may be completed at Moosehead.
Timothy Froude, P. Geo., Interim CEO states: “We are anxious to get the program started at Moosehead, particularly given the good grades returned historically. We are quite optimistic that the forthcoming program will bring significant results confirming the potential of Moosehead.”
The Moosehead project is host to widespread, orogenic lode gold mineralization that has been intersected over a 2-km long by 500 m wide zone, locally with very high gold grades as demonstrated by historical drilling programs. The project is strategically located in north-central Newfoundland with the TransCanada Highway crossing the northern portion of the property, and Route 360 lying 1.2 km northwest of most previous drilling. The town of Grand Falls-Windsor lies 20 km west of the property, and the town of Gander is located 75 km to the east. The deep water port of Botwood lies 17 km north of the property. In addition, secondary roads and drill trails offer excellent access to virtually the entire property. Moosehead lies 33 km northwest of Sokoman’s Clarks Brook Gold project where assays from the recently completed Phase II drilling program (594 m) successfully extended the known mineralized trend and intersected a second, subparallel zone of gold mineralization returning 3.74 g/t gold over 3.10 m including 14.73 g/t gold over 0.60 m (April 4, 2018 News Release).
On November 10, 2017, Altius Resources Inc. and Sokoman Iron Corp. entered into a definitive agreement whereby Sokoman has the exclusive right to acquire a 100% interest (subject to an existing 0.5% NSR royalty in Altius Resources Inc’s high-grade Moosehead Gold Project in central Newfoundland (the ‘Option’). On March 23, 2018, Sokoman announced that the TSX Venture Exchange had accepted for filing all of the documents in regard to the Moosehead property transaction as previously announced on November 9, 2017. Sokoman has also issued the share payment and related warrant certificate to Altius Minerals Inc. (‘Altius’) consisting of 7,754,371 common shares and 1,428,571 share purchase warrants. Upon closing, Altius will hold a total of 9,182,942 common shares of Sokoman Iron Corp. which represents 19.9% of the outstanding shares of Sokoman at the time of the closing of Sokoman’s November 2017 financing. The issued share purchase warrants have a strike price of 5 cents good for three years after the date of the closing.
*Note: Historical drill results reported in this release were from saw cut NQ sized drill core with analysis carried out by either ALS Chemex in Vancouver, B.C., XRAL Laboratories in Don Mills, ON, or, Chimitec Laboratories in Val d’Or, QC. Vein material was analyzed by a 1000 gram metallic screen preparation and fire assay analysis, with standard fire assay for the remaining samples. A 32 element ICP scan was also completed on all samples. The work is historical in nature and non NI 43-101 compliant and Sokoman has not yet independently verified the data. True width of selected intercepts may vary between 30-100% of the reported interval.
This news release has been reviewed and approved by Timothy Froude, P. Geo., a “Qualified Person” under National Instrument 43-101 and Interim CEO for Sokoman Iron Corp.
About Sokoman Iron Corp.
Sokoman Iron Corp. (TSXV: SIC) is a discovery-focused company with projects in Newfoundland & Labrador, Canada. The Company’s primary focus is its portfolio of gold projects in Central Newfoundland. The Company also has interests in early-stage gold, base-metal and antimony projects in Newfoundland, as well as a 100% interest in the Iron Horse (Fe) project in Western Labrador.
Timothy Froude, P. Geo., Interim CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Investors are cautioned that trading in the securities of the Corporation should be considered highly speculative. Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Sokoman Iron Corp. will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Sokoman Iron Corp.