Sokoman Iron (TSXV: SIC) announced that it now owns a 100% interest in the Moosehead gold property, located in central Newfoundland, Canada.
In a press release, Sokoman said, as required in the option agreement it signed with Altius Resources (TSX: ALS), the company invested $500,000 in exploration expenditures as an operator within the first year of the closing of the deal.
“Our exploration activities to date include some 50 diamond drill holes (~9,500 m) that are being incorporated, along with historic assays, into a 3D software program to view and model the mineralized zones,” Tim Froude, President and CEO of Sokoman, said in the media statement. “Recently completed Phase 2 drilling has returned multiple high-grade intersections including 24.90 m grading 33.56 grams per tonne gold from the newly discovered eastern trend shear zone. 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.”
Altius, and a private, arms-length third party, will retain a combined 2% NSR royalty and certain preferential rights on any future royalties or streams granted on the Moosehead property and will be granted a pro rata right to participate in future equity financings of Sokoman for three years.
The 24.5-square-kilometre project, previously under an inactive JV with Agnico Eagle, was held by Altius for more than a decade. According to its previous owner, the last significant work program on the property was in 2004.
Corporate information states that Moosehead features high-grade gold mineralization with drill intersections of up to 170.3 g/t Au over 1.53 metres as well as widespread mineralized quartz boulders grading up to 442 g/t Au in grab samples throughout the terrain.