Sokomon Iron - Moosehead Gold Property (NL, Canada)
In April 2018 Altius formally dealt the Moosehead gold property to Sokomon Iron Corp. ("Sokomon) and as consideration for the option, Sokoman issued 7,753,571 shares to Altius bringing Altius total shareholding in Sokomon to 19.9% of its issued and outstanding common shares (9,182,142). Sokoman is committed to fund a minimum of $500,000 exploration program in teh next 12 months. Altius will retain a 1.5-per-cent net smelter return 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 Moosehead gold property is optimally located in a road accessible region of central Newfoundland and has been held in whole, or in part, by Altius for more than a decade. The project was subject of a “inactive” JV with Agnico Eagle (2001-2014) until October 2014 (the last significant work program on the property was in 2004). The 24.5km2 project is now 100% held by Altius and features high grade gold mineralization with drill intersections of up to 170.3 g/t Au over 1.53 metres as well as wide spread mineralized quartz boulders grading up to 442 g/t Au in grab samples throughout the property.
Historic drilling on the property was largely restricted to vertical depths of less than 125 metres below surface, and the only ‘deep hole’ intersected 278 g/t Au over 0.50 metres at a hole depth of 257 metres. Highlights of the drilling includes:
|Significant Gold Intercepts|
|MH-01-13:||96.7 g/t over 1.5 m at 38.0 m|
|4.9 g/t over 0.6 m at 48.1 m|
|MH-01-19:||18.3 g/t over 1.2 m at 8.2 m|
|MH-01-23:||13.4 g/t over 1.0 m at 14.2 m|
|413.6 g/t over 0.6 m at 15.1 m|
|MH-02-09:||222.8 g/t over 0.2 m at 31.5 m|
|MH-02-11:||8.3 g/t over 1.1 m at 15.2 m|
|MH-02-15:||29.2 g/t over 0.2 m at 40.3 m|
|MH-02-16:||87.2 g/t over 0.5 m at 14.4 m|
|MH-03-15:||278 g/t over 0.5 m at 257.3 m|
Gold mineralization occurs commonly as coarse free gold in association with sulphide- and sulphosalt-bearing quartz veins that have been intersected with shallow drilling over a 1-kilometre strike length. The mineralization remains open along strike and at depth. Trenching in 2015 exposed the mineralized veins in bedrock for the first time, revealing that gold mineralization is hosted by a series of sigmoidal veins related to roughly E-W trending shear zones. Strongly mineralized float sampled in 2015 returned values of up to 411 g/t Au and 98 g/t Ag.
2015/16 Exploration Program
2015 soil & till sampling, prospecting, and overburden stripping resulted in the discovery of several new zones of anomalous gold-in-soil, including a linear, N-S trending zone approximately 450 metres long and located along strike to the north from the main mineralized area. An angular quartz float found in 2015 just east of this new zone assayed 180 g/t Au and 146 g/t Ag. The new zone is located several hundred metres north of the area previously focused on and represents a new, untested target for diamond drilling.
In 2016, a borehole televiewer survey was conducted on select drill holes, and a detailed structural study was undertaken on the 2015 trenched exposure as well as historic drill core. This work has significantly increased the understanding of the local geology, vein geometry, and structural controls on the gold mineralization at Moosehead.
This work indicates that the main high-grade auriferous quartz veins are controlled by an E-W to WNW-ESE , north-dipping fault system (as opposed to a series of generally N-S trending faults, as previously interpreted from geophysical & borehole data).
The implication of this re-interpretation is that the historical E-W directed drilling was largely misplaced in testing the northerly trending faults, and has not adequately tested the E-W to WNW striking fault structures which appear to control the mineralization.
In conclusion, only a small number of the historic drill holes were drilled in a manner to optimally test the E-W striking, north-dipping, gold bearing structures.
Jeff Morgan, P.Geo., Exploration Manager, is the qualified person as defined by NI 43-101 guidelines responsible for the technical data presented herein.