2018 Streetwise on SH Sokoman Iron Corp. (SIC:TSX.V): Recent price $0.17; sold at average of $0.38
I was looking forward to visit the Sokoman project to gain a better understanding. However, when I spoke with the CEO, he came across quite unusual. He was not interested in me visiting the project, I was told there was nothing going on until September, there was nothing to see and there was no outcrops. The company's presentation and news releases say otherwise. I spoke with him a day after I commented about the misleading news release and I would be surprised if SIC saw that; perhaps they did. A site visit would be an opportunity for a better understanding of the project—who turns down free newsletter coverage?
Something smells here, and it is not good. Misleading drill news that hyped a 11.9-meter intersect when it was only 1.35 meters. There has been trenching, 111 drill holes and no resource yet. I think the drill hit was simple luck. For now I will still follow it and let the chart and/or the next drill results make my decision on what to do next. We took profits out twice at higher prices, and sold the remaining position in the high $0.20s, so I will use an average of $0.38 as the selling price.
This is how to calculate the grades outside the 1.35-meter high-grade intersect. First, find the total grams over the long intersect: 44.96 X 11.90 = 535.02 g/t. Next the high-grade portion: 385.85 X 1.35 = 520.90 g/t. Next, subtract the two-gram numbers and average over the outside portion of the high-grade intersect which is 11.90 – 1.35 = 10.55 meters. 535.02 – 520.90 = 14.12 g/t, so 14.12 g/t / 10.55 M = 1.34 g/t over 10.55 meters.
This 1.34 g/t would not be economic in an underground mining scenario, and that is what we are looking at here, because it is under a lake. Really, there is no long intersect. The real result is 385.85 g/t over 1.35 meters, and this is high grade but a narrow intersect and most likely a lucky hit on that vein.
In my update to sell a couple weeks back, I noted the stock will probably move down and continue to fill the gap from $0.24 to $0.42. It actually went lower and shows signs that it might be consolidating between $0.15 and $0.20. I will wait for next drill results before I decided whether to jump back in or not.