Dear Shareholder:
 
As a supporter of Sokoman Minerals, I wanted to take this opportunity to thank you for your loyalty and look forward to sharing with you our exciting plans for 2022. But first I thought an overview of some of our key milestones achieved during 2021 would be of interest to you.
 

Significant Milestones during 2021:
  • During February, we added a second diamond drill rig to expand Phase 6 at our flagship project Moosehead from 10,000 m to 20,000 m. New zones of mineralization were encountered in underexplored areas of the property which are still being modelled and that require further drill testing.  
  • In early March we acquired the Fleur de Lys Project targeting Dalradian-style orogenic gold in North-Central Newfoundland through staking and option agreements for a total of 1,891 claims (47,275 hectares) spanning some 60 km in length and up to 5 km in width. Akin to the length of the Timmins gold belt, the entire block has seen only one drill hole. A large till sampling program has been underway there all year.
  • By the beginning of April, we had closed a $6.5M financing led by Eric Sprott and other key shareholders. This large investment into Sokoman required shareholder approval to allow Mr. Sprott to own more than 20% of the Company.
  • A new zone of high-grade gold referred to as the Footwall Splay cut 11.6 m of 21 g/t Au including 5.1 m of 30.8 g/t Au in hole MH-21-163.
  • In May, Benton Resources and Sokoman became 50/50 owners of three properties to jointly explore for gold in Newfoundland, called the JV Alliance. Both CEOs were born and raised on the Island so are very knowledgeable of the exciting mineral prospects that Newfoundland offers that resulted in SIC becoming one of the top landholders on the Island. All three projects are targeting large, high-grade orogenic gold mineralization on crustal scale faults in Newfoundland which is now recognized as a “go to destination” for gold. These projects include:
    • Grey River Gold Project located in Southern Newfoundland consists of 321 claims (8,100 hectares) targeting “Pogo-type” orogenic gold.
    • Golden Hope Property consists of 3,146 claims (78,650 hectares) in Southwestern Newfoundland  along trend from Cape Ray and Hope Brook Gold deposits.
    • Kepenkeck Gold Property has 595 claim units over 15,625 hectares and is along trend from the Golden Baie Property (Canstar Resources).
  • East Alder Gold Project was optioned to Canterra Minerals (CTM: TSXV) and Crippleback Lake Gold Project was optioned to Trans Canada Gold Corp. (TTG: TSXV) both for cash and shares.
  • In August, a third diamond drill rig was mobilized originally to focus on the emerging discovery at the 75 Zone and other areas in the Eastern Trend and the mineralization continues to expand in these areas. It was later moved to the Grey River Gold Property where high-grade gold chip samples were taken earlier in the summer.  
  • Meanwhile, in September, grab samples of up to 2.37% Li2O on the Golden Hope Property resulted in the discovery of high-grade lithium-bearing pegmatites and became Newfoundland’s first high-grade lithium discovery. By October, the JV Alliance had expanded its land position further and renamed the discovery The Kraken Lithium Pegmatite Swarm.
  • Also in September, a barge was delivered to the Eastern Trend area at Moosehead, a fourth drill rig was mounted on it and drilling commenced on the North Pond allowing excellent access to some sections of the Eastern Trend including the Footwall Splay that had largely been devoid of drilling.
  • In October, the Fleur de Lys Project delivered outstanding gold-grain counts in till samples, many of which were pristine, and this suggests a very local source.
  • With drill permits in hand at Grey River, rig #3 started to drill gold targets in mid-October and by the end of November, super-rushed assays for 6 of 13 samples returned assays up to 37.64 g/t Au. Grey River is highlighted by an extensive zone of quartz or silica over 10 kilometres in length with no drilling for gold having tested the zone. Summer rock sampling returned up to 134 g/t Au from Grey River.  
  • Early barge drilling results on North Pond have also returned high-grade gold assays including 4.95 m of 27.70 g/t Au. To date 41 drill holes have been completed from the barge with 27 holes returning intersections featuring visible gold. 
  • Before the end of the year, Sokoman expanded Phase 6 at Moosehead to 100,000 m by deploying four drill rigs. Since acquiring the project in mid 2018, some 63,000 m has been completed  in 360 drill holes. With a treasury of over $10M, SIC is well positioned to pursue very aggressive exploration and expansion drill work on all of its projects.

Tim Froude holding core from barge drill hole
 

Exploration Plans for 2022:
  • A total of 2,913 assays are awaited from 59 drill holes at Moosehead.  A batch including sections from multiple barge holes have been “Super Rushed” for metallics assaying and results are expected very early in January.  
  • Over 55,000 m of drilling remains to be completed in the current phase at Moosehead and if conditions allow, will include ice-based holes in early 2022 to continue the success of the barge program. The barge will return in the spring and is expected to remain on the property for at least several months. The results from the recently completed CSAMT geophysical survey are expected in the first quarter of 2022 and will help plan for deeper drilling at Moosehead.
  • February drilling on land at Moosehead to continue expanding all currently-known mineralized zones including reconnaissance drilling. Drilling to continue through 2022.
  • Diamond drilling at Grey River is expected to commence in the second quarter of 2022 to follow-up on the exciting results to date. Program details will be announced once all outstanding drill results have been received.
  • A total of 630 core samples remain outstanding from the Grey River Phase 1 drilling completed with JV partner Benton Resources. We earlier announced high-grade results (up to 37.64 g/t Au) from a small selection of core samples “Super-Rush assays” from Holes 1 and 2 signaling a new discovery in an area with no previous drilling. 
  • At Golden Hope, we intend to begin drilling the Lithium Pegmatite Swarm in early January with Joint Venture Partner Benton Resources to help determine how best to monetize this asset for our shareholders.
  • Target definition will continue at Fleur de Lys with more than 100 anomalous, glacial, till-sample sites already identified and at least two clear target areas are emerging. Drill testing may be possible in the third or fourth quarter of 2022.
  • With drilling planned for multiple gold projects in 2022 as well as the initial testing of our lithium discovery, we expect 2022 to be a very exciting year for our Company. 
Season’s Greetings to you and your family and stay safe during these uncertain times.
 
Kindest Regards
Tim Froude, Director, President & CEO