Tocvan closed above $0.50 - first time in November.Tocvan closed on Friday at $0.51 on 69,000 shares, but only 211,000 shares for the entire week. For those that aren't looking closely at gold, it closed at $1,774 yesterday, dramatically up from a low of about $1,620 at the start of November. The price of gold is going up very fast, traders were surprised it didn’t pause at 200ma at $1,750, quite the opposite, it blew through it. With the BRiCS adding new countries as members left and right, and more discussion of their gold backed currency, central banks buying gold at never seen before levels, and signs fed may plateau on a way to a pivot, we might see the gold price break $2,000.
The price of gold will ultimately come down to SUPPLY and DEMAND.
What does a run in gold price mean for gold resource investors - my guess - ultimately more speculators will start positioning in bullion and junior gold companies such as Tocvan. The fear of missing out will energize speculators to start buying cheaper highly leveraged stocks. The best plays will be first, followed by the very cheap penny plays (i.e. the dribble down effect). I believe Tocvan is in a sweet spot for speculators, first, the share structure is excellent with less than $38 M shares outstanding, but more importantly, fully financed for the next two year with a recent $5.2 M financing. This financing will lessen the risk during volatile market times, but also energize speculation when markets improve, such as is happening with the surging price of gold.
Tocvan has 2 excellent properties in Sonora, Mexico, Pilar and El Picacho. Pilar is fully advanced and largely de-risked with over 22,000 meters of drilling and will be conducting a large heap leach bulk sample which may very well clear the path to bring Pilar to production in 2023. I am sure many local producers in the area will be watching this bulk sample closely as they are looking to expand their production footprints. It is my understanding that finding gold reserves is getting very competitive as advanced properties are becoming more difficult to find.
El Picacho looks like an amazing property from a number of perspectives, i.e., significant historical mine workings, not only at the surface but some very deep mine shafts. My thoughts are that no one would dig mine shafts that deep if there wasn't significant gold showings. I urge everyone to review this week's Press Release,"Tocvan talks sampling from El Picacho historical data" Tocvan Ventures Corp. is continuing geological mapping and sampling at El Picacho at the Jabali prospect, an area with high-grade surface rock-chip and grab samples from exposed quartz-carbonate veins and artisanal workings.
Jabali prospect (El Picacho project) highlights:
- Over 500-metre trend across two areas of significant high-grade gold mineralization;
- 17 of 80 (21 per cent) rock samples above five grams per tonne gold, ranging from 5.7 grams per tonne gold to 32 grams per tonne gold, averaging 12.8 grams per tonne gold;
- 39 of 80 (49 per cent) rock samples above 0.2 gram per tonne gold, averaging 6.4 grams per tonne gold;
- Hosted in quartz-carbonate veining of unknown thickness exposed along artisanal workings, dipping shallowly to the west-northwest; mapping and sampling currently being completed;
- Never drill tested, currently permitted for 10 drill pads.
Timing is getting better for drilling as they are fully permitted for 10 drill pads and the recent reporting of field results is very encouraging that they are going to drill in the next month.
My final thoughts, I am understandably excited as it has been a long downward spiral for most stocks starting in the spring with the collapse of gold prices, but that now seems to be changing. Tocvan has cash to move forward with both properties. Lastly, they have been engaging several Investor Relation pathways to getting their story out to a broader audience.
You know what they say, more eyes watching will translate into more people buying once the shift in momentum starts. As my dad always said, "buy when the markets are quiet and prices are generally cheaper". He also said "when you get a winner, don't be too quick to sell it".