Yet again, more new buyers around Tocvan last week.Always a good sign to see new buyers, usually means they believe in what is going on and timing is getting better. Tocvan traded about 850,000 shares last week and the price moved up over $0.45. Tocvan has traded about 1.6 M shares in the last three weeks, looks like the changing of the guard, the weak and impatient taking advantage to sell thinking they are winning by selling, while others (call them the strong for lack of a better word) step in to build positions. For example, Credential stepped in last week to buy 306,000 shares (not selling any). Now that is buying a position for future speculation.
The drills are turning at El Picacho, and soon to be turning at Pilar, plus a bulk heap leach sample to be conducted which will provide the necessary paramaters for taking Pilar into production, i.e. tonnage, extraction rate, cost, etc.
The addition of two strategic Board members is another strategic step in the right direction. Mr. Wintermantel, a resident of Germany, brings over 20 years of financial market experience and provides a crucial link to the company's strong European shareholder base. Mr. Arroyo, a resident of Mexico, brings an impressive 48 years of professional experience in mine operations and will be an excellent resource with his background in moving projects from exploration to production. Tocvan has a significant base of shareholder in Europe, so the addition of Wintermantel looks like a nice find. Also Arroyo seems to be a wealth of knowledge and has the connections required to bring Pilar to production.
The attraction of new buyers in Europe and the potential for near-term production are two important elements required by Tocvan to bring shareholder value. Remember, Tocvan has less 38 M shares and fully financed with the ability to access more than $5M over the coming months.
Fundamentally nothing has changed, except perhaps for the better, with the addition of two strategic Board members and new buyers such as Credential. Also the price of gold has strengthened over the last few weeks, now over $1,800. Could we be in for a run in gold over the $2,000 barrier.
Tocvan is located in an area of several produers who are likely very interested in seeing results from the bulk sample at Pilar, which could lead to an accelerated production schedule, especially if any of these nearby producers get involved in a strategic relationship by providing equipment and resources. Bringing Pilar to production would not only strengthen their cash position, but reduce share dilution, which could represent one of the best leverages shareholders will have, i.e., market capitalizaiton is a product of outstanding shares and share price. Generally, the lower the number of shares outstanding in a successful company, the higher the share price.
I am hoping that results from El Picacho are indicative of a multi-million oz deposit similar to other larger producting mines such as Hemosillo's La Herradura (over 10 million ounces Au) located 140 kilometres to the north and San Francisco mine (over 3 M oz) located ONLY 18 kilometres southwest. From what I have heard, the similarities to both these mines, is comparable to the numerous deep audits, mine shafts and geologocial interpretation at El Picacho. Also given the number of high priority targets at El Picacho, this could be the next muli-million oz property. I guess what I am trying to say is I am very interested in seeing the drill results at El Picacho.
It is important to not that as fewer new gold discoveries occur in Sonora due to regulations, El Picacho could be one of the next winners given they already have all permits and regulatory conditions in place.