Drill, define, and expand resource - "Ready, Set, Match"It appears Tocvan Ventures is ready to get the game started. Over the last year, Tocvan has been building the value proposition of one of the more exciting properties to emerge in the Sonora area in a long time. I say this not because I am a shareholder, but rather I believe critical developments have come together at the right time. The price of gold is very attractive and set to surge higher given its current demand, also critical
nfrastructure and alliances have been established to successfully advance Pilar to production. Putting together a great property requires great vision. Simply put, Tocvan has taken the last year to focus on metallurgical studies, bulk sampling, and consolidating one of the best land packages in Sonora. They can now begin systematic drilling to define the size of the resource and to target several exciting discoveries across the newly acquired land package surrounding Pilar. Make no doubt about the importance of this land acquisition, as it not only provides access to several significant surface discoveries that have the potential to dramatically increase the resource estimate, but it also provides a larger area for infrastructure and multiple super-sized heap leach operations. A term often used in the promotion game is "Blue Sky Potential", I believe this fully describes the potential of Pilar. Tocvan has reached a stage that few companies have managed to achieve - conduct a Bulk Sample. Why is this so important? Brodie Sutherland, a seasoned geologist and now CEO of Tocvan, isn't wasting time. With over 23,000 metres of drilling todate, all data suggests that Pilar has the potential to become a very profitable open pit mining operation. But,rather than spending more money on drilling without understanding the economic implications, Brodie has decided to undertake a prudent approach. First, conducting metallurgical studies to confirm extraction methodologies, and secondly, conduct a very large bulk sample to prove at surface mineralization contains robust gold and silver. Both of these steps have proven the economic viability of Pilar and significantly advances the production timeline. Most companies never reach the bulk sample stage because drilling generally consists of small core samples collected at great depth making the collection of a bulk sample impossible. But since mineralization starts at the surface at Pilar, Tocvan was able to collect over 1,400 tonnes of rock starting at the surface by digging long trenches approximately 10 feet in depth and width (I have seen a video of one of these trenches, it is truly impressive). The size of this bulk sample proved to be a significant statistical confirmation of the "True" gold concentrations, not simply an extrapolation of drill results. Over 800 tonnes of bulk sample material were prepared for heap leach processing by crushing, and an additional 350 tonnes of crushed material and 250 tonnes of raw bulk sample are available for additional gravity recovery and agitated leach testing. What really caught my attention, and confirms why I am a shareholder, relates to the quality controls used to collect unbiased and statistically significant samples during the bulk sample crushing process. From Tocan's April 20, 2024 press release. " A total of 15 samples were collected during the first two days of crushing for the bulk sample. Results are showing very consistent grades, averaging 1.64 g/t Au with a range between 1.11 g/t and 2.18 g/t Au. Samples were collected from the conveyor belt over select intervals of time. Bulk sample material was blended from different trench areas".
In total, 148 samples were collected during the crushing process yielding 1.9 g/t gold head grade. This approach confirms for me that Tocvan has a surface open pit mine with little overburden to be removed before crushing and production, making this even more economical. An examination of other mines in the area that are economically viable at grades as low as 0.6 g/t gold confirms to me how profitable Pilar is going to be.The head grade on average for the heap leach pilot study at Pilar was an amazing 1.9 g/t gold. This exceeded everyone's expectations, suggesting that the small cores passing through these areas dramatically underestimated the concentration of gold. Also, as we get deeper in Pilar, concentrations as determined by drilling were excellent, for example, 2022 phase III diamond drilling highlighted this core of 116.9 m at 1.2 g/t Au, including 10.2 m at 12 g/t Au and 23 g/t Ag. Note that these results may be an underestimate given the results from the bulk sample study and our understanding of the geology. In addition, the independent precious metal diagnostic leach study confirmed that gold recovered by agitated and cyanide leach studies consistently produced results greater than 95% gold recovery. The stage has been set and the game is about to begin. But rather than just a game beginning at the first inning, we are at the later stages of play. Like my dad always said, "the reason why so many gamblers lose betting on horse races is because they have to bet before the race starts". Fortunately, we have the luxury of betting after the horse race has started and horses are sprinting to the finish line. The odds of success are dramatically better in this situation. But it gets better, there are more very significant advances that Brodie has been working on. From this week's press release, "The company has been working toward a long-term arrangement with a new Sonora-based drill company, Canmex Exploraciones y Servicios (CANMEX). The newly formed CANMEX is made up of management and operators with extensive experience in Sonora including several successful drill campaigns across the company's Pilar and Picacho projects. Owned and operated by longtime Tocvan supporters Leo Wurtz and Gerardo Martinez, CANMEX has at its disposal three RC rigs, five diamond core rigs and two truck-mounted water well rigs. All of this equipment can be utilized by the company during the next phases of exploration and development. The arrangement allows for cost-effective drilling to continue across both projects with a trusted local operator known for drilling excellence and environmental stewardship". What I also like about Sonora is that it is one of the most cost-effective jurisdictions for exploration and development. This, combined with the strategic relationship with CANMEX, Brodie has managed to establish a cost effective drill program, with all-in drill costs estimated to be $130 (U.S.) per metre which includes drilling, gold and multielement analysis, mobilization, geological and technical support.
Assay laboratory turnaround is currently ranging from 10 to 14 days allowing for rapid reporting and progressive target development.This turnaround is far less than reported in Canada and the US and will ensure a consistent batch reporting of samples throughout the entire year.
Indications are the drills will start soon at Pilar with 1,500 to 2,000 meters of drilling rumoured in March alone. Pilar is permitted for 83 drill pads, totalling a minimum of 10,000 metres of drilling across the property, to continue to evaluate expansion potential of the known area of mineralization. Over half of the Pilar property has yet to be systematically drilled, with follow-up on several new parallel zones to the Main zone required. I am hoping the drill program will be accelerated with multiple rigs turning and the potential to drill 20,000 m as they permit more drilling pads. I am confident that this will eventually lead to a multi-million oz area resource.
There have been questions about where the money is going to come from to get all of this done, i.e. buy the remaining 59% of Pilar from Colibrie Resources, complete the land acquisition, and drill potentially up to 20,000 metres. I suspect we will learn more over the coming weeks. A project this advanced will attract smart money, so I am not worried about this.
Lastly, I heard my dad telling my mom one time, "the stock market has been very good this year, what would you like, a pool or a trip to Europe".... needless to say, I loved both the pool and trip to Europe. I didn't put in a pool for my kids, but they did love the lake where we built our family home. Playing stocks isn't like betting on a horse race, however, one must be careful to understand what a good horse looks like.