The "Sleepy Months of Summer" - What's Next? Brodie Sutherland, CEO of Tocvan Ventures,outlined the steps going forward this week in a u-tube video that was largely targeting current shareholders in Germany. This video was different from most I have seen. There was a sense of urgency in his voice, but also a sense of frustration.
I have spoken about the "Sleepy Months of Summer" many times, and even though the volumes have been light, it is frustrating to see the price of Tocvan continue to slide each week. Unfortunately, there isn't much anyone can do about this. I am of the view that Brodie is building a company, NOT a promotion. It is already near the end of August and I would anticipate a good flow of information over the next several months and well into 2025.
Here is the u-tube video.
https://www.youtube.com/watch?v=M4GLZJPq4F0
Given what I heard in this video, I think the decision to start with a pilot production plant, as a "Proof-of-Concept", is a reasonable approach given the depressed junior resource markets and the difficulty many companies are having raising capital. Just look around, this problem is not just a Tocvan problem, it is a sector problem.
Tocvan closed Friday at $0.43 on 36,000 shares. Canaccord has been trying to sell 50,000 shares for the last 4 weeks, it appears this order has 37,500 shares left. But in addition to this sell order, Anonymous continues to jump below this order and sell stock, constantly moving the price lower. Tocvan traded ONLY 81,890 shares for the entire week. I am confident this extremely low volume has to do with a strong shareholder base. I view these low volume sellers as simply chatter, i.e., profit takers and manipulators, and in no way do they suggest the value proposition has changed.
The video above suggests they have undertaken a very productive summer field sampling program with the collection of over 200 soil samples and the discovery of new surface mineralized areas.
I would add to this that the "Major", apparently one of the largest producers of silver in Mexico, has been onsite for several weeks alongside geologists from Tocvan. They extended their investigations, thus clearly liking what they have seen. Initial investigations suggest Gran Pilar holds the potential for a multi-million ounce deposit when one compares this larger area to what has already been discovered in the much smaller Pilar (i.e., only 2% of Gran Pilar). Brodie stated that they will be meeting with the "Major" during the upcoming mining conference (Congreso Internacional Minero) to be held in Mexico, October.22 through to October 26.
There will be a good flow of assays over the coming months, as results from the soil samples should be released in the coming weeks, as well, drilling is about to start in September with results becoming available throughout October to the end of the year and beyond. I am also anticipating a maiden resource estimate to be released by the end of the year.
The permitting process is underway for the pilot plant with a production start in early 2025 (approvals are expected in November 2024). The pilot mine is expected to process 50,000 tons and should add to future working capital with little share dilution.
Tocvan is in a good position with about $1.5 M of working capital and has an excellent share structure for a company heading into the pre-full production phase (i.e., about 51 M shares). Historical data supports the theory that companies who are successful in the discovery and exploration phase, and who are on the last leg of the curve heading to production, have the highest probability of yielding spectacular returns for investors.
As my dad always said, "it is all about timing and keeping a close eye as to when a company enters the production phase", he firmly believed quality stock heading to production are worth investing in.