Drilling has started, $2.1 M first tranche closed. The share price of Tocvan closed Friday at $0.50 on 1,000 shares. The volume was very low for the week with only 119,000 shares trading, this low volume is an indication of two factors, 1) Tocvan's tight share structure and 2) the progress being made towards production.
We are in the quiet days leading up to Christmas when shareholders are less engaged with the stock markets. This pattern will generally continue into 2025 people return from vacations. I suspect there will be very little tax loss selling in Tocvan as the float has largely turned over during the year. There is also anticipation of drilling towards a Maiden resource estimate for the Main area of Pilar and building a 50,000 ton pilot production facility in early 2025.
Clearly the discussions and advancement of the Pilot facility is at an advanced stage as stated in an earlier press release, "we are exploring non-dilutive methods to fully finance the operation" of a test mine for Pilar.
" Regarding the test mine, the company estimates the total cost of the Pilot facility including the extraction and processing of 50,000 tonnes to be approximately $1.7-million (U.S.). The company expects to recover between 800 and 1,400 ounces of gold, dependent on grade and recovery encountered with an additional 5,000 ounces of recovered silver. The company has used conservative estimates based off recovery rates encountered during the independently reviewed bulk sample completed in 2023 that yielded a head grade of 1.9 grams per tonne gold with 62-per-cent recovery. The company is reviewing several term sheets to evaluate non-dilutive methods to fully finance the test mine facility.
CASH in the BANK. It is great to see Tocvan close the first tranche financing for $1.8 Million. I suspect the remainder of the financing will close shortly.
Sorbie Bornholm has more SKIN in the GAME.
"Tocvan Ventures Corp. has closed a first tranche of its previously announced non-brokered private placement of units for gross proceeds of $2,105,320, which included $1.8-million from a United Kingdom-based institutional investor, Sorbie Bornholm LP, which has invested in several previous private placements with the company since 2022."
"Each finder's warrant is exercisable at a price of 48 cents per common share for a period of 36 months from the closing of the offering. In addition, Sorbie received a corporate finance fee of $126,000, paid via the issuance of 262,500 common shares and 262,500 warrants on the terms noted above." The acceptance of payment through common shares by Sorbie is a true indication of their belief in Tocvan emerging as a significant producer in the Sonora area.
It is exciting to see that the first of a proposed two phase drilling program has begun with RC drilling on the expansion area. I suspect the next drilling to start will be with Colibri's rig in the Main area where Tocvan owns 51%. This should result in at least two rigs actively drilling.
"We are excited to close the first tranche and announce RC drilling on the expansion area has commenced," commented chief executive officer Brodie Sutherland. "This next phase of drilling will focus on the immediate expansion of mineralized trends to the north and northeast of the main zone, pushing the boundaries into undrilled areas. Recent surface results have indicated mineralization continues and we look forward to unlocking additional resource potential. Funds will be allocated to advance drilling efforts, permit new drill targets across the broad expansion area, and permit and prepare for the anticipated pilot mine in 2025."
Overall, I am very pleased with the progress, perhaps a bit slower than everyone would like. Colibri has yet to start drilling the Main area but I suspect this will start soon. The good part is they have raised sufficient capital for both long-term risk management as evidenced with the Sorbie financing and the near term capital requirements for drilling Gran Pilar.
I am happy to see that Brodie has elected to concentrate on drilling the extensions of the Main area that is 100% owned by Tocvan. This strategy of drilling high priority targets that are extensions and adjacent to the Main zone is the quickest way to expand resources for future production. This was not possible previously until they acquired the Gran Pilar property, a massive land area over 22 times larger than the Main area of Pilar.
It is important to understand the Gran Pilar acquisition is a game changer for Tocvan. It has become the target of a "Major", and although early stage, the potential is undeniable. Given the extensive geological mapping and discoveries, Brodie has mentioned he believes this could be a multi-million oz discovery. He has elected to start by drilling out from the Main area first, something that was not possible before the acquisition.
As my dad always said around this time of the year, "keep some cash available for deals in the market due to tax loss selling".
I hope everyone has a Great Christmas and Happy New Year.