Infill drilling has commenced - why is this important? I first would like to start off by extending my prayers to the people of California impacted by the devastating wildfires. A combination of perfect events have led to unprecedented destruction, and unfortunately, it isn't over yet. This will undoubtedly change the landscape of this beautiful area forever, and its impacts will be felt for many years to come.
On a more positive note, Colibri has finally started infill drilling in the Main Zone at Gran Pilar. This is something I have been waiting for as it will lead to a resource estimate and to further advance the Main Zone of Pilar leading to the start of production. I believe these are important and critical next steps for Tocvan.
"Based on management's strong belief in the project's potential, the company is outlining a permitting and operations strategy for a pilot facility at Pilar. The facility would underpin a robust test mine scenario with aims to process up to 50,000 tonnes of material. Timelines and budget are being prepared with the aim of moving forward with the development early in 2025."
It has been another quiet week for Tocvan, closing Friday at $0.52 and trading only 23,000 shares for the entire week. This low volume is not unexpected as shareholders appear comfortable to see what the future brings.
There are two rigs currently on Gran Pilar with 4 cores at the lab. Who knows what the assays will say but Brodie has had plenty of time to put the geological model for the area surrounding the Main Zone, so I am confident we will see the trend continue onto the new property, otherwise he wouldn't bother drilling these targets
"Prior to the holiday break, four RC drill holes were completed, totalling 776.2 meters. Several trends extending into the 100-per-cent-controlled expansion area (over 2,100 hectares) are being tested for the first time, pushing the known boundary of mineralization further out than ever before. Assays are pending for the four drill holes. RC drilling is planned to continue throughout the year."
I was encouraged to see the first two holes were drilled to 200 m.This should provide an excellent first look at the depth and continuity of the mineralized extensions from the Main Zone. These drill locations were chosen by not only the intense visual surface mineralization but by samples collected previously.
A quote from Brodie from this week's press release focuses on two key project advancements:
1) the establishment and ongoing expansion of a resource estimate and
2) the setup and processing of a proof-of-concept test mine
"With drilling ongoing we expect results from RC drilling and surface exploration across the Gran Pilar expansion area starting the later half of January into February. First results from core drilling we expect later in February into early March. During this time, we will continue to build towards test mine operation with aim for proof-of-concept production during the third quarter of this year. The Tocvan team wishes everyone a happy and healthy 2025. With the progression of the exciting events unfolding, we are optimistic for a great year ahead for Tocvan and its shareholders."
"With gold prices hitting all-time highs, the company believes the on-site test mine will provide key economic parameters and showcase the mineral potential of the area".
Gold futures pushed up over $2,700 USD yesterday, a bullish sign that gold consolidated during the later part of 2024. I am hoping for a continued upward trend over $3,000 as countries like China have started buying gold again after the Christmas break. Silver futures also pushed up over $31 on Friday, both of which support a robust economic revenue model for Tocvan.
I am anxiously waiting to hear about the closing of the recently announced Private Placement for $3 M, of which "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."
Tocvan is also reviewing several proposals which will potentially allow for a non-dilutive method to fully finance the test mine facility. The total infrastructure is expected to cost approximately $1.7-million (U.S.). I am guessing this proposal and remainder of the financing may be tied together in some manner, perhaps the reason for the delay. If I was financing this project, I would want to own shares by participating in the Private Placement.
As my father always said, "follow the money".