Brodie provides update of timeline for 2025. Another very quiet week for Tocvan, closing Friday at $0.51 on 7,300 shares, and again very low volume for the week with only 66,000 shares.
Brodie provided a brief update this week on the timelines for 2025. https://www.youtube.com/watch?v=K-zDlUCpfIs
Gold future surged last week to close above $2,750, but the junior resource sector remains relatively invisible to the current price. Gold has formed a strong base above $2,600 and shows all the characteristics that there will be a run over $3,000 this year. Countries like China have resumed buying gold and the private gold markets remain very strong as evidenced by the gold sold by Costco.
According to Wells Fargo, "Costco has sold between $100 million and $200 million in gold bars per month and is a significant increase from the $100 million in sales in the first quarter of 2023.
What does this mean for Tocvan?
Simply stated, Tocvan is in a desirable position.
Tocvan is an advanced and well structured junior resource company that has significant upside potential. Tocvan's Pilar asset consists of a larger tract of land, called Gran Pilar, where they hold a 100-per-cent interest in over 21 square km of prospective area, and a smaller section of land, called Pilar, where they own 51% shared with Colibri Resources.
The smaller Pilar property is at an advanced stage with over 23,000 m of drilling. A test extraction consisting of several surface trenches was conducted last year resulting in the production of Tocvan's first gold bars from a test heap leach pad. Metallurgical studies have already been completed. Much of what was learned during this process will be applied to larger heap leach pads, thus optimizing the extraction process and increasing potential gold and silver recoveries
The next phase at Pilar is a 50,000 ton Proof-of-Concept test mine which will pave the path to full production. They are reviewing several proposals, which will potentially allow for a non-dilutive method to fully finance the test mine facility, which is budgeted to cost approximately $1.7-million (U.S.). I suspect this acquisition will reduce the overall full production cost.
The larger Gran Pilar is over 20 times the size of Pilar and has significant expansion potential. They have already drilled 4 holes to the Northeast which are believed to be extensions of the Main Zone of Pilar. I am encouraged to hear that Brodie has stated that the drill holes are in the right material but as everyone knows, the proof will be when the assays are released. Results from these holes are expected over the coming weeks.
Colibri has started an initial 9 hole diamond drill program that will be focused on the JV area across the Main zone to build out a robust geological model needed for resource estimation. I suspect results from these holes will be released in batches as they are received.