The drilling permit is here: everything can now go very quickly!
Here's the news we shareholders of Tocvan Ventures Corp. (CSE: TOC , WKN: A2PE64 ) have been waiting for weeks. The drilling permit has arrived and now we can finally start. Since some of them probably no longer expected the drilling permit this year and left, the current low share price offers an attractive entry or purchase level. The drilling is scheduled to start on Friday (see video interview).
Highlights :
• Tocvan is now allowed to start a drilling program in Mexico that can quickly become a huge success.
• North American investors often only get in at the start of drilling to bet on good drilling results.
• Tocvan has sufficient cash reserves to complete the upcoming drill program without funding.
• Very tight share float: With only 25 million shares issued, things can now go up quickly.
• Low market capitalization of currently 5 million euros: a doubling by the time the first drilling results are published should not come as a surprise.
• Good drilling results can easily catapult the company valuation to over EUR 25 million, more than a five-fold increase in the current share price from EUR 0.21 to over EUR 1.
The share of Minera Alamos was able to outperform the price of gold and other gold stocks significantly.
• Other gold explorers in Mexico have shown how fast it can go. Example: The share price of Minera Alamos Inc. (TSX.V: MAI ) has increased three-fold since March (from $ 100 million to currently almost $ 300 million market capitalization), although "only" good drilling results were published and the decision is implemented to go directly into production (with Osisko Gold Royalties Ltd. as a billion-dollar partner).
• Minera Alamos has no official resource estimate, economics or feasibility studies, but "only" good drill results and a successful bulk sample of 50,000 t ore with an average grade of 0.67 g / t gold.
• In Mexico, gold projects go into production much faster than elsewhere, because there are epithermal gold deposits near the earth's surface that can be mined inexpensively in an open pit.
Full version / gold mining projects (in blue) in Sonora with projects from Sonoro Metals Corp. (in red) and approximate locations from the Pilar Project (Tocvan) and Santana Project (Minera Alamos).
• The Mexican state of Sonora has the largest number of gold mines in the entire country. The state government and mining authorities there are uncomplicated and support fast production projects.
• The Tocvan Pilar property is not a high risk, young project in the early stages, but rather advanced: wells with a total length of over 17,700 m have already been completed (by previous project operators), mainly in the Main Zone .
• Tocvan wants to enlarge the Main Zone with the upcoming drilling program in order to then take a large sample and prepare a mine plan so that production can begin as quickly as possible. These are exactly the same steps that Minera Alamos has taken with great success.
• 2018 drilling (Main Zone) :
0.87 g / t gold over 48 meters
0.75 g / t gold over 61.5 meters
• 2013 drilling (Main Zone) :
0.94 g / t gold over 66 m (after 39 m drill core length, so close to the surface!)
1.3 g / t gold over 34.5 m
• 2010 drilling (Main Zone) :
1.32 g / t gold over 41 m (directly from the surface! 1.89 g / t gold in the first 28 m!)
0.58 g / t gold over 59 m ( directly from the surface of the earth!)
• For comparison : The Phase 1 drilling program of Minera Alamos consisted of 10 holes with a total length of 1,500 m in 2018/2019 (the first drilling program since 2011; similar to Tocvan!). Minera Alamos' 2018/2019 drilling returned up to 0.65 g / t gold over 93.5 meters and 1.05 g / t gold over 80.4 meters . These are very good results for an open pit mine in Mexico ! If one compares these results with the drilling results of Pilar, then the blatant undervaluation and the enormous share price potential of Tocvan becomes clear.
• Tocvan's upcoming Phase 1 drill program will also be up to 1,500 meters in length (approximately 10 holes).
• Just like at Minera Alamos, Tocvan will initially use an RC drill (cheaper, faster and less complicated than core drills), with which 10 holes can be drilled easily in about 2 weeks, so that the phase 1 drilling program should be completed before Christmas The drilling results will be published at the beginning of the new year.
• To get to the same market value as Minera Alamos, the Tocvan share price has to multiply 33-fold. That may sound like an exaggeration, but it is not at all, because the parallels (project steps) and similarities (project geology) are obvious.
• The following graphic illustrates the exceptionally good chances of success with the upcoming drilling programs:
Full version / source
• The black lines show the many drillings in the main zone and that only a few drillings took place in the 4-trench zone .
• Between the Main and 4-Trench Zones, there is an area that has not been tested with drilling because there was no evidence of gold above it (gold-bearing rock samples).
• During the past few months, Tocvan has for the first time carried out modern (deep and high resolution) geophysical surveys over the entire Pilar property and identified huge pipe structures (the green area between Main and 4-Trench where no drilling has been carried out ).
• The probability is high that these pipe structures are so-called "feeder" systems , ie feed channels from the depths in which the gold was transported in hot liquids and then deposited down to the earth's surface (main zone and 4-trench).
• The special thing about such feeder pipes : The gold content is significantly higher and is typically around 30 g / t. Since these structures are very large, several million ounces of gold can lie here - relatively close to the surface of the earth, because these pipes occur at depths of 150 m.
• Another special feature : There is a so-called "silica cap" above the pipes , an approximately 150 m thick layer in which no gold occurs (which is why no gold-bearing rock samples were found on the earth's surface - the reason why in this area so far no drilling took place).
• More details on these newly discovered feeder pipes in previous Rockstone reports.