Post by
lifegoeson on Jan 30, 2022 12:51pm
Drilling Continues, up to 8,000 m planned.
TOC closed at $0.96 on 45,000 shares on Friday and traded only 251,000 shares for the entire week. I have been asked by several people why TOC consistently trades low volumes and that there are never very large bids or offers. There is no simple answer to this question but there are consistencies between TOC and other stocks that are at advanced development stages.
First, TOC selected Pilar because of the previous excellent drilling results. There was over 17,000 m of drilling before TOC optioned the property, thus lowering the risk going forward because of the extensive drilling database. In contrast, there is greater risk with properties that have had no drilling.
Second, management has demonstrated their ability to keep the share structure as tight as possible by first financing at a higher price of $0.20 (less advanced properties with higher risk are forced to raise capital at much lower prices, generally less than $0.10), raising capital through the exercise of warrants and options ($620,000 March 31, 3021), and then raising money at $0.60 ($746,000 March 31, 2021). This is overall a good recipe for keeping the share structure tight, but as we know the good part is people only put money in Private Placements at higher price if they can be convinced that assay data supports the price and that there is room for significant future price appreciation. This may take years but often well worth waiting.
Third, they conducted a very, very successful Phase II drilling program in 2021 which resulted in new shareholders taking positions, driving the price up over $1.00 to the $1.50 range. The price subsequently drifted lower between drilling programs to where we are today.
Now the game is on in my opinion. TOC has raised money at $1 and subsequently began Phase III in December 2021 which consists of trenching, metallurgy and about 8,000 m of drilling. TOC is now transitioning from an early-stage exploration company to a company that is systematically infill drilling and stepping out the main zone with the intent of calculating a 43-101 compliant resource. Looking at the maps in their corporate presentation, there could be a significant resource just in the Main zone.
I am very excited about the data beginning to emerge from the continued step out drilling along the Main zone trend. I am also excited that they have discovered a new zone called the 4-Trench (map above). We already know targets areas along the Triple Vein zone represent considerable upside to the resource potential at the Main zone. I encourage people to go to TOCVAN's website and look at their corporate presentation. This presentation also provides an interesting data overview of El Picacho which I have not seen before, suggesting this has significant upside potential for TOC. El Picacho is located in the Sonora area just north of Pilar.
https://tocvan.com/wp-content/uploads/2022/01/Corp-Pers-Jan22.pdf
TOC has completed and just recently released data from 4 trenching locations. There are some very exciting implications here, the two most important being Pilar basically starts at the surface, thus reasonable to assume there could be an open pit mine given comparisons to other operating mines in the Sonora area, and secondly, given the consistent nature of mineralization across all trenches, this should yield metallurgical results and recovery rates which will logically apply to the entire Pilar formation. Earlier bottle roll tests on small samples suggest recovery rates could be quite high, so i am excited to see the results from significantly larger samples rather than smaller single diameter core samples.
For those of you that are interested, I have started a Twitter presence (I signed up to Twitter back in 2019 when I wanted to see what politicans were saying). I am an old, retired guy with not much to do, so I have made a New Year’s Resolution to embrace new technologies such as Twitter (sure has been a learning curve for an old guy). I must keep up with the younger generation or risk becoming more isolated as I grow older. I am not sure what I am going to say but I suspect this is going to be a forum for me to express my views about trading stocks. If anyone is interested in following me, here are my coordinates. My profile pictures are from Monument Valley and Bryce Canyon, two amazing locations I have loved hiking.
Nothing_but_the_FACTS
@Goldbug_101