Tocvan closed at $0.55 on 184,000 shares and extremely well bid near the end of the day. TOC traded another 602,000 for the short week and 2.3 M for the last 30 calendar days. Overall, high volume for a company with about a little over 37 M shares outstanding.
As everyone knows, timing is everything, i.e. Christmas, tax loss selling and plenty of vacation days around this time of year. It is the cup half full and half empty theory, for some impatience brings doubt which leads to selling, for others, it becomes a buying opportunity as the "value proposition" for Tocvan remains strong. In fact, when one looks at the value proposition and timing of potential news, the future looks very bright.
Pilar is undergoing a 1,000 ton bulk sample which could lead to a production decision. I also expect drilling to begin soon as more holes are plugged leading to a maiden resource estimate. This likely positions Pilar for near term production and increased cash flow without share dilution. An achievement that almost never happens with most junior resource companies.
I am getting very excited about El Picacho, as I believe this actually represents a better property than Pilar. All the signs are there, Sonora district of Mexico is home to many of the largest gold and silver producing mines in the world. Picacho is only 18 kilometres southwest of the producing San Francisco mine which hosts over 3 M oz of Gold and only 140 kilometres north of famous Hermosillo. The geology of Picacho is strikingly similar to the SanFrancisco mine, many think El Picacho could be the next big multi million oz area discovery in Mexico. I am sure the initial geology and historic working discoveries are attracting attention from other producing mines.
At El Picacho, the company's brownfield gold-silver project in Sonora, surface work outlined key target areas across the large 24-square-kilometre project area. An initial drill program was completed at its San Ramon prospect; results are pending. 2022 El Picacho project highlights:
- Surface sampling, mapping and data compilation defining key target areas:
- San Ramon prospect -- 500-metre trend, highlighted by two underground workings, up to 22 grams per tonne gold (see news release dated Sept. 13, 2022;
- Murcielago prospect -- 450-metre trend, highlighted by 7.2 grams per tonne gold, 36 grams per tonne silver and 4.4 per cent lead in silicified brecciated limestone (see news release dated July 6, 2022);
- Jabali prospect -- 500-metre trend, highlighted by average sample grade of 3.2 grams per tonne gold, up to 32 grams per tonne gold;
- Initial drill targeting at San Ramon prospect -- results pending.
One thing for certain, it will be an interesting year ahead.
And for long term shareholders, as announced May 19, 2022, the company will be issuing shares of a new company, Cascade Copper, on or about the time Cascade completes its initial public offering. Each shareholder of record as of the close of business on May 31, 2022, will receive, on the distribution date, one common share of Cascade Copper for every 6.5384044 common shares held in the company. The share dividend is expected to be distributed in Q1 2023 to the company's shareholders. No action is required by shareholders in order to receive the common shares of Cascade Copper in the dividend distribution.
Sounds like this is going to happen in the first QTR of 2023.