It was another very quiet week for Tocvan with just 1,000 shares trading on Friday and only 147,000 shares for the entire week. The summer quiet period has begun, with the first week of July already over.
It was nice to see the price of gold back up touching $2,400 USD again. I still believe it is just a matter of time before gold runs higher. Large companies like Costco are selling gold and silver, they are now selling about $200 Million of gold bars and silver coins each month, yes - that is $200 Million each month. This trend by large companies will only accelerate the imbalance in supplies, resulting in the price of gold pushing higher.
It was an interesting Press Release this week, my takeaway was that they continue to hit mineralization and expand the Pilar footprint as they drilled the furthest north drillhole to date with a blind target on the North Hill Trend. All three holes released hit mineralization, and although gold and silver assays were not elevated throughout these cores, it does point to the need for further drilling back towards the elevated pay zones on Pilar as JES-24-88 is 350 meters to the north where mineralization was encountered.
What I found particularly interesting is that step-out hole JES-24-88 tested a blind target on trend and 130-meters northwest of previously released drillhole JES-24-79 which returned 42.7 meters of 1.0 g/t Au. JES -24-88 returned 24.4 meters of 0.2 g/t Au and 4 g/t Ag including 1.5 meters of 1.1 g/t Au and 25 g/t Ag. This may be a continuation of the intense gold band found in JES-24-79, therefore, infill drilling is required to see the true extent of this band identified previously. If the band broadens as it reaches JES-24-79, this would greatly increase the resource potential.
To date, the 2024 drill program has completed 3,268 meters across 26 drill holes. Results for eight drill holes are currently pending analysis and they have begun a summer mapping, rock, and soil sample program across the Pilar Expansion Area. This sampling program will focus on key areas to be drilled when drilling resumes.
"The latest results continue to show expansion potential remains open and untested across several developing trends." commented Brodie Sutherland, CEO. "Step-out drilling has hit a blind target where no previous data was available significantly extending mineralization out another 130-meters. We are highly encouraged by these results and the significance they imply along trends that have shown recently they can yield high-grade results. It is important to recall the majority of past drilling focused primarily along the Main Zone where significant surface exposure provided well guided drill targeting. Future resource development will rely on sound geological knowledge and progressive testing through drilling. Each hole that hits mineralization further out from the Main Zone provides sound evidence for added resource potential, we still have not begun to drill across the expansion area that covers over 20x the area drilled to date. Surface work is ongoing to rapidly define the surface expression of mineralization and advance new drill target areas. We look forward to updating as more drill results become available."
Two company value added drivers remain in play before we resume drilling once the field program is complete. There are eight more drill holes pending and a Major is undertaking due diligence to determine their potential future involvement.
There are three options that might result from an investigation by the Major, 1) potential for a Joint Venture Agreement to accelerate drilling, resource expansion, and production, 2) possible takeover of Pilar, but I think the probability of this is low at this stage of development, or 3) continue to monitor and stay engaged as Brodie unlocks more potential within the Pilar Expansion Area.
The Major still has not been identified yet, but rumour has it that Fresnillo might be the group. If true, they are a dominant player in Mexico and are always on the hunt for new resources. They are well funded and could very well be instrumental in unlocking the true value of Pilar. I am sure the Major is excited to see the drills turning on the Pilar Expansion Area as there are several key targets already identified. The summer mapping and soil sampling program should bring everything into clear focus.
My dad always took vacations during the quiet days of summer. I noticed he was always more relaxed and less engaged with the stock markets during this time. The same cycle still applies today, the drills will be turning once family vacations are over, and when brokers and investors return to the office. But he also kept one eye open as he never knew when or what might be coming from the companies he was following.
He also said, "summer is a good time to pick up stock from people who become impatient and sell". The volume drop in Tocvan in recent weeks is an example of how this cycle is starting to play out.
He also said, "keep some cash available during this period as it is always a good time to average down or up your stock position".
There were some great fireworks on Canada Day and the 4th of July. I hope everyone enjoyed participating in these festive activities.