We are in the middle of summer and at the start of the Olympics. Trading was quiet yesterday with 41,000 shares and only 457,000 shares for the week.
A brief clip from this week's press release, "To date, the 2024 drill program has completed 3,268 meters across 26 drill holes. Core and RC Drilling are scheduled to resume by late summer. Over 3,700-meters are planned at Pilar for Resource Definition drilling this year. Surface geological mapping with rock and soil sampling is ongoing on the expansion area to define the outer limits of the mineralized footprint and refine new target areas for drilling."
The drills are resting due to the extreme heat in Mexico, and of course it has been very warm everywhere, with record average world temperatures recently set for two consecutive days.
The last of the 3 holes reported indicated mineralization was found in all step-out holes. With 26 holes completed, there is an additional 3,700 meters planned for Resource Definition starting later this summer depending on the weather.
The goal of the last 3 holes was to test out how far mineralization occurs, and check for "Elephants", and although he didn't find any large structures, Pilar is proving to be a very large structure with much to be explored back to the Main Zone. One just never knows what lies inbetween, however, I am betting that since mineralization extends this distance, there is a good probability of finding better results nearer the Main Zone.
I suspect Brodie will now return to resource definition to allow for a Maiden Resource Estimate. My guess is most of the next drilling will take place in and around the Main Zone where we can expect very good results since this area will be the focus for early production, and where significant assays have been encountered previously.
Don't forget, there has already been over 30,000 meters of drilling at Pilar which has already been digitized and should allow for resource calculations to be perforned relatively quickly.
"The exploration drilling results today round out our first phase of 2024 drilling, showcasing the continued extension of near-surface resources to the southeast" commented Brodie Sutherland, CEO. "The North Hill and Main Zone Trends now extend over 900-meters defined by drilling, while the 4-T Trend extends over 700-meters. All trends remain open to the southeast and northwest and the recent surface sampling highlights a broader footprint expanding to the east. Surface work is ongoing to further define and delineate key target areas across the expansion area. As we continue to work and prepare for the next phase of drilling which will include core and RC, a major producer continues to show very strong interest and remains active in the district. We know they are looking for resource potential that exceeds two million ounces of gold, their continued interest in the area confirms they see the same multi-million-ounce potential that we do. The remainder of the year will focus on resource definition drilling, target generation for expansion and permitting for pilot scale mining at Pilar."
It is interesting to here that the next phase of drilling will include both core and RC (reverse circulation) targets. It is also interesting to hear that the "Major" is still onsite and continues to show strong interest. I doubt Brodie would have mentioned this in a press release unless their field program wasn't positive. The Major is looking for a potential resource that exceeds two million ounces of gold. I am confident they wouldn't have taken this long if they weren't excited.
I am glad to see the next step before full scale production is permitting for pilot scale mining at Pilar. This permit can occur relatively quickly as compared to a full scale production permit, generally taking only a few months. I suspect we will see more regarding this in the fall.
This important phase will confirm grades and the extraction process, as well as create cash flow. If positive, this has the potential to raise capital with limited dilution to the share structure. I am very encouraged by the progress and direction Brodie is undertaking. We have to remember that a monthly cash infusion by Sorbie backstops and derisks Tocvan over the next two years. Not many companies have the luxury of a $62,500 guaranteed monthly cash injection alread held in escrow.
The summer is half over and very quiet. My attention is turning to the Olympics as I was a competitive swimmer in my younger years. I remember my father would put me on his back, submerge underwater, then swim along the deep bottom in the deep end all the way to the end of the pool.
I remember hearing him say, "hold your breath, keep your eyes open, and here we go". Those were great times in my life which led to 5 high school championships, many records, and heading to advanced swimming meets.
There are many great swimmers at this year's Olympic games, keep an eye on the Canadian women swimmer, 17-year old McIntosh. This is already her second Olympics, I hope she does well.