Sharp increase expected
Just did Tocvan Ventures Corp. (CSE: TOC; WKN: A2PE64) announced that they have discovered an extremely large anomaly on their Pilar property in Mexico that could result in a multi-million ounce gold deposit. To prove this, Tocvan will start a major drilling program as early as next month! The volume of trade in Canada is already increasing noticeably and a strong upward trend can be expected from today. The way to the top will be free by next month at the latest, because then the outstanding $ 0.20 warrants (stock options) that have previously capped the price will expire. Enclosed today’s news, including the initial analysis from May 2020: Tocvan announces the first results of the structural analysis of the Pilar gold-silver project in Sonora, Mexico: large structures or “pipes” for liquids with gold-silver mineral enrichment determined
Calgary, Alberta, August 25, 2020 – Tocvan Ventures Corp. (CSE: “TOC”) (“Tocvan” or the “Company”) is pleased to announce the first results of the structural analysis of the Pilar gold-silver project in Sonora, Mexico.
Important large structures (“conduits”) of considerable depth that contain additional structures favorable to gold-silver mineralization have been identified in the property. These significant structures extend over a large area in a northwest-southeast direction on the property.
The structural analyzes for the Pilar project have been started, taking into account all data collected so far. The objective here is to identify drill targets that have the potential to intersect similar grades to the historic S-10 drill hole (1.7 oz./t gold over 16.5 meters) in the North Hill Zone (Figure 1b). The gold and silver mineralization occurs within and around structures. The structures serve as channels or conduits for the flow and deposition of mineral-rich fluids.
The initial examination of the 3-D inversion of the magnetic susceptibility data revealed prominent important large structures generally associated with “conduit” systems for the flow and deposition of gold and silver containing fluids. It should be noted that epithermal mineralization such as that found in the Pilar Project is dependent on structures (“conduits”) to form a gold and silver deposit. These structures can be shear zones, faults, breccias, rotational cracks in shear zones, and other dilation structures. Where there are stretch structures and other openings, heated liquids containing gold / silver can deposit.
To ensure a high-quality analysis, two consulting firms were entrusted with starting a joint investigation: Marion Iseppi, Ph.D., structural geologist at SRK Consulting (Canada) Inc., and Jeremy S. Brett, M.Sc., P.Geo . senior geophysical consultant at MPH Consulting Limited, responsible.
SRK says: “SRK Consulting has initiated a structural analysis of the Pilar concession area. A preliminary structural analysis of the recently collected data from the soil magnetic surveys and the induced polarization (IP) surveys revealed several areas of structural complexity, usually representing zones of high permeability or post-mineral faults that displace the supergene profile. They could also represent a post-mineral reactivation of important syn mineralization structures. ”(Supergen describes a mineral enrichment process in which metals are known to be deposited in higher concentrations than the primary ore.)
The first results indicate an important large structure in the northwest-southeast direction. This structure measures approximately 250 m by 1,000 m and has vertical dimensions in the range of several hundred meters that extend to the surface (Figures 1a, 2). Within this primary structural corridor there are additional structures with north-south orientation that are approximately 300 m long (Figure 1a). In a previous structural assessment, the northwest-southeast structure was described as a structural corridor that includes a shear zone with rotational features. Such structures provide excellent conduits for the flow and deposition of metal / mineral rich fluids.
Figure 1a (above) Figure 1b (below). 3-D inversion section of the magnetic susceptibility at a depth of around 350 m. Northwest-Southeast Shear Zone Corridor containing structures in a north-south orientation and the zones of mineralization (North Hill, Main, 4-Trench) delineated by drilling for more than 17,700 meters.
Figures 1a and 1b show a top view of a 3-D inversion section of the magnetic susceptibility at a depth of around 350 m and the complete voxel model of the magnetic inversion. When comparing Figure 1a with Figure 1b, it becomes clear that the vast majority of historical drilling only extends to shallow depths of up to approximately 125 m in the Main Zone and the North Hill Zone (location of drill hole S-10, the 1, 7 oz./t gold and silver delivered over 16.5 m). There is a clear opportunity to intersect mineralized targets that extend at depth in accordance with an epithermal mineralization model. The very real possibility and objective is to intersect high grade gold and silver mineralization as in historic drill hole S-10.
Figure 2. 3-D inversion of magnetic susceptibility. Northwest-Southeast Shear Zone Corridor containing structures in a north-south orientation at a depth of approximately 350 meters.
Commented, CEO Derek Wood said, “We are very excited that the work carried out on each phase of exploration since negotiating the option to acquire all of the Pilar Property has exceeded expectations and has exceeded our understanding and potential of the property in both the short term Production as well as hosting a world-class discovery. Previous drilling has identified a high grade system at the surface in the northwest portion of the property, the Main Zone. Upcoming drilling will focus on expanding areas of known high-grade gold and silver mineralization at the surface within the areas where previously drill success was recorded and will also test newly discovered “near surface” zones. They will also include deeper drilling to test the mineralization around the newly identified IP anomaly. I would like to thank Mark Smethurst for his dedication to moving exploration activities on time and on budget despite the difficulties of the Covid-19 pandemic. “
The current health situation at global level requires an adjustment of the work programs; Health and safety come first.
The current health recommendation for families and groups is to self-isolate and exercise caution when recommendations from health officials become a challenge to social distancing. Many countries are already starting to allow companies to resume operations. Isolation is an integral part of mineral development programs.
About the Pilar Property
The Pilar gold-silver property has been identified as a structurally limited, low sulfidation epithermal project hosted in andesite and rhyolite rocks. Hydrothermal fluids in which gold, silver and other minerals are dissolved are transported through the pre-existing structures, deposit outside the fluids and penetrate into the structures and into the surrounding host rock. Three zones of mineralization have been identified in the northwest portion of the property based on historical open air work and drilling. They are referred to as the “Main Zone”, “North Hill” and “4 Trench”. Structural features and zones of mineralization within the structures follow a mineralization trend that, as a whole, runs from northwest to southeast. To date, more than 17,700 meters of drilling has been completed. Notable results from previous operators are given below:
– Core and RC drilling over 17,700 meters. Here are the most important results (all lengths correspond to the thickness that was determined during the drilling):
– 0.73 g / t Au over 40 m
– 0.75 g / t Au over 61 meters
– 17.3 g / t Au over 1.5 m
– 5.27 g / t Au over 3 meters
– 53.47 g / t Au & 53.4 g / t Ag over 16 meters
– 9.64 g / t Au over 13 meters
– 10.6 g / t Au & 37.8 g / t Ag over 9 m
– Taking of channel samples from the surface and from trenches at 2,650 m. Here are the most important key data:
– 55 g / t Au over 3 m
– 28.6 g / t Au over 6 m
– 3.39 g / t Au over 50 meters
– Assay results of soil samples from areas not yet drilled indicate that mineralization is spreading southeast from the Main Zone, North Hill Zone and 4-Trench Zone
Additional areas of mineralization were identified based on the analysis of grab samples taken from shallow rock. This extends the known mineralization trends and a second mineralization trend drifting in northwest-southeast direction is presented in the east, parallel to the trend zone described above; the gold-silver mineralization is spread across the property from north to south (see press release January 7, 2020). The main results from this particular measurement are given below:
The technical information in this news release relating to geological data and its interpretation has been prepared by Mark T. Smethurst, P.Geo., COO and a director of the company, in his capacity as a qualified person for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects created.
About Tocvan Ventures Corp.
Tocvan is a well-structured mining company specializing in exploration. Tocvan was formed to take advantage of the ongoing downturn in junior mining explorers. In doing so, opportunities to participate in projects are explored or negotiated, where the company management sees opportunities to build on previous successes. Tocvan Ventures currently has around 17.7 million shares outstanding and is currently in the process of buying into two fascinating projects. The company’s management considers the Pilar gold project in the Mexican state of Sonora and the Rogers Creek project in the southern Canadian province of British Columbia to be two extremely high-potential projects. Initial Rockstone Analysis May 2020:
The perfect gold project and the ideal share structure for a price increase tenfold (at least!)
The mood in the gold market is getting better and better. The gold price is rising in all currencies and some gold stocks are also performing strongly again. Now is the time to position yourself and equip your portfolio with a mix of physical precious metals and stocks from producers, budding producers and explorers. As explorers are known to make the greatest profit, I was looking for an undervalued candidate with manageable risk who met all the criteria to quickly become a “10-Bagger” in the last few weeks; i.e. can increase tenfold. And I have more than struck gold: Tocvan Ventures Corp.
After several videoconferences with Derek Wood (President and CEO of Tocvan) and his chief geologist Mark Smethurst (COO and “Qualified Person”) I started buying stocks in the market and I intend to make further portfolio shifts in Tocvan’s favor.
Normally I also like to take part in capital increases (so-called private placements), but Derek Wood made it clear to me that no financing is imminent and that he shies away from watering down like the devil. I like that! As he knows all too well from his 25-year career with various banks and stockbrokers, it is dilution at low prices that destroy shareholder values.
A little over a year ago, on February 28, 2019, Derek Wood launched Tocvan, a company that he meticulously structured in order to offer shareholders the highest possible return from the start. I am convinced that his approach will be successful and that the share will rise to several euros because there are only very few shares available on the market (currently 17.7 million shares).
In order to achieve a tenfold increase in the share price, the share has to rise to around € 1.40, which would mean the company would be valued at € 25 million – a market capitalization that should be exceeded many times over with the Pilar gold project in Mexico. In the coming months.
On the Pilar property there are numerous veins as weathered oxide zones on the surface of the earth that are mineralized with gold and silver and can be mined almost immediately. The photo from November 2019 shows a gold-silver-oxide zone in the property part Four trench.
Gold-silver veins are also located in the property part North Hill as oxide ore zones directly on the earth’s surface.
The Tocvan team has examined and assessed more than 150 projects. Of all of them, they liked the Pilar gold project in northern Mexico by far, after which it was acquired in September 2019. There were two main reasons for this: 1.) The advanced project can be brought into production quickly
• There is already extensive data on the gold-silver deposit occurring near the earth’s surface.
• Wells with a total length of more than 17,700 m have already taken place on the property.
• The previous project operators were listed on the stock exchange and primarily pursued the goal of achieving good drilling results in order to stay afloat with diluting financings during difficult times in the gold market (2018: Gold fell from $ 1,370 to $ 1,167; 2010-2013: Gold fell from $ 1924 to $ 1180; 1995-1997: Gold fell from $ 420 to $ 283).
• In the past, there was therefore no holistic approach to bringing the deposit into production. New gold mines typically come into operation while gold prices are rising. Tocvan is the first company Pilar can get into production during a bull gold market.
• Rather than undertaking extensive (i.e., costly) drilling programs to publish resource estimate after resource estimate, Tocvan takes a different approach to protecting shareholders from permanent dilution when stock prices are low.
• Drilling should only take place to a limited extent (i.e. targeted) in order to obtain a better understanding of the deposit with a view to the start of production. Modern 3D models should show where and how dismantling can take place first. Initially the mining of so-called “bulk samples” with several hundred to thousand tons of ore is planned in order to produce gold-silver Doré bars for sale.
• The management has valuable local contacts to rent mobile processing equipment (stone mill and concentrator for the production of Doré bars). The material on the earth’s surface is favorably so-called oxide ore, which, in contrast to deeper-lying sulphide ore, does not require complex chemical leaching including waste basins.
• In the state capital Hermosillo (approx. 2 hours drive away) the Doré bars can be sold to smelters. The cash flow is to be used for further drilling and resource estimates (instead of via dilution), as well as for investments in own processing plants.
2018 was Mexico the 8th largest gold producer and the largest silver producer in the world. The state of Sonora has by far the most gold in Mexico (37% of the country’s total gold production comes from Sonora).
The Pilar property is located near (approx. 1 hour drive on Highway # 16) the La Colorada gold-silver minethat of Argonaut Gold Inc. (TSX: AR; Market Personal-Financial.comization: $ 262M CAD) 2.) Pilar is very similar to the La Colorada gold-silver mine and the Santana gold project
• Argonaut Gold Inc. owns the La Colorada mine including extensive, modern infrastructure on site: processing plants for oxide and sulphide ores, waste basins, mining vehicles, etc.
Argonaut Gold Inc.’s La Colorada open pit mine
Argonaut Gold Inc.’s mining infrastructure
Argonaut Gold Inc.
Argonaut Gold Inc.
• In 2019, the La Colorada open pit produced 55,338 ounces of gold equivalents at a cost of around $ 1000 USD / ounce. Gold is the main source of income, while silver is a lucrative by-product.
• There are currently around 1 million ounces of gold and 15 million ounces of silver in the ground (“probable” reserves plus “indicated” and “inferred” resources). The average grades are between 0.59 and 0.65 g / t gold, as well as in the range of 8 and 11 g / t silver.
• The drilling results from La Colorada are comparable to those from Pilar.
• La Colorada was one of the largest silver reserves in the world at 61 million ounces. However, that estimate is from 2012, shortly after the mine was acquired by Argonaut and has been operational ever since.
• It is known that La Colorada will be exhausted in the next few years. In early 2018 it was estimated that the mine life would be 5 years, i.e. no later than New ore will be needed at the end of 2022 to keep the capital-intensive infrastructure running.
• Big mining companies like Argonaut are known to have been early search for new ore supplies, taking over projects from other explorers as the preferred mode (rather than exploring oneself).
• No later than as soon as Tocvan proves that the ore from Pilar can be mined profitably on a small scale and, if necessary, an initial resource estimate shows the potential for growth, Tocvan can be traded as a serious takeover candidate (especially for Argonaut).
• However, the most recent example shows Minera Alamos Inc. (TSX.V: MAI; Market Personal-Financial.comization: $ 167M CAD)that no resource estimate is necessary for such a high company valuation. The company recently signed a $ 5 million royalty deal on April 3rd Osisko Gold Royalties Ltd. (TSX: OR; market cap: $ 2.1 billion CAD) to lock. In January, Osisko bought shares in Minera Alamos for $ 6 million CAD.
• Rather, the example of Minera Alamos shows that production can be started quickly even without a resource estimate. Minera Alamos only drilled a few holes and dismantled a bulk sample, whereupon the production decision was made and Osisko got involved.
• Minera Alamos owns that Santana gold project in northeastern Sonora in Mexico. The phase 1 drill program (only 10 holes with a total length of 1,500 m) took place in 2018 and was the first drill program since 2011. The 2018 holes were able to drill up to 0.65 g / t gold over 93.5 meters and 1.05 g / t gold over 80.4 meters prove. These are very good results for an open pit! If you compare these results with the drilling results of Pilar, then the huge share price potential of Tocvan becomes clear:
• In 2018 a drill program took place in the Pilar Main Zone which 0.75 g / t gold over 61.5 meters proved, as well 0.73 g / t gold over 40.5 meters. Additional holes also showed high grade mineralization 8.16 g / t gold over 9 meters, 5.64 g / t gold over 13.5 meters and 33.4 g / t gold over 1.5 meters.
• 2013 drilling 0.94 g / t gold over 66 meters achieve. 2010 became 1.31 g / t gold over 40.5 meters and 0.58 g / t gold over 60 meters pierced.
• The Pilar drill results impressively show that a comparison with Minera Alamos is justified and that the shares of Tocvan are (still) extremely undervalued. To have the same company valuation as Minera Alamos, the Tocvan share would have to be from currently $ 0.22 to $ 9.44 CAD increase! That would be a 43 digger, which means you can multiply your money 43 times.
• I don’t know of any other gold stock that currently has such great appreciation potential as Tocvan, which is why I bought stocks. Even if Tocvan had 35 million shares in the market (instead of 17.7 million currently), the share price would be $ 4.77 stand to have the same rating as Minera Alamos, which is still a multiplication of your money.
Previous Pilar project operators only focused on drilling in the Main Zone, as well as a little in the property parts North Hill and Four trench. Tocvan discovered high-grade gold, silver and lead in parallel zones (yellow) using sampling programs in late 2019. In the beginning, up to 5 small opencast mines would be possible, which later can be connected to one large opencast mine (approx. 1,000 x 800 m), as the material in between may also be mineralized.
Even today, an opencast mine with dimensions of 600 x 500 m would be possible to cover the 3 zones (North Hill, Main, Four Trench), whereby initially the ore from individual zones is mined, which occurs directly on the earth’s surface.
In November 2019, part of the Tocvan team explored the Pilar property. Left: Derek Wood (President and CEO of Tocvan); Besides: Juan Felipe (a long-time acquaintance and local entrepreneur who will assist with exploration programs and the procurement of staff, supplies and processing equipment); Besides: Brodie Sutherland (Geologist and independent director of Tocvan); right: Mark Smethurst (COO and Chief Geologist of Tocvan).
Excavations (“trenching”) showed Four trenchthat gold-silver containing ore occurs directly on the earth’s surface.
Gold-silver vein emerging from the earth’s surface in a weathered, oxidized state in the North Hill Zone.
The oxide zone in the Main Zone shows strong gold-silver mineralization directly on the earth’s surface.
In the North Hill Zone gold-silver veins occur as an oxide zone.
There are already routes to previous drill locations on the Pilar property.
Entrance to a historic mining shaft in the Main Zone.
Entrance to a historic mining shaft in the Four trench zone.
There is a building on the Pilar property that holds the many drill cores from previous drill programs.
The Pilar property has access to electricity.
Conclusion and outlook
Explorers can benefit even more from a rising gold price because some investors get out of adversely affected producers and e.g. invest in budding gold producers and gold explorers. In addition, there is a decline in supply due to the closure of many gold mines (while physical demand is recording record sales worldwide), so the framework conditions are perfect for a sharply rising gold price.
Now to bet on the right (i.e. heavily undervalued) gold explorers should turn out to be one of the most lucrative buying opportunities in stock market history – especially if the investor would be satisfied with a market capitalization of € 25-50 million in terms of returns (as I did in the case by Tocvan). Such company valuations have been not uncommon even among poor, inactive gold explorers during the recent bull gold markets. And this initial analysis and the following reports are intended to emphasize that Tocvan is a completely different caliber.
The share price of Argonaut Gold Inc. (TSX: AR; Market Personal-Financial.comization: $ 262M CAD) generally makes it clear that investing in producers can be very risky. Although the USD gold price has risen 20% since August 2019, Argonaut stock lost nearly half of its value.
A poorly performing share in a gold producer increasingly forces management to take action and e.g. Acquiring new projects in order to convince investors with growth prospects. The pressure is all the greater when it is also known that their mines will be exhausted in the coming years and that other large gold companies, such as B. Osisko Gold Royalties Ltd. (TSX: OR; market cap: $ 2.1 billion CAD)to participate in budding gold producers, as was the case recently with the one also active in Sonora, Mexico Minera Alamos Inc. (TSX.V: MAI; Market Personal-Financial.comization: $ 167M CAD).
The fact that Minera Alamos, as a prospective gold producer, has a better share price performance and an almost comparable company valuation as the neighboring producer Argonaut, without resource estimation, without extensive drilling programs and without mining infrastructure, illustrates the current preference of investors.
Overall, these comparative examples underline that an investment in Tocvan Ventures Corp. (CSE: TOC; market capitalization: $ 3.9M CAD) offers exceptionally good chances of becoming a strong performing gold stock in the coming months. Thanks to the few shares available in the market, a rapidly rising share price should come as no surprise, especially when investors and large gold companies realize that Tocvan has a gold project with Pilar that is comparable to La Colorada (Argonaut) and Santana (Minera Alamos).
The question that investors should be asking themselves today: Who will inquire about a participation in Tocvan first: Argonaut, Osisko or Minera Alamos? Or is it another big gold company that recognizes this opportunity and wants to forestall all three?
In view of the extremely low stock market valuation and the upcoming exploration and test production work, Tocvan is in a strong negotiating position not to have to accept the first (friendly) investment offer that comes with it. A rejection on the part of Tocvan could, however, quickly lead to aggressive (unfriendly) takeover attempts, in which case a tight shareholder structure with strong hands would be advantageous in order to delay a takeover as long as possible so that the company valuation can ultimately rise to at least € 250 million (100 Excavator). Company details
Tocvan Ventures Corp.
Suite 1150 Iveagh House,
707 – 7th Avenue S.W.
Calgary, Alberta, Canada T2P 3H6
Shares in the market: 18,226,927
Canada Symbol (CSE): TOC
Current Price: $ 0.21 CAD (8/24/2020)
Market Personal-Financial.comization: $ 4M CAD
Germany Symbol / WKN (Frankfurt): TV3 / A2PE64
Current Price: € 0.12 EUR (08/24/2020)
Market capitalization: € 2 million contact
Stephan Bogner (Dipl. Kfm.)
8260 Stein am Rhein, Switzerland
Disclaimer: Please read the full disclaimer in the full research report as a PDF on the Rockstone Research website, as fundamental risks and conflicts of interest prevail. The author, Stephan Bogner, owns shares in Tocvan Ventures Corp. and is paid for the local execution and distribution. Although the author is not commissioned and paid directly by the company, payment is made by third parties, so that there is a clear conflict of interest. The license rights for the cover picture were taken from christitzeimaging.com acquired.
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