Happy New Year! Gold (“Au“) & silver (“Ag“) are off to a strong start, up 5% & 6%, respectively in January and up > 36% in the past year! Tocvan Ventures (CSE: TOC) / (OTCQB: TCVNF), with two projects in Sonora Mexico, remains a top idea.
Pundits & analysts note that Au is making an impressive move even as U.S. interest rates remain stubbornly high. Central banks, led by Poland, Turkey, India & China were significant buyers in 2024. Yet, one of my favorite statistics shows that on a per capita basis, China owns 1/15 as much Au as the U.S., and India just 1/55.
Unlike commodities such as lithium, REEs, nickel & graphite that China dominates and can manipulate, it has little influence over the price of Au, unless it’s buying and driving the price higher!
I’m bullish on Au, but even more bullish on Ag. By now readers know that Ag demand from solar power installations (especially in China), is soaking up a significant portion of Ag supply. With the price of solar panels plummeting, growth in solar power is expected to remain robust.
Ag content per panel is falling due to thrifting efforts, but strong demand should hold steady for years to come. The Au: Ag ratio, which averages ~65:1 over the longer term, is currently at ~91:1. It was at 73:1 in May 2024. At 80:1, the Ag price would be $34.3/oz., and at 73:1 Ag would be $37.6/oz.
Tocvan has two exciting assets in Sonora, but its flagship is Gran Pilar. Grupo México, Newmont, Industrias Peñoles, BHP, Agnico, Freeport McMoRan, Fresnillo, Franco-Nevada, Wheaton Precious Metals, Royal Gold, Alamos Gold, Coeur Mining, Equinox Gold, Hecla Mining, Fortuna Mining, Minera Alamos & Orla Mining have interests in Sonora or Mexico.
Given the numerous mines, projects, and past producers surrounding Gran Pilar, management is optimistic a multi-million-ounce resource can be delineated. A large regional producer seemingly agrees. With C$2.1M of an ongoing private placement in the bank, and the remainder closing this month, Tocvan is off to the races.
CEO Brodie Sutherland has been in talks with at least one large regional player for over a year about a strategic partnership. A leading contender spent several months onsite conducting due diligence. Management is in talks with other players, and interest in the Company is high.
In November, hundreds of soil sample results in the southern portion of the 100%-owned Gran Pilar project were announced. Of 541 assays 62 (11.5%) contained over 0.1 g/t Au. Samples > 0.02 g/t Au are considered anomalous and worthy of follow-up. These samples point to drill targets, and Tocvan is currently drilling.
On January 22nd management announced additional sample assays that continue to generate strong drill targets. A total of 188 rock samples + 9 infill soil samples were analyzed from the Southern Block of the 100% controlled Expansion Area. Four new target areas have been identified spanning an area of 1.8 x 1.0 km.
An additional 2.1 x 1.4 km is unsampled to the east. Five km to the north in an area referred to as the North Alteration Zone, geochemical sampling, alteration mapping & satellite data interpretation suggest a separate, large-scale (3.2 x 1.5 km) epithermal target.
Core drilling continues at the Main Zone where four drill holes have been completed totaling over 408 meters. This program aims to build out a more robust geological model. Each hole completed has successfully intersected lithologies & structures known to host Au/Ag mineralization that will aid in modeling.
Note: The company cautions that these are visual indications, assay results are pending to quantify grades.
CEO Sutherland commented,
“Surface results are adding to our list of targets across the Southern Block, yielded encouraging results across a large footprint that extends two km east + 900 meters north of our Main Zone. What excites us about these targets is the fact that back at our Main Zone, historic sampling yielded similar results where there’s significant exposure across roadcuts & trenches. Here in the Expansion Area, we are only seeing naturally exposed windows into the subsurface, we will look to advance these through trenching & drilling this year.
Much of the southern area now has road access, speeding up the advancement of the area. As the Southern Block has kept us occupied, we have not yet begun to detail sample & evaluate the potential of the Northern Block. Early recon sampling has shown significant potential for a large-scale epithermal system, which we think is separate from what is observed to the south proximal to our Main Zone. Field observations lead us to believe the two areas represent potential for two separate mineralized systems across the project area greatly expanding the resource potential.”
Best soil samples from the Southern Zone…
Importantly, management believes these soil samples triple the mineralized footprint to over 3 sq. km of the 22 sq. km Gran Pillar project area. An initial (prepaid) nine-core drill hole (1,200-meter) program is well underway with partial JV partner Colibri Resources.
Tocvan & Colibri have a 51%/49% interest in the 105-hectare area that contains Pilar’s Main zone. Drilling is focused on the JV area across the Main zone to further develop the geological model needed for resource estimation.
Four RC holes have been completed, with assays expected within weeks. Several trends extending into the 100% controlled expansion area (over 2,100 hectares) are being tested for the first time, expanding the known boundary of mineralization.
Drilling is planned to continue throughout the year. A maiden mineral resource estimate is coming in 2Q/25, but it will be on a tiny portion, less than 3% (just the Main Zone), of the overall land package.
Gran Pilar drill highlights:
2024 RC drilling highlights include (all lengths are drilled thicknesses):
42.7 m at 1.0 g/t Au, incl. 3.1 m at 10.9 g/t;
56.4 m at 1.0 g/t Au, incl. 3.1 m at 14.7 g/t;
16.8 m at 0.8 g/t Au and 19 g/t Ag.
2022 phase III diamond drilling highlights include:
116.9 m at 1.2 g/t Au, incl. 10.2 m at 12 g/t Au and 23 g/t Ag;
108.9 m at 0.8 g/t Au, incl. 9.4 m at 7.6 g/t Au;
63.4 m at 0.6 g/t Au and 11 g/t Ag, incl. 29.9 m at 0.9 g/t Au and 18 g/t Ag.
2021 phase II RC drilling highlights include:
39.7 m at 1.0 g/t Au, incl. 1.5 m at 14.6 g/t Au;
47.7 m at 0.7 g/t Au, incl. 3 m at 5.6 g/t Au
2020 phase I RC drilling highlights include (all lengths are drilled thicknesses):
94.6 m at 1.6 g/t Au, incl. 9.2 m at 10.8 g/t Au and 38 g/t Ag;
41.2 m at 1.1 g/t Au, incl. 3.1 m at 6.0 g/t Au;
24.4 m at 2.5 g/t Au + 73 g/t Ag, (3.3 g/t Au Eq.)
incl.1.5 m at 33.4 g/t Au + 1,090 g/t Ag, (45.7 g/t Au Eq.)
15,000 m of historical core & RC drilling. Highlights include:
61.0 m at 0.8 g/t Au;
21.0 m at 38.3 g/t Au and 38 g/t Ag;
13.0 m at 9.6 g/t Au;
9.0 m at 10.2 g/t Au and 46 g/t Ag.
Pilar bulk sample summary:
62% recovery of Au over a 46-day leaching period;
Head grade calculated at 1.9 g/t Au + 7.0 g/t Ag; extracted grade calculated at 1.2 g/t Au + 3.0 g/t Ag;
Bulk sample only included coarse fraction of material (plus-three-quarter-inch to plus-one-eighth-inch);
Fine fraction (negative-one-eighth-inch) indicates rapid recovery with agitated leach:
Agitated bottle roll test returned rapid/high recovery: 80% recovery Au + 94% Ag after rapid 24-hour retention time.
Additional metallurgical studies:
Gravity recovery with agitated leach results of five composite samples returned;
95 to 99% recovery of Au;
73 to 97% recovery of Ag;
Includes recovery of 99% Au + 73% Ag from drill core composite at 120-metre depth.
Management is outlining a permitting & operations strategy for a pilot facility that will underpin a test mine scenario of up to 50,000 tonnes. Timelines & budgets are being prepared with the aim of moving forward this quarter. Test mining will provide key economic parameters and showcase mineral potential.
2025 is poised to be transformative for Tocvan Ventures. Yes, readers hear claims like that a lot, but Tocvan has strategic investor interest that would help unlock the vastly underexplored Gran Pilar via ample exploration funding. It has a proof-of-concept test-mining initiative on track for informative results in the second half of this year.
Although early-stage, management’s test mining plans place Tocvan head & shoulders above early-stage peers. Mexico remains a great place for Au/Ag, and Sonora is a particularly good jurisdiction. The peso which had been a headwind, has weakened 15% vs. the USD since last summer.
Dozens of much larger Au/Ag companies, many of which are listed above, should care about this year’s developments at Gran Pilar. Producers need to expand their production pipelines, Gran Pilar could add millions of ounces in the middle of a robust precious metals bull market.
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