Tocvan Ventures Corp. (CSE:TOC) told investors it has submitted its exercise notice to Colibri Resources for a majority ownership stake of 51% in the Pilar gold-silver project in Sonora, Mexico.
The company said in a statement that it also plans to exercise its right to purchase the remaining 49% of the project, subject to the conditions of a property option agreement.
Due diligence for its recently-announced land expansion surrounding Pilar is also complete, with a definitive agreement expected to be concluded in the coming weeks, Tocvan said, adding that recent placer activity, historic workings, and prospective geology all indicate the area is highly prospective for gold and silver.
“This is a major milestone as we advance towards full ownership of Pilar and consolidate the district with its exciting gold and silver potential,” CEO Brodie Sutherland commented.
“Over the last four years, we have been able to unlock the potential of Pilar through surface work, drilling, and metallurgical studies. We now look to make the next steps towards expanding the potential of the district through quickly advancing discovery drilling across the area. Our goal is to build out a resource estimate at Pilar and expand on that potential through additional discoveries across the vast expansion area.”
Tocvan said it plans to restart field operations at the close of the expansion acquisition to advance new target areas already identified quickly towards drill targeting.
It is aiming for 2,000 meters (m) of drilling at Pilar and within the new expansion area before year-end, with work related to mine permitting also scheduled for the fourth quarter to prepare for the final permit application.
Continued metallurgical work is planned to advance the understanding of gravity and agitated leach methods for gold and silver recovery. Aggressive drill targeting aimed at driving new discovery and infill drilling at Pilar is scheduled for 2024, Tocvan said.
Meanwhile, the company said it will return to the El Picacho gold-silver project in Sonora for groundwork to advance the next phase of drilling. Beyond follow-up at the San Ramon target where the company drilled 44.2m at 0.6 grams per ton gold, it noted that 6 kilometres of prospective trend remains untested and open for drilling.
Tocvan was created to take advantage of the prolonged downturn in the junior mining exploration sector, by identifying and negotiating interest in opportunities where management feels they can build upon previous success.
Contact the author at stephen.gunnion@proactiveinvestors.com