Dear Alphastox Subscribers,
I wanted to quickly turn your attention towards TomaGold Corp. (TSXV:LOT). In case some of you weren’t subscribers back in 2012, LOT.V was the very first junior mining company we featured at $0.10/share. A few months later, the stock ran to a high of around $0.40 on massive volume and Alphastox subscribers saw a 4X return in just under a few months. Even though we haven’t written about the company for a little while now, I have been following the company closely over the past several months and feel it’s at the brink of something very special – one that could potentially yield substantial value for its shareholders.
On August 10th 2017, Toma announced that their partner on their Monster Lake Project, IAMGOLD, subscribed for 19.98% on the company – $2.5M @ $0.09/share. That was a huge milestone and vote of confidence for the team and shareholders as it illustrates their partner’s belief in the project. IAMGOLD is the one drilling the asset, they’re the ones on the ground and can assess its potential first. Having a mid-tier gold producer as your largest shareholder and supporter is a real feather in David’s (Toma’s CEO) cap as well as for all Toma’s shareholders.
The stock is currently sitting at $0.07/share and has been trading around the $0.05-$0.075 range over the last six months as the cannabis and blockchain market made a massive move. As the focus begins to shift back towards the mining space (which it will just not sure when) investors will be looking for top quality assets with a strong cash and shareholder base – I think LOT.V fits all those characteristics. It is also David’s drive and passion for the asset that has taken the company to where it’s at today and that determination is only going to get stronger as we move into the fall…
The Monster Lake joint venture project hosts a National Instrument 43-101-compliant resource, effective as at Feb. 26, 2018, comprising 1,109,700 tonnes of inferred resources averaging 12.14 grams of gold per tonne for 433,300 ounces of contained gold (see news release dated March 28, 2018). The 2018 winter drilling program was designed to improve confidence in the continuity of the mineralization and to test for extensions of the known mineralized zones.
On June 14th, the company announced a set of new very high grade assay results from its winter drill program at Monster Lake. A total of 8,000 metres was completed and returned several extremely high grade results (news release attached below).
Craig MacDougall, senior vice-president, exploration, for Iamgold, stated: “We continue to be impressed with both the continuity and the high grades demonstrated by infill drilling of the 325 Megane zone. Although confirming resource extensions and expanding additional areas of mineralization has proved to be challenging for our exploration team, this style of mineralization remains an attractive exploration target. As I have said before, we believe the structural setting suggests favourable potential for the occurrence of additional mineralized shoots along the Monster Lake structural corridor and we continue to evaluate this setting for additional zones of mineralization.”
That’s what the market missed because ultimately, no one cares about mining projects right now…but that’s where I see the opportunity and obviously so did management. From June 21st-29th, TomaGold’s management has bought a total of 1,506,000 shares between $0.06-$0.07/share.
Stay tuned for an updated resource calculation in the coming months as well as a follow-up program. As I stated above, this isn’t a one day trade but rather a long-term investment in a team that has returned our subscribers substantial value in the past and the right arsenal to do it again.
The assay results are provided in Table 1 below and include the following highlights:
325 – Megane Zone and Main Shear Zone:
Includes: 1.30 metres grading 67.22 g/t gold
Includes: 1.09 metres grading 127.4 g/t gold
Includes: 0.70 metres grading 251.0 g/t gold
Includes: 1.75 metres grading 107.3 g/t gold
Includes: 0.74 metre grading 134.0 g/t gold
Craig MacDougall, Senior Vice President, Exploration for IAMGOLD, stated: “We continue to be impressed with both the continuity and the high grades demonstrated by infill drilling of the 325-Megane Zone. Although confirming resource extensions and expanding additional areas of mineralization has proved to be challenging for our exploration team, this style of mineralization remains an attractive exploration target. As I have said before, we believe the structural setting suggests favourable potential for the occurrence of additional mineralized shoots along the Monster Lake structural corridor and we continue to evaluate this setting for additional zones of mineralization.”
“The results obtained from this last drilling program continue to show solid high-grade gold potential for the Monster Lake project, which could translate into additional resources,” said David Grondin, President and CEO of TomaGold. “As we continue to see strong results from IAMGOLD, we believe that this asset could become extremely valuable for TomaGold.”
The Monster Lake project is held under an earn-in option to joint venture agreement with IAMGOLD, which holds an undivided 50% interest in the property, and holds an option to earn a further 25% undivided interest, for a total 75% undivided interest in the project, should it spend a total of C$10.0 million on the project within a seven year period, beginning January 1, 2015. Should a development decision be made by the joint venture, or should the joint venture declare commercial production, TomaGold would be entitled to a further C$1.0 million payment for each of these events.
On August 14, 2017, IAMGOLD subscribed for 27.7 million common shares of TomaGold from treasury representing 19.98% of the outstanding common shares of TomaGold. The common shares were purchased at a price of C$0.09 per common share, for an aggregate purchase price of C$2.5 million. Prior to the acquisition, IAMGOLD did not hold any common shares of TomaGold.
The “Qualified Person” responsible for the supervision of the preparation and review of this information is Marie-France Bugnon, P. Geo., General Manager Exploration. Marie-France is considered a “Qualified Person” for the purposes of National Instrument 43-101 with respect to the technical information being reported on. The technical information has been included herein with the consent and prior review of the above noted Qualified Person. The Qualified person has verified the data disclosed, and data underlying the information or opinions contained herein.
Samples are transported in sealed bags to ALS Minerals Laboratory located in Val-d´Or, Québec. Samples are coarse crushed to a -10 mesh and then a 1,000 gram split is pulverized to 95% passing -150 mesh. ALS Minerals processes analytical pulps directly at their facilities located in Val-d´Or which is ISO / IEC 17025 certified by the Standards Council of Canada. Samples are analyzed using a standard fire assay with a 50 gram charge with an Atomic Absorption (AA) finish. For samples that return assay values over 5.0 grams per tonne (g/t), another pulp is taken and fire assayed with a gravimetric finish. Core samples showing visible gold or samples which have returned values greater than 10.0 g/t are re-analyzed by pulp metallic analysis. IAMGOLD inserts blanks and certified reference standard in the sample sequence for quality control.
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