Can TomaGold repeat its success without Quinto Real?
by Greg Klein
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Will fortune treat this company so favourably a second time? David Grondin thinks it might. As president/CEO of TomaGold Corp TSXV:LOT, he’s already seen spectacular success at Quebec’s Monster Lake, a repetitive source of high-grade gold assays bankrolled by joint venture partner Quinto Real Capital TSXV:QIT. Now he’s planning a simultaneous drill campaign on TomaGold’s adjacent, 100%-held Winchester property.
Lying on the same trend, the two properties have similarities, Grondin says. Like the 3,336-hectare Monster, the 1,070-hectare Winchester had originally been drilled at shallow depths. It wasn’t until Monster was drilled deeper that the big discovery was found. But Winchester’s mineralized corridor, “instead of being five to 15 metres wide like Monster, is 60 to 100 metres wide.” Historic results show base metals potential too, he points out. “So we think Winchester can be a big driver for the company too. We’ll start drilling the same time as Monster, so it’ll be highly cost-effective. It should create a lot of new interest in the company, so we’re excited about that.”
As if TomaGold really needs new interest. Monster Lake first grabbed the market’s attention back in April 2012, with an assay of 237.6 grams per tonne gold over 5.7 metres. But relative calm set in while the company tested other targets at shallow depths. Then, in November, TomaGold met Quinto, a well-heeled company looking for a qualifying transaction. The two companies consummated their JV with a winter campaign focusing on the 325 zone, site of the April 2012 discovery, and going beyond 125 metres’ depth for the first time in Monster Lake’s drilling history. Another outburst of market enthusiasm greeted assays from three holes announced on February 20:
- 33.6 g/t gold over 5.85 metres, at a vertical depth of 217 metres
- 11.5 g/t over 5.3 metres, at a depth of 187 metres
- 42 g/t over 7.2 metres, at a depth of 278 metres.
Highlights from three more holes released March 8 showed:
- 42 g/t gold over 7.2 metres, at a vertical depth of 278 metres
- 33.6 g/t over 5.85 metres, at a depth of 217 metres
- 32.6 g/t over 6 metres, at a depth of 170 metres.
An April 22 batch included:
- 37.1 g/t gold over 4.8 metres, at a vertical depth of 235 metres
- 8.65 g/t over 11.3 metres, at a depth of 325 metres
- 7.3 g/t over 2.55 metres, at a depth of 330 metres.
True widths were estimated at 70% to 85%. Topcuts weren’t applied.
The February 20 assays shot TomaGold from $0.115 to $0.205. By March 8 the stock hit $0.41. Even more dramatic was Quinto. Previously flat at $0.04, its shares soared to $0.25 on February 20 and, on February 28, $0.98.
Grondin now plans another 4,000 metres beginning mid-May. But despite a short pause, the company’s capable of year-round drilling thanks to a “really brilliant” crew, he says. He also plans a surface bulk sample, pending permitting. As the maiden resource approaches Grondin expects to calculate a topcut to compensate for the high-grade nugget effect.
Meanwhile the next 4,000 metres will target the zone at depth and its extensions along strike, he says. “Then we’ll probably do some infill to classify some of the resource as indicated. If it’s still open at depth, we might then do another 2,000 or 3,000 metres. One way or another, the resource is going to be done by year-end.”
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