Mining
Tuesday, August 16th, 2022 5:35 am EDT
Dear Alphastox Subscribers and Viewers,
WOW it’s been a while but I hope you’re doing well. I have re-started my blog and cannot wait to showcase some of the incredible names I have picked up coverage on.
I wanted to highlight a company that I have spoken about a lot five to six years ago but one that I haven’t shed light on for some time. TomaGold Corporation (TSXV:LOT), led by Mr. David Grondin, is one of Quebec’s premier gold exploration companies that has been around for years. It has proven that it is able to withstand several commodity cycles and come through the other side relatively painlessly. At a $10M market cap, LOT needs to be on your radar screen.
Why? Well, here are the facts:
- Approximately 3M$ in cash, liquid securities, and receivables
- 5 prospectus mining assets in Quebec and 1 in the Red Lake Mining District of Ontario
- Proven management team
- Proven and successful relationship with a mid-tier gold producer in IamGold
Even though prices of ALL commodities have taken a hit recently, once the cycle turns again and inflation fears rise, which in my opinion, is inevitable, these shares could significantly rise and LOT’s value could increase dramatically.
In addition to its balance sheet, TomaGold owns 100% of the Obalski property, a former gold-copper producer. The property consists of 74 claims and a mining concession covering an area of 2,724 hectares or 27 km2, located approximately 2 km south of Chibougamau, Quebec, in the heart of the Chibougamau mining camp.
The Obalski property hosts seven known mineralized zones, an 85-metre shaft and two ramps. Since the 1930s, more than 500 holes have been drilled on the property, for a total of more than 75,000 metres of drilling, most of which were less than 100 metres deep.
Toma recently drilled the property, a summary of which can be found here: https://www.tomagoldcorp.com/en/news-releases/tomagold-intersects-1-83-g-t-au-over-52-3-m-including-125-g-t-au-over-0-5-m-at-a-depth-of-350-m-at-obalski/
Monster Lake
TomaGold has a 100% interest in the Hazeur property. The Hazeur property consists of 61 mineral claims covering an area of 2,863 hectares, located on the southern border of the Monster Lake property. In November 2015, the Company initiated a high-definition magnetic VTEM-type airborne survey over the Monster Lake East and Hazeur properties. The survey revealed strong electromagnetic anomalies, including some that had already been identified by IAMGOLD on the Monster Lake property and which extend onto TomaGold’s properties.
In February 2018, a detailed compilation has begun on the Monster Lake East / Hazeur properties to correlate all the detailed airborne and ground geophysical survey data with recent stratigraphic and structural interpretations. Detailed information from recent drilling by TomaGold will also be incorporated to the interpretation, which will generate drilling recommendations.
Monster Lake East
TomaGold owns a 100% interest in the Monster Lake East property, which consists of 69 mineral claims covering an area of 4,269 hectares. The property is located directly to the east of the Monster Lake property and is divided into three sectors: Cookie Monster, Little Monster and Monster Island.
Exploration work by TomaGold
In November 2015, the Company initiated a high-definition magnetic VTEM-type airborne survey over the Monster Lake East and Hazeur properties. The survey revealed strong electromagnetic anomalies, including some that had already been identified by IAMGOLD on the Monster Lake property and which extend onto TomaGold’s properties.
In December 2015, TomaGold carried out an initial drilling program consisting of 11 holes totalling 1,783 metres. The goal of the program was to test some of the anomalies identified on the Monster Lake East property. The program showed that these anomalies are related to the presence of disseminated pyrite at the edge of pillow basalts, with some showing a strongly magnetic rock of gabbroic composition. The program returned gold assay results of below 1 g/t gold.
In February 2018, TomaGold carried out a partial airborne survey over a large copper geochemical anomaly that was discovered by a government survey. It also began cutting a grid of 20 km of lines, including a 4 km baseline, and retained Abitibi Geophysics to conduct a detailed IP survey to explore the anomaly to a depth of 300 m.
Furthermore, a detailed compilation has begun on the Monster Lake East / Hazeur properties to correlate all the detailed airborne and ground geophysical survey data with recent stratigraphic and structural interpretations. Detailed information from recent drilling by TomaGold will also be incorporated to the interpretation, which will generate drilling recommendations.
Monster Lake West
TomaGold owns a 100% interest in the Monster Lake West property, which consists of 21 mineral claims covering an area of 1,172.51 hectares. The property is located directly to the west of the Monster Lake property.
More information on all of Toma’s projects can be found on their website here: https://www.tomagoldcorp.com/en/ or their corporate presentation here: https://www.tomagoldcorp.com/wp-content/uploads/2022/07/TomaGold-Investor_Presentation-JULY2022_EN.pdf
At a $10M market cap and around $0.055/share, LOT is definitely one company that needs to be on your radar screen. Their team has proven time and time again that they are able to monetize good quality assets (Monster Lake sale to IamGold – https://www.globenewswire.com/news-release/2020/09/17/2095093/0/en/TomaGold-sells-Monster-Lake-interest-to-IAMGOLD.html#:~:text=IAMGOLD%20will%20pay%20TomaGold%20%248.5,in%20the%20Monster%20Lake%20Project. ) and add value for their shareholders. Mr. Grondin is an extremely hard worker that thrives when his shareholders win and he will stop at nothing to make this company a massive success. With enough cash and assets on their balance sheet to give his company a chance to turn one of their 5 assets potentially into another Monster Lake, a relationship with a mid-tier like IamGold and several successful Quebec-based investors with a big interest in the company, LOT needs to be on watch right now.
I will be making several updates on Toma so please make sure to stay tuned – I should have another one out in about the next 1-2 weeks.
As always, if you have any questions, please don’t hesitate to get in touch with me anytime. I look forward to hearing from you.
Best,
Etienne
