Mining
Friday, June 23rd, 2023 7:01 am EDT
Dear Alphastox Subscribers,
What a tumultuous past couple of months it’s been. With the volatility going on in the markets, the only thing that seems to be gaining any traction is if your stock has “A.I” attached to its name. Artificial Intelligence has been taking the world by storm and investors are chomping at the bit to get in on the action. Companies like Nvidia, Apple, Amazon, Microsoft, all companies with AI powered capabilities are all trading near all time highs while the other 80% of the S&P500 index can’t seem to get off their 52-week lows. The one question so many investors are asking is “how long is this craze going to last?” my answer is simple: nobody knows…I have absolutely no clue. Ride the wave while it lasts and see what happens has been the best advice someone gave me – don’t fight the tide so that’s exactly what I’m doing. It seems like that’s exactly what some of the richest people in the world are doing as well. Just a few days ago, CNBC highlighted a very interesting story. They did a quick feature on a company called KoBold Metals: https://www.koboldmetals.com/ . It’s a mining exploration company based in the United States that just raised $200M on a $2.2Bn valuation with no resource at all, purely exploration, actively looking for cobalt, lithium, copper and other scarce elements. So how is it possible that a mining explorer is able to raise so much money from the likes of Bill Gates, Jack Ma (founder of Alibaba), Jeff Bezos and others, while so many junior Canadian explorers are dwindling on the sidelines hardly able to raise a million dollars…”A.I” (more on the story here: https://www.mining.com/bill-gates-backed-kobold-metals-is-the-silicon-valleys-newest-unicorn/ ). Apparently, KoBold has developed a proprietary technology using artificial intelligence that will be able to detect where the minerals lie underground. Crazy stuff. Which tells me that the big boys are getting into the exploration and even though so many juniors here in Canada are seeing their stocks trading at all time lows with little prospects of a future, we shouldn’t forget about some of the hidden gems that could potentially be poised for a great future.
One of those gems, in my opinion, is TomaGold (TSXV:LOT).
It’s a tough time to be an investor right now, but with great risk comes great reward. Fortunes are made in times of heartbreak and disasters and as Warren Buffett says “be greedy when others are fearful and fearful when others are greedy”, I think today is the perfect time to be invested in long duration assets with a long-term view.
As I’ve said many times before, while so many investors are asking themselves if keeping their cash in a bank is a safe place, there is one asset class that has been a safe haven for investors for the past 1000 years. GOLD. GOLD, GOLD, GOLD. It’s been an asset that has stayed the test of time for so many years. Even bitcoin bulls are slowly moving away from their digital assets and moving into something more tangible, and you can see it with the rise of the price of gold over the past couple of weeks hitting almost $2,000 per ounce! Investors are flocking towards the metal as they see GOLD as the only safe asset they can invest in and sleep at night.
But the trade isn’t just GOLD. It’s in the miners – that’s where we get the most leverage and it’s in the junior miners where investors can see potential 5-10 baggers over the course of the year. Even Robert Kiyosaki, a real-estate mogul and author of “Rich Dad Poor Dad” is putting his money in gold, check it out: https://www.youtube.com/shorts/0eR9r4lMRnQ
One of the best junior miners in my opinion is run by a very charismatic leader that will stop at nothing to generate substantial value for his shareholders. David Grondin is the CEO of TomaGold Corp. (TSXV:LOT) holds interests in five gold properties near the Chibougamau mining camp in northern Quebec: Obalski, Monster Lake East, Monster Lake West, Hazeur and Doda Lake, as well as a 24.5% interest through a joint venture with Evolution Mining Ltd. and New Gold Inc. in the Baird property, located near the Red Lake mining camp in Ontario. In addition, it owns a 100% interest in a lithium property and in the Star Lake rare earth elements property, located in the James Bay region of Quebec.
Here’s a brief background on David –
David Grondin has worked in the financial and mining sectors for over 20 years. He has been President and CEO of the Company since December 2011 and is a director of AM Resources. He was President and CEO of NQ Exploration Inc. from October 2007 to May 2018. He also acted as a financial analyst for CTI Capital Inc. from 1997 to 2000. Mr. Grondin has a bachelor degree in business administration (finance) from HEC Montréal and experience in initial public offerings, mergers and acquisitions and reverse takeovers.
More on his team here: https://www.tomagoldcorp.com/en/company/management/
At a $3M market cap company and close to $3M in cash and marketable securities, Toma is getting ZERO value for their exploration assets.
Toma’s flagship project is their Obalski Project. The property consists of 74 claims covering an area of 2,740 hectares or 27 km2, located approximately 2 km south of Chibougamau, Quebec, in the heart of the Chibougamau mining camp. More on Obalski here: https://www.tomagoldcorp.com/en/projects/#ptabs-1
In addition to this asset, Toma has a very interesting Rare Earth Project called “Star Lake” as well as a lithium asset called “Brisk”. Toma holds a 100% interest in 214 claims over an area of 10,906 ha (or 109 km2), the largest land position in the sector. The Star Lake property has been the subject of geophysical surveys that have identified six rare earth element showings. It is characterized by multiple under-explored outcropping pegmatite intrusions that host unusual enrichment of rare earth elements, and is located in one of the world’s most mining-friendly jurisdictions, with ample green energy sources.
The Brisk Extension encompasses 107 claims covering a total area of 5,487 hectares (or 55 km2). These claims are located near Zones 1, 2, 3 and 6 of the James Bay Lithium Brisk project optioned by Monger Gold and along and south of the Trans-Taiga regional road and power line infrastructure, approximately 5 km from the LG-3 airport.
These claims are also located on the same geological corridor as the Cancet (5.6% Li2O over 36.5 m) and Corvette (1.65% Li2O over 159.7 m) projects, held by Winsome Resources and Patriot Battery Metals respectively, further east. The property was identified for its prospective nature of lithium mineralization in pegmatite dykes during the compilation of geological data by Noranda Royalties. The property hosts several known pegmatite dyke outcrops. Historically, there has been no lithium exploration activity on the property, with the exception of a historical spodumene-bearing pegmatite showing that was identified by the Quebec Ministry of Energy and Natural Resources on June 17, 2015.
In January of this year, the company announced results from a sampling program they did which returned figures as high as 3.95% TREO. Given these positive results, more follow-up work was completed and now the company is just waiting anxiously for the results. They should be coming out soon so make sure you stay tuned. The prospecting program on the Star Lake and Brisk properties has begun. These two properties are favourably located in the same geological context as the projects owned by Winsome Resources and Patriot Battery Metals (Brisk) and Brunswick Exploration (Star Lake). The work is being carried out by the Dahrouge Group. The Dahrouge Group were the prospectors who found the Corvette Lithium asset in Quebec that has allowed Patriot Battery Metals (TSXV:PMET) to go from $0.40 to over $17/share! Dahrouge and his crew know what they’re doing, especially when it comes to the lithium space and wouldn’t risk their name and repuitation if they didn’t believe the project had a shot.
Approximately three weeks of work is planned and consists mainly of identifying rock outcrops and collecting samples for analysis for lithium and rare earth elements
Toma has already proven that they’re able to find an asset, develop it and sell it to a much larger mining company (IamGold and their Monster Lake Project). Obalski is their next focus and you can be sure that IamGold and other larger mining companies are keeping a close eye on how their exploration efforts pan out this year.
As I mentioned above, LOT.V is getting absolutely ZERO value for ALL their projects. With around $2M in cash and marketable securities, Toma is perfectly positioned to generate substantial returns for their shareholders especially as the macro events continue to go their way.
More on all their projects here: https://www.tomagoldcorp.com/en/projects/
I am not sure if you all remember, but I first got involved with Toma back in 2012. David was still at the helm then. At that time, the mining market was in the toilet and yet David was able to turn Toma into one of the most excited junior gold companies on the market, taking the stock from $0.10 to a high of around $0.40 (if I remember correctly). He made a lot of investors a lot of money and he’s back at it again. Toma is his baby and he will stop at nothing to turn Toma into a massive success. With the price of gold skyrocketing and more and more savvy investors thinking it will go even higher, LOT.V needs to be on your radar screens right now.
There are a lot of videos of much smarter people than myself that think that the price of gold is going higher, just watch the video below:
Jan Van Eck: We’re at very beginning of several-year bull cycle for gold and bitcoin
https://www.youtube.com/watch?v=TrRrWNyJpCM
Want to learn more about Toma? Don’t hesitate to get in touch with David Grondin at dgrondin@tomagoldcorp.com
…and as always, I look forward to hearing from you.
Best,
Etienne
Disclosure: TomaGold is an advertising client and the author of this article has been compensated
