Things have changed in the mining sector. While smaller companies experienced a difficult few years when it came to getting the market’s attention and raising capital, a $4000 or $5000 gold price makes things much easier.
Tocvan Ventures (TOC.C) was able to capitalize on a financing window and secured a bought deal, raising C$10M in the process. The cash will come in handy to complete a meaningful drill program on both properties in Sonora, Mexico, while it will also enable Tocvan to complete its 50,000 tonnes heap leach pilot facility later this year. The data gathered from that 50,000 tonne sample will be meaningful to for instance determine recovery rates when material gets processed on a larger scale.
We sat down with CEO Brodie Sutherland to discuss the recent developments and his plans for the company in 2026.
Gran Pilar
Your 2026 drill program is now in full swing with over half a dozen holes completed by now. What are you trying to achieve with this drill program?
We’ve completed nine reverse-circulation holes across six new high-priority targets in the South Block, and the program is running exactly as planned. The goal is straightforward: expand the known mineralized footprint that extends directly from our historic Main Zone, test new structural and geochemical corridors with surface samples up to 21.2 g/t Au and over 2,000 g/t Ag, and generate the data needed for our maiden resource estimate later this year. This is all about de-risking the project while identifying additional high-grade feed for the pilot mine. We have up to 20,000 metres planned at Gran Pilar in 2026, and the early results will guide step-out and infill drilling. We are adding a second rig to the project next week.
You also recently completed a drone magnetic survey, what was the purpose of that?
The high-resolution drone magnetic survey was flown over our entire Gran Pilar project to map subsurface structures and alteration that control gold-silver mineralization. We’re already integrating that geophysical data with surface geochemistry and structural mapping to sharpen follow-up drill and trench targets. It’s a fast, cost-effective tool that has directly influenced several of the holes we just completed and will keep the drill bit on the highest-confidence targets.
You are gearing up for a 50,000 tonne pilot mine later this year. Let’s dig a bit deeper into that. Your pilot mine site is permitted for a 10 year period, but the initial 50,000 tonnes is just the first batch, right? Is there a maximum tonnage you are allowed to mine & process in the pilot plant?
The 10-year pilot-mine permit we received in August 2025 covers construction and operation of a 50,000-tonne capacity heap-leach facility. We are starting with that initial 50,000-tonne batch to prove metallurgy at scale (targeting >70 % recovery), generate real operating data and costs, and demonstrate cash-flow potential. The facility and pad were specifically permitted and designed around that 50,000-tonne scale, but the long-term approval gives us operational flexibility for phased or continued small-scale activity as we optimize. It’s a low-risk, staged approach that keeps everything within our fully permitted footprint. We can amend for additional throughput at any time.
Once we submitted our application it took approximately 32 days to get official approval, that gives us confidence we can adjust and amend in the future.
What’s the anticipated cost to get the pilot program fully up and running? Is your current cash position sufficient?
The pilot is intentionally low-capex, we’re using simple heap-leach and carbon-adsorption methods on a compact 4.5-hectare site with existing local infrastructure. A meaningful portion of the C$10 million bought-deal proceeds we just closed is earmarked for site preparation, crushing, stacking, and operational readiness. Post-financing our treasury is very healthy (over C$11.5 million of working capital), giving us more than enough runway to get the pilot into production later this year while continuing exploration. We estimate total pilot costs for build and operation to be approximately $1.5 to $1.8M USD.
Your heap leach pad is 17,600 square meters. How many tonnes could you reasonably stack on that within the currently permitted outline? And how is your access to water?
The 17,600 m² (1.76 ha) pad was engineered and permitted precisely for our 50,000-tonne pilot batch. We will stack in standard 4-6 meter lifts, and the design comfortably accommodates that tonnage. In theory, we could stack over 250,000 tonnes within that area. Water access is excellent, we have secured supply from the local community and ranch owners, and the wells are already incorporated into the permitted plan. We also just completed two water-monitoring wells as part of the environmental baseline, so we’re fully compliant and ready.
Would it be fair to assume you’d predominantly (solely?) use rock from your 100% owned land to be processed?
Yes, 100 % of the material for the pilot will come from our 100 %-controlled Gran Pilar claims, primarily the South Block where we already have excellent drilling data and surface exposure. Keeping it all on our own ground simplifies permitting, ownership, and logistics. We already have bulk sample data from our main zone, now we are looking to expand our knowledge of the greater area.
El Picacho
While we initially thought this project would be a bit on the backburner this year as the focus would be on the Gran Pilar exploration and pilot production, you have mentioned Tocvan plans to drill 6,000 meters at El Picacho this year. Will this be a follow-up on previous drill programs, or will you drill-test new zones?
El Picacho is very much part of our 2026 program, 6,000 metres are budgeted and fully permitted. It will be a smart mix: step-out and follow-up drilling on established targets (San Ramon, Jabali, etc.) where we already have encouraging 2022-2023 intercepts, plus new zones identified through surface work. Gran Pilar remains the flagship with the pilot and majority of metres, but El Picacho is only 18 km from San Francisco and sits in the same prolific Caborca Gold Belt, so we’re keeping momentum there too.
Who owns the nearby San Francisco gold mine now? At $5000 gold, there surely must be rumors the mine might restart?
Goldgroup Mining Inc. now owns 100 % of the San Francisco mine after acquiring the rights late 2025. With gold at these levels and the existing infrastructure already in place, Goldgroup has publicly stated plans to drill and advance a restart. It’s a positive development for the district and reinforces the potential we see at El Picacho within eyesight of the mine.
Corporate
You recently closed a C$10M bought deal, after initially announcing a C$6M placement size. Hindsight is always 20/20, but I think you were right to raise as much as you did. How did this bought deal happen behind the scenes? Were you approached? And what attracted the underwriters in Tocvan?
Investor demand drove the upsizing from the initial announcement all the way to C$10 million (including the full over-allotment). We actually had interest for significantly more but felt $10M was appropriate for a company of our size. Stifel Canada acted as sole underwriter and bookrunner. The strong interest came from our clear path to near-term production, fully permitted 50,000-tonne pilot, consistent drill success, low-capex model, and location in Sonora at a time when gold was/is trading well above US$4,000/oz. It was a combination of proactive outreach and inbound institutional appetite for a de-risked, near-production story in a top-tier jurisdiction. We initially introduced the company to Stifel in Q32025 through connections made by our Head of Corporate Development and his past involvement with Integra Resources and Integra Gold, after a few follow-on updates on progress we were approached in early Q1 2026 by Stifel. We were looking at other options, but the confidence Stifel had in the bought deal and their understanding of Mexico made for the best fit.
How does the recent bought deal impact the position of Sorbie Bornholm? What percentage of your shares do they currently own? And given your access to bought deals now, will there be more ‘creative’ financings with Sorbie Bornholm like you did in the past?
Sorbie Bornholm has been an outstanding long-term partner since 2022, providing flexible capital through our sharing agreements when traditional markets were tougher. The public bought deal dilutes all shareholders proportionally, including Sorbie, but their support and alignment remain strong.
Exact current ownership percentage is not something we disclose in detail outside of regulatory filings, but they continue to back our vision and remain one of our largest shareholders. As we now have access to efficient bought-deal financing and broader institutional capital, we expect to rely more on these standard structures going forward while keeping the door open for creative solutions with valued partners like Sorbie when it makes sense.
Conclusion
Tocvan has never been as well-capitalized as it is now, with almost C$12M in working capital. This means the drill programs on both Gran Pilar and El Picacho are fully funded, while the anticipated low single digit construction cost for the heap leach pilot facility will be covered as well.
And just yesterday, Tocvan announced Darin Wagner as a new strategic advisor, strengthening its technical profile.
We are looking forward to seeing a continuous flow of drill results (mainly from Gran Pilar but El Picacho assay results will be a welcome diversification) and more data on the pilot production program.
Disclosure: The author has a long position in Tocvan Ventures. Tocvan Ventures is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read our full disclosure.