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TomaGold set for busy year as it looks to prove its model at past producing project near Quebec's Chibougamau mining camp

Oblaski spans 345 hectares and the firm is now carrying out a 2,500-metres, seven-hole, drill program there

TomaGold Corp -
In January this year, the group said the first three holes drilled had hit the target zones, namely the A, C, D and A-Po zones, at Obalski

This year is poised to be a busy one for TomaGold Corp (CVE:LOT), which is exploring around the famous Chibougamau mining camp in Quebec.

Well-funded with over C$10 million in cash and short term investments, a renewed board and technical team, the company is currently drilling at its flagship Obalski project - a past producer of gold, silver and copper.

The asset spans 345 hectares and the firm is now carrying out a 2,500-metre (m), seven-hole, drill program there, mainly to verify historical results for future work. Preliminary findings have been encouraging.

Detailed analysis

The drilling comes after the company carried out a detailed analysis of historical drill data, which lead to an initial 3D model, showing the project's considerable potential. In January this year, the group said the first three holes had hit the target zones, namely the A, C, D and A-Po zones.

"The A-Po Zone is particularly well represented in all three holes with passages of massive sulphides composed of pyrrhotite, pyrite and chalcopyrite, which are generally contained in quartz-carbonate-chlorite veins," TomaGold said, noting that one hole had hit this zone (A-Po) at a vertical depth of 400m.

TomaGold’s chief executive David Grondin has previously said that if the company can prove its modelling of these four zones, it will “open up” the whole Obalski project once more.

The deposit has already produced 100,273 tonnes at grades of 1.14% copper, 2.08 gras per ton (g/t )gold and 6.04 g/t silver from the A zone between 1964 to 1972, and around 9,000 tonnes at a reported grade of 8.5 g/t gold from the D zone in 1984.

"We like projects where there is a lot of historical work so you can re-work, you can reinterpret, you can tap into it. Obalski was that type of project so we really like it," Grondin told investors in an interview in January this year.

Good address

TomaGold certainly has a good address for its assets.

Chibougamau has a big mining history, boasting gold and copper discoveries as far back as the early 1900s.  

From 1953 to 2008, the area generated 1.6 billion pounds of copper and 3.2 million ounces of gold along with significant finds of zinc and silver. More recently, exploration activities have revealed the potential for the discovery of ‘lode gold’ deposits as well as the copper-gold vein deposits of the past.

In the area, TomaGold also owns 100% of the Monster Lake East property and it is operator of the 70%-owned Hazeur property, which sits at the southern border of the Monster Lake property.

To the west of that, the firm owns the Monster Lake West property - 21 claims covering 1,172 hectares. It also owns the Monster Lac Doda - 80 mineral claims covering 4,478 hectares, which lies around 20 kilometres (km) southwest of the Monster Lake property.

In July last year, the company inked an option agreement for the sale of up to 80% of the Lac Doda project to Goliath Resources.

As part of that deal, to acquire an additional 15% undivided interest, Goliath would have to complete an NI 43 101 resource estimate showing a minimum indicated resource of 250,000 ounces of gold by August 31, 2025, and make a further payment of C$500,000 to TomaGold.

The company also has a presence in Red Lake, Ontario, one of the largest and highest-grade gold camps in North America with historical production totaling more than 30 million ounces. 

Here it is in a three-way joint venture on the Baird project. It holds a 24.5% stake, while New Gold Inc (NYSEAMERICAN:NGD) has a 24.5% interest, and operator Evolution Mining (ASX:EVN) owns the remaining 51%.

So with assets in a good location and some tie-ups with some big-name mining groups, the ducks could be lining up quite nicely for this company.

It could certainly be a stock to watch during this time of rising precious metals prices.

Contact the author at giles@proactiveinvestors.com

Quick facts: TomaGold Corp

Price: 0.08 CAD

Market: TSX-V
Market Cap: $12.18 m


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