Sonora 101 – Two Gold Belts, Two Different Upsides

Tocvan has strategically positioned itself across two distinct but highly productive geological belts in Sonora, Mexico, providing investors with diversified exposure to different styles of gold mineralization and development timelines. The company's dual-belt approach targets both near-term production potential and longer-term discovery upside in proven gold districts.

The Sierra Madre Occidental belt, which produces over one-third of Mexico's annual gold output, hosts Tocvan's Gran Pilar project - a low-sulfidation epithermal gold-silver system with oxidized, near-surface mineralization. The project features a fully permitted 50,000-tonne pilot mine facility and fits the classic heap-leach profile that makes epithermal systems attractive for early-stage production. These systems typically offer multiple parallel structures and broad alteration halos suitable for open-pit mining operations.

In contrast, the Caborca Orogenic Gold Belt represents Tocvan's higher-risk, higher-reward exploration play through the El Picacho project. This district-scale land package sits just 18 kilometers from the producing San Francisco Mine in a corridor that has already delivered several multi-million-ounce deposits, including La Herradura (>10 Moz Au) and San Francisco (>3 Moz Au). Orogenic gold systems in this belt are characterized by deep-rooted, structurally controlled mineralization along long-lived fault systems.

The strategic value of Tocvan's positioning lies in the complementary nature of these two project types. Gran Pilar offers potential near-term cash flow through epithermal-style production, providing a foundation for funding continued exploration. Meanwhile, El Picacho delivers leveraged exploration upside in one of Mexico's most important orogenic gold belts, where successful discoveries have historically grown into large, long-life mining operations through systematic step-out drilling along strike and at depth.