A Large High-Grade and Open Gold System
While Pilar Gold’s Sertão deposit already seemed high-grade, Tucano Gold’s “Duckhead” could prove to be even more productive. Sertão won three Ballon d’Ors between 2003 and 2005, when 260,000 ounces were produced at an open-pit grade of 29 g/t, which earned Troy Resources celebrity status on the ASX. We will reopen Sertão as an underground mine in the first half of 2024.
Duckhead also made Beadell Resources famous on the ASX between 2012-14, but it had an incredible last hurrah in its final month in September 2016, when it produced 19,830 ounces at a breathtaking 51 g/t gold. That was an average of 661 ounces per day. Apparently, the helicopter was doing a gold pickup every three days during this time.
Interestingly, directly below the current pit in fresh rock is drill hole FVM560 with 48 m @ 11.62 g/t gold from 66 m, including 3 m @ 88 g/t from 97 m and 4 m @ 49 g/t from 124 m. FVM561 also yielded 10 m at 13.81 g/t from 81 m. Interestingly, these drill holes were part of the last drilling campaign at Duckhead and were reported to the ASX on August 1, 2016.
You can find more information about these intersections on pages 21-23 of our presentation, but the following image says more than 1000 words. Note how few holes were drilled below the pit.
Lead geologists Paulo Aguirre and Roberto Cobra believe there is a large high-grade system around the current Duckhead pit that is open in all directions. Duckhead is not part of our short-term production plans, but it is definitely a drilling priority. Please watch the Duckhead video here, where Roberto Cobra presents the potential of this high-grade system.
Like Sertão, Duckhead never went underground. At the time, both operators only wanted to mine the easily accessible ounces in open-pit operations. Nowadays, gold mine operators wouldn’t give up such high-grade systems prematurely, but management changes, companies come and go, and ten years of bear market in gold sometimes offer such opportunities.
Click here for the Tucano Gold presentation – we recommend you take a look at the cap table on page 5, where our market capitalization after financing will be fully diluted to about $26 million, which is roughly equivalent to our expected cash position after completing this round of financing. The pricing allows for very favorable upside for our seed round investors, and the proceeds from this financing will be used for the planned resumption of operations next month.
This seed round must be completed by Friday, May 20th at the latest. If you’d like to learn more, please join our second webinar this Friday at 2:15 PM GMT/9:15 AM EST, co-hosted live on YouTube by Battery Commodity – click here to join on that day
This business helped Great Panther achieve a market capitalization of $400 million in 2020, and we see no reason why this incredible operation can’t reach 100,000 ounces of annual production again.
Best regards,
Jeremy Gray | CEO of Tucano Gold
Jeremy.Gray@TucanoGold.com
+44 7769 388 376
Julio Carneiro | CFO of Mina Tucano
Julio.Carneiro@TucanoResources.com.br
+55 21 98245 2211
Charles Chebry | President of Tucano Gold
Charles.Chebry@TucanoGold.com
+1 403 680 8511
Paulo Aguirre | Senior Group Geologist
Paulo.Aguirre@PilarGold.com
+55 62 99637 3097
Edward Balme | Head of IR Department
Edward.Balme@TucanoGold.com
+44 7514 584 610
