Last week Tomagold released three drilling results from an ongoing drilling campaign at the Monster Lake project, which it recently optioned out up to 70 percent to Quinto Real.
Tomagold said it drilled three intercepts: 6 metres @ 33.6 g/t Au, 5 metres @ 11.5 g/t Au and 7 metres @ 42 g/t Au, in three separate drillholes, its first of the year.
Since then both Tomagold and Quinto Real shares have taken off, the latter especially, given it was, until recently, a dormant shell company.
Tomagold has more than doubled its shareprice in the past few days to C$0.29 while Quinto Real can now qualify as a much desired “twenty bagger” (for those that could get their hands on shares on what was until recently a thinly traded stock) having risen from C$0.04 to C$0.82 in a matter of six trading days.
The drilling results, apart from the fact the reported grades and widths are exceptionally strong, are also likely catching attention as they come at depths that had not previously been drilled, according to Tomagold.
Until it punched the series of intercepts between vertical depths from around 150 metres to 300 metres, Tomagold said past drilling – rather extensive amounts of it – had not targeted mineralization below 125 metres.
For both Tomagold and Quinto Real the latest drillhits are, obviously, proving a healthy boon to their shareprices. For Quinto Real, which only signed up for a 70 percent option late last year, the timing is particularly fortuitous.
Of the deal, Michael Curtis, Quinto Capital, said in an interview on Wednesday afternoon (EST), “It was good timing and a lot of luck.”
He later exclaimed, “This is crazy how this thing has taken off!”
Curtis, who also heads up a titanium/vanadium explorer called Nevado, said that the Tomagold deal came about after Quinto Real had tried, but failed, to close on another asset as a qualifying transaction for the TSX Venture (Quinto Real received a $300,000 break free).
Thereafter, Quinto Real signed up for the 70 percent option on Monster Lake.
More drilling results from Monster Lake can soon be expected. Curtis said Tomagold, which operates the Monster Lake project, is on its eighth drillhole.
Meantime, Curtis also said Quinto Real expects to close a C$500,000 debenture by the end of the week, adding to about C$500,000 cash on hand.
Quinto Real’s can first earn a 50 percent interest in Monster Lake by issuing Tomagold 1 million Quinto Real shares, paying $350,000 over four years and funding C$6 million in exploration, also over four years.
It can get 20 percent more of the project by doing another C$4 million in exploration work by the seventh year of the option or by finishing and funding a Monster Lake feasibility study.
The Monster Lake project is 44 kilometres southwest of Chibougamau Quebec.