ANNOUNCES DRILL PROGRAM AT TONOPAH GOLD PROJECT
Viva Gold Corp. (VAU.V) has submitted a work plan for approval by the Bureau of Land Management to drill 28 core or reverse circulation drill holes at its Tonopah project. The project is located on the prolific Walker Lane trend of western Nevada near the town of Tonopah. The work plan submittal is required under Viva's existing exploration plan of operations and under its approved programmatic agreement for the project.
"We believe that the Tonopah project can be substantially expanded with additional drilling. Our goal for this program is to further expand inferred resources at the project and to drill in locations where known inferred resource can be upgraded to the indicated category. Our target for the Tonopah gold project is to develop one million ounces of contained gold resource in all categories," states James Hesketh, president and chief executive officer.
The purpose of this program is to follow up on drill targets identified while completing the recent technical report and mineral resource estimate for the Tonopah project, dated March 28, 2018. Identified targets fall into three categories:
- Drill holes required to confirm the location of major structural features and geologic contacts, particularly where strong mineralizing had previously been identified, but where gaps in drill-hole information exist.
- Infill drilling between zones of measured and indicated resources contained within the $1,250 resource pit shell, but where only limited or no drilling has been conducted in the past.
- Stepout drilling in areas of limited drill information both within the existing mineral resource pit shell and outside of the pit shell on known structures as well as along the volcanic/argillite contact zone and where isolated previous drill hole intercepts need follow-up.
The prior operator at the Tonopah gold project focused primarily on drilling a number of structurally controlled high-grade zones, including Dauntless and Discovery zones. Viva is expanding that focus. During acquisition, Viva was able to renegotiate the royalties on the Tonopah project reducing the royalty from a 7-per-cent net smelter return (NSR) at $700 gold price to a flat 2-per-cent NSR structure with a 1-per-cent buyout option. This has allowed Viva to look at the project using a new set of economic parameters resulting in a lower potential cut-off grade than previously used. Viva's work has demonstrated that significantly improved continuity of gold mineralization can be developed at lower cut-off grades. This work has resulted in the identification of a number of locations where gaps in drilling exist and where extensions to mineralization may be proven with additional drilling.
The Tonopah property contains a low-sulphidation epithermal gold system which includes near vertical quartz-adularia-gold veins hosted by the Palmetto formation argillite and the overlying Tertiary rhyolitic volcanics and a low-angle zone of mineralization which includes and often parallels an erosion surface discontinuity at the top of the Palmetto. These two types of mineralization have been identified in a series of north-striking extensional structural zones within an overall mineralized trend along the north-northwest Walker Lane trend, covering an area over 2,000 metres long and 300 metres wide.
All technical information which is included in this statement has been reviewed and approved by Thomas C. Matthews of Gustavson Associates LLC. Mr. Matthews is independent of the company and a qualified person, pursuant to the meaning of such terms in National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Viva Gold is a gold exploration and development company with a focus on Nevada.