The Tonopah property consists of 444 unpatented mineral claims, totaling 8,762 acres, that are located in the Ralston Valley, on the northeast side of the San Antonio Mountains in the Walker Lane structural trend of west-central Nevada, approximately 30 kilometers northeast of the town of Tonopah and 70 kilometers south of Round Mountain.
138 of the unpatented claims are subject to a 2% Net Smelter Return Royalty (NSR). 1% of the 2% NSR may be acquired at any time for $1.0 million. This option does not expire. The remaining 306 claim are not subject to any royalty.
The project is 100% owned by Viva's Nevada subsidiary 0862130 Corp. The property is not subject to payments or obligations other than annual claim fees payable to the Bureau of Land Management
The Tonopah property contains a low-sulfidation epithermal gold system with near vertical quartz-adularia-gold veins hosted by the Palmetto Formation and the overlying Tertiary rhyolitic volcanics. These a large dilatational break in the regional Rye Patch- Walker Lane fault systems. In addition, a discontinuity has been identified in drilling at the top of the Palmetto formation, where tertiary volcaniclastics and ashfall tuffs unconformably overlay the argillite. Significant alteration and mineralization is localized within a low-angle zone which includes and often parallels the erosion surface of the Palmetto, as well as several facies in the tertiary volcanics, particularly where veins and mineralized structures intersect this contact zone. With the exception of a single outcrop, the gold-bearing altered and mineralized zones of the Tonopah deposit are masked by alluvium, playas and sand dunes.
Analysis of gold mineralization demonstrates a bi-modal population of high grade mineralization associated with high angle structures and a lower grade population of mineralization associated with the argillite/volcanic contact zone.
Alteration and mineralization at the Tonopah property are typical of low-sulfidation, volcanic-hosted epithermal gold deposits found elsewhere in Nevada and around the world. The deposit type is characterized by overall low original sulfide content, and quartz-adularia and clay-sericite alteration assemblages, among others. Vein textures are indicative of high level, near surface emplacement and include void fills, crustiform coatings, colloform banding, and comb structures. Similar deposits in Nevada have proven to be economic, including the Midas, Bullfrog and Round Mountain deposits. The proximity and similarities of the Tonopah property to other gold deposits does not, on its own, indicate that the Tonopah property should be similarly mineralized
Basis of In-Pit Estimate:
•$1,250 Gold price
•0.25 gpt cutoff grade
•Pit constrained - 42 degree average pit slope angle
•Initial recovery and process cost estimates
•~82% of total mineralized material reported to constrained pit shell
• Prepared by Gustavson Associates, Lakewood Colorado
•Thomas C. matthews, MMSA-QP, Principal Resource Geologist for Gustavson Associates, is the Qualified Person responsible for this Mineral Resource Estimate
Plan view of the $1,250 pit shell. A pit slope of 42 degrees was utilized.
Column leach testwork completed 4 composite samples ranging in grade from 0.38g/t to 1.98g/t head grade and divided by rock type
- Coarse Crush –RC chips used as samples, crushed to 80% minus 10 mesh and agglomerated with cement
- Tests not driven to completion in 60 days – additional time needed to increase recovery
- Impact of slow-leaching free gold content noticed on recovery
- +83% recovery on argillite (Opa) sample representing ~ 50% of resource base.
- ~65% recovery expected with additional time in Tertiary Volcanics
- Low recovery seen in silicified Tertiary Volcanic (TRT) representing small volume of resource
Over 5 kilometers of exploration potential around perimeter of gravity high/Palmetto Formation contact zone
The Tonopah Project is currently an exploration/evaluation stage project. The site has excellent logistics and access for exploration, being a short drive from the town of Tonopah, Nevada, with good road access, communications, and access to contractors and labor. Las Vegas, a city of 2 million people with significant construction and manufacturing infrastructure, is located 340 kilometers southeast of the project via US Highway 95. There are major Komatsu and Caterpillar dealers and supply depots located in Las Vegas, as well as Cat and Komatsu parts depots and mining-specific machine shops in Round Mountain, approximately 50 kilometers north of the project. Power and water is available, although water rights will need to be acquired.
Viva has the permits and authorizations necessary to conduct mineral exploration activities on both public and private land. Authorizations include:
Studies by a prior operator on the project were undertaken to support a potential small-scale underground mining operations. The studies identified and evaluated baseline hydrogeologic conditions, groundwater quality, storm water controls, mine dewatering requirements, ore and waste rock geochemistry, and surplus water management options including re-infiltration and underground injection. Geochemical testing of waste rock that would be encountered in potential underground decline development reported a low or no potential for acid rock drainage.
Drill results demonstrate that the Tonopah gold system is large in size, but structurally complex. Over 400,000 ounces of in-place gold mineralization has been discovered and outlined and Viva believes that the Tonopah deposit has the potential to be significantly larger in size. The work plan has a Part A and B.
Part A includes initiating a Preliminary Economic Analysis (PEA) on the existing resource base, to determine potential economic viability. If feasible, work would commence on long lead time studies including baseline water sampling, hydrology, rock characterization tests, and additional metallurgical testwork as a basis for commencing detailed pre-feasibility study and development permitting. This work would provide a baseline valuation for the project and open up strategic options for the property.
Part B focuses exploration potential. This work would include detailed structural analysis of the project area to better define the locations of structural junctions and the potential for intercepting addition areas of high-grade mineralization. This work would include follow-up field programs including close spaced geophysical studies and drilling.
The proposed work plan, including completion of the resource estimate, drilling, metallurgical test work and initial environmental field work, is expected to cost between $1.5 and $5.0 million depending on the level of success senn in work function on both Part A and B.