The Tonopah property encompasses 4,054 acres in the Ralston Valley, on the northeast side of the San Antonio Mountains in central Nevada, located approximately 20 miles northeast of the town of Tonopah in Nye County.
The Project consists of 444 unpatented lode claims covering an area of 4,054 acres. All unpatented claims are 100% controlled by Viva Gold Corporation (Viva); copies of the individual claim notices and location maps are on file with the central BLM office in Reno, Nevada, and with the Nye County Recorder’s office in Tonopah, Nevada. The list of claims is included as Appendix C – List of Claims.
A 2% Net Smelter Return Royalty exists on 185 of the unpatented lode mining claims. The surface rights of the unpatented claims located in all claim Sections other than Section 32 are managed by the Bureau of Land Management. Those surface rights located in Section 32 are on lands under private ownership through the Stock Raising Homestead Act (SRHA) of 1916.
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. Similar deposits in Nevada have proven to be economic, including the Midas and Bullfrog 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.
Surface geology at the Tonopah Property is dominated by valley fill deposits including alluvium, colluvium, sand dunes and playa deposits. With the exception of a single outcrop, the gold-bearing altered and mineralized zones of the Tonopah deposit are masked by these Quaternary deposits. Drilling indicates that the surface sediments are underlain by several rhyolitic to mafic Tertiary volcanics units, which non-conformably overlie Ordovician argillites of the Palmetto formation.
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. A discontinuity has been identified in drilling at the top of the Palmetto formation, where tertiary volcaniclastics and ashfall tuffs disconformably 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. It is interpreted that ascending fluids entering the contact zone deposit precious metals in a favorable chemical and textural horizon in the base of the tertiary volcanics.
Higher-grade gold mineralization and associated alteration have been identified in a series of north-striking extensional structural zones within the overall mineralized trend along the north-northwest Walker Lane trend, covering an area 10,300 feet long and 1,500 feet wide, including the Dauntless and Discovery Zones. Gold mineralization in the Dauntless and Discovery occurs in zones of massive quartz-adularia alteration in volcanic and volcaniclastic rocks of the Tombstone Formation and in veins, breccias, and silicified faults in both the Tombstone Formation and the underlying Palmetto Formation. Quartz-adularia alteration in the Discovery Zone tends to extend laterally in the Tombstone Formation immediately above and parallel to the nonconformable contact with the Palmetto Formation associated low grade disseminated gold mineralization. In the Dauntless Zone, the quartz-adularia forms a funnel-shaped zone that expands upward into the Tombstone Formation above the moderately dipping nonconformity. Visible gold is commonly observed in and along the edges of veins, is frequently associated with hematite, and occurs locally in coarse form. Dendritic gold has been observed in core.