- Viva Gold (TSXV:VAU), a Nevada-based gold stock, is strengthening its case for undervaluation with assay results for three holes from its 100-per-cent-owned Tonopah project
- Intercepts highlighted by 50.5 metres averaging 0.68 grams per tonne of gold and 3 grams per tonne of silver indicate strong grade continuity to the northeast of Tonopah’s 2022 preliminary economic assessment
- Viva Gold is a junior gold stock developing its Tonopah project in Western Nevada on the prolific Walker Lane mineral trend
- Viva Gold stock has given back 9.38 per cent year-over-year, and has lost 60.81 per cent since 2019
Viva Gold (TSXV:VAU), a Nevada-based gold stock, is strengthening its case for undervaluation with assay results for three holes from its 100-per-cent-owned Tonopah project.
The three holes were drilled to offset widely spaced gold intercepts from Viva’s 2022 and 2023 drill programs on the north side of the 2022 preliminary economic assessment (PEA) main pit area, which was until now considered waste in the resource model.
Drill hole TG2401 intercepted 50.5 metres starting at 40 m averaging 0.68 grams per tonne of gold (g/t Au) and 3 g/t silver (Ag), including two higher-grade zones of 10.7 m at 1.54 g/t Au starting at 40 m and 4.6 m at 1.47 g/t Au starting at 69 m. TG2401 was drilled due west from the collar of TG2212 (21.3 m at 0.5 g/t Au, including 7.6 m at 1.3 g/t Au) toward hole TG2210 (38 m averaging 0.8 g/t Au starting at 18 m depth).
Drill hole TG2402 intercepted 4.6 m at 0.5 g/t Au and 1.5 g/t Ag starting at 52 m.
Drill hole TG2403 intercepted 18.3 m at 0.6 g/t Au and 5.8 g/t Ag commencing at 64 m, including 3 m at 1.37 g/t Au and 4.1 g/t Ag.
TG2402 and TG2403 were drilled in a western direction 40 m to the north and south respectively of TG2310, which houses four zones with a cumulative 48 m at 1.9 g/t Au, including 23 m at 3.5 g/t Au starting at 72 m.
Investors can expect further results from the company’s recently completed 10-hole, 1,515-m reverse circulation drilling program in the near future.
Management insights
“We are very pleased with these initial results,” James Hesketh, president and chief executive officer (CEO) of Viva Gold, said in a statement. “These first three holes, when combined with prior wide-spaced drilling, potentially create strong grade continuity on the northeastern side of the resource pit shell defined in our 2022 PEA. Additional infill and step-out drilling in this area of the project is clearly justified.”
Hesketh has built a 40-year mining track record highlighted by the development and construction of eight mines around the world. He spoke with Stockhouse back in January about Viva’s rigorous approach to resource development and shareholder value creation.
Looking ahead
Viva has delivered consistent resource growth at Tonopah from a little more than 35,000 ounces of gold in 2017 to 600,000 ounces in 2022, with ongoing drilling eyeing further growth towards a pre-feasibility study later this year. The Nevada gold stock expects to make a construction decision for a potential mine sometime in early 2025.
Tonopah’s 2022 PEA delineates its high return potential, including an after-tax net present value (5 per cent) of US$36 million and undiscounted cash flow of US$60 million at a gold price of US$1,400 per ounce, a 41 per cent discount to Tuesday’s market price.
About Viva Gold
Viva is a junior gold stock developing its Tonopah project in Western Nevada on the prolific Walker Lane mineral trend.
Viva Gold Corp. (TSXV:VAU) last traded at C$0.14 per share. The stock has given back 9.38 per cent year-over-year, and has lost 60.81 per cent since 2019.
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