Viva Gold Increases Measured and Indicated Gold Resource by 36% at its Tonopah Project
NR 19-6
Viva Gold Increases Measured and Indicated Gold Resource
by 36% at its Tonopah Project
VANCOUVER, BC – May 21, 201 9 – Viva Gold Corp . (TSX-Venture: VAU; OTCBB: VAUCF ) (the
“Company” or “ Viva”) is pleased to provide an updated mineral resource estimate for the Tonopah
project, located near Tonopah, Nevada . The update resulted in a 36% percent increase in gold ounces
contained in the measured and indicated resource categories, with a 17% increase in grade for the
measured category.
The new resource estimate includes 24 new reverse circulation and four diamond core drill holes
completed in three programs in 2018 and early 2019. A large tonnage of Inferred mineralization was
converted into measure d and indicated material. The 2019 modelling work , combined with new
information received in regards to historic drilling in the Midway Hills Area, located about 900 meters
northwest and directly on trend f rom the Tonopah deposit, has helped to refine the geologic model at
Tonopah. This work is pointing to extensive open potential along the principal northwest to southeast
structural trend between the two locations . This trend had previously been considered to terminate
before extending to the Midway Hills area.
“We are very pleased by the substantial increase in measured and indicated resource which was
completed at a low cost of approximately US$10.60 per ounce including all drilling, assay, and consulting
costs. These results are a major step in de -risking this project. The work demonstrated continuity in the
mineral zones and our ability to rapidly upgrade the resource with a limited number of new drillholes. We
are also excited by the significant potential demonstrated in the sparsely drilled extension between the
Tonopah project and the Midway Hills area. Our work in this area has pointed to open locations for a new
step-out drilling program. We remain ever more positive in our ability to substantially increase the size of
the Tonopah project”, states James Hesketh, President & CEO.
The updated mineral resource estimate for the Tonopah project follows:
Pit-Constrained Mineral Resource
Classification
Tonnes
(x1000)
Gold Grade
grams/tonnes
Contained
Ounces
Measured 2,500 1.32 112,000
Indicated 6,300 0.62 141,000
Measured and Indicated 8,800 0.89 253,000
Inferred 6,000 0.54 123,000
Note: 0.25 g/t Cutoff Grade
Thomas C. Matthews, MMSA -QP, Principal Resource Geologist for Gustavson Associates of Lakewood,
Colorado, is the Qualified Person responsible for review of technical information in this release and for
the 2018 NI43-101 Technical Report and Mineral Resource Estimate for the Tonopah Gold Project.
Resources are not reserves, and do not include modifying factors which need to be considered to
determine whether they are economically viable.
Tonopah Gold Project Resource Estimation Methodology:
The 2019 resource estimate for the Tonopah Gold Project uses Leapfrog Mining software for domain
analysis and construction, and Datamine Studio RM for block grade estimation. Mineralization is
contained within the upper portion of the Ordovician Palmetto f ormation, and the lower portion of
overlying Tertiary Volcanics. The resource is estimated using ordinary Kriging, with an indicator model
used to segregate geostatistics and estimation parameters for higher grade mineralization controlled by
conjugate she ar zones from the main body of mineralization. Resources are classified as Measured,
Indicated, and Inferred based on distance from data, with Measured mineralization requiring at least two
drill holes within 50% of variogram range, indicated requiring 2 d rillholes within 100% of the variogram
range, and inferred requiring 2 drillholes within 200% of the variogram range.
Pit-Constrained Resource Sensitivity to Cutoff Grade
Classification Cutoff Grade Tonnes
(x 1,000)
Au Grade
Grams/Tonne
Contained
Ounces
Measured 0.15 2,700 1.19 114,000
0.25 2,500 1.32 112,000
1.00 1,400 2.13 92,000
Indicated 0.15 7,000 0.55 145,000
0.25 6,300 0.62 141,000
1.00 1,000 1.62 51,000
Inferred 0.15 6,500 0.47 127,000
0.25 6,000 0.54 123,000
1.00 700 1.28 30,000
The Base Case resource is estimated at a cutoff grade of 0.25 grams per tonne. This table shows limited
sensitivity to changes in cutoff grade in the low grade ranges. The 1.0 gpt cutoff grade range outlines the
high-grade core of the mineralization. Two distinct populations of high and low grade gold mineralization
exist at the Tonopah Gold Project, which are seen in this analysis.
Pit-constrained resources are reported at a cutoff grade of 0.25 g/t gold, which constitutes a reasonable
prospect for economic extraction based on a comparison with similar gold deposits in Nevada, and
constrained within a US $1,250 pit shell using a 42 degree average pit slope. This resource estimate is
based on initial metallurgical recovery and process cost assumptions based on initial bottle roll testwork
completed in 2018 and work completed by prior operators on both leach and gravity recovery for the
project.
Extension of Financing
Viva has extended its private placement financing, first announced on April 3, 2019, for an additional 30
days. Viva’s intention is to complete a non-brokered private placement (the "Offering") of up to 5,000,000
units (the "Units") at a price of CDN $0.37 per Unit. Each Unit will consist of one common share in the
capital of the Company (a “Share”) and one whole transferable common share purchase warrant (a
“Warrant”). Each whole Warrant will be exercisable to acquire one Share at an exercise price of CDN $0.47
per Share for a period of 24 months from the date of issuance. Proceeds will be utilized for technical study
of the Tonopah project including drilling and for general corporate working capital purposes.
About Viva Gold Corp:
Viva Gold is a gold exploration and development company with a focus on Nevada. Viva holds 100% of
the Tonopah Gold Project, a large land position with demonstrated high -grade measured, indicated and
inferred gold resources, located on the prolific Walker Lane Trend in Nevada, 30 kilometers south-east of
the Round Mountain mine of Kinross Gold and 20 kilometers from the Town of Tonopah. Viva’s
management team has extensive experience in mining exploration, development and production and are
supported by a Board of Directors and advisors who are proven mine finders, deal makers and financiers.
Viva trades on the TSX -V as “VAU”, on the OTCBB in the US as “VAUCF” and on the Frankfurt exchange
under “7PB”. For additional information on Viva Gold and the Tonopah Gold Project, please visit our
website: www.vivagoldcorp.com.
For further information please contact:
James Hesketh, President & CEO
(720) 291-1775
Valerie Kimball, Director Investor Relations
(720) 933-1150
Forward-Looking Information:
This news release contains certain information that may constitute forward -looking information or forward -looking
statements under applicable Canadian securities legislation (collectively, “forward-looking information”), including
but not limited to drilling operations and gold resources at the Tonopah Gold Project. This forward -looking
information entails various risks and uncertainties that are based on current expectations, and actual results may
differ materially from those contained in such information. These uncertainties and risks i nclude, but are not limited
to, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the potential for
achieving targeted drill results, the degree to which mineral resource estimates are reflective of actual min eral
resources; the degree to which factors which would make a mineral deposit commercially viable are present; the risks
and hazards associated with drilling and mining operations; and the ability of Viva to fund its capital requirements.
Risks and uncertainties about the Company’s business are more fully discussed in the Company’s disclosure materials
filed with the securities regulatory authorities in Canada available at www.sedar.com. Readers are urged to read
these materials. Viva assumes no obligation to update any forward-looking information or to update the reasons why
actual results could differ from such information unless required by law.
Cautionary Note to U.S. Investors --- The United States Securities and Exchange Commission permits U.S. mining
companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and
legally extract or produce. We use certain terms in this report, such as "measured," "indicated," "inferred," and
"resources," that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with
the SEC.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.