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Viva Gold Announces Filing of PEA for Tonopah Gold Project in Nevada
VANCOUVER, British Columbia--(BUSINESS WIRE)--Viva Gold Corp. (TSX-Venture: VAU; OTCBB: VAUCF) (the “Company” or “Viva”) is pleased to announce it has filed a P
About this update from Viva Gold Corp
[{"type":"text","content":"VANCOUVER, British Columbia--(BUSINESS WIRE)--Viva Gold Corp. (TSX-Venture: VAU; OTCBB: VAUCF) (the “Company” or “Viva”) is pleased to announce it has filed a Preliminary Economic Assessment (“PEA”) Technical Report on SEDAR for the Tonopah gold project (“Tonopah”). The report was completed by Gustavson Associates of Lakewood Colorado. The results of the PEA study, previously announced on May 12, 2020, provide ample justification for ongoing work at Viva’s 100% owned Tonopah Gold project located on the prolific Walker Lane gold trend of western Nevada, near the town of Tonopah. James Hesketh, President & CEO, remarked: “Gustavson recommends that Tonopah be advanced to the feasibility study level to develop mineral reserves on the project, and we concur with this recommendation. Approximately two-thirds of the Tonopah gold mineralization has already been tightly drilled to measured and indicated level where the highest-grade material comes to within 10 meters of surface and provides a strong starter-pit location to drive early payback of invested capital. We believe that we have a strong core project that will provide accretive value to our shareholders as we advance towards a development decision. In addition, we believe that the project retains substantial exploration potential to further increase project size and potential operating life.” The study indicates that the Tonopah project may be potentially developed as an open-pit heap-leach gold mine capable of supporting an initial production rate of up to 50,000 ounces of gold per year at an estimated cash cost of US$745 per ounce and an AISC of US$1,074 per ounce. Based on a $1400 per ounce design price, the project developed an after-tax base case, with a net present value at a 5% discount rate, of US$36.3 million with a 2.9-year payback. The project produces significantly stronger results at current price levels. Please note that a Preliminary Economic Assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic consideration applied to them that would enable them to be categorized as mineral reserves, and that there is no certainty that the preliminary economic assessment will be realized. Gustavson recommends that Viva continues advancing the Tonopah Project by completing a Pre-Feasibi...