Viva Gold: Advancing the Tonopah Gold Project in the US Towards Development

Key Concepts

• Tonopah Gold Project: Viva Gold's primary asset, located in Nevada, USA.
• Measured and Indicated Resource: A classification of mineral resources based on the level of geological knowledge and confidence.
• Feasibility Study: A comprehensive study to determine the economic viability of a mining project.
• Permitting: The process of obtaining regulatory approvals to develop and operate a mine.
• Plan of Operations: A document outlining how a mining project will be conducted, including environmental protection measures.
• Environmental Baseline Study: A study to collect data on the existing environmental conditions of a project area.
• Gravity Flotation and Cyanide Leech: Metallurgical processes used to extract gold from ore.
• Heat Bleach: A low-cost process for recovering gold from low-grade mineralization.
• Institutional Holdings: Shares of a company owned by financial institutions like funds and corporations.

Viva Gold: Tonopah Gold Project Overview and Development Strategy

This summary details the presentation by Jim Hescat, CEO of Viva Gold, at the Precious Metal Summit, focusing on their flagship Tonopah Gold Project in Nevada. The company is listed on the Toronto Venture Exchange.

Project Status and Resource

• Project Location: Approximately 20 miles outside of Tonopah, Nevada.
• Project Stage: Advanced, with the primary resource classified as measured and indicated.
• Resource Size: Over half a million ounces of gold in the measured and indicated category.
• Historical Drilling: The property has been drilled for the last six years by Viva Gold, with prior exploration conducted by major companies including Kakott Minerals, Newmont Gold, and Midway Gold.
• Strategic Shift: Viva Gold has intentionally shifted focus from step-out drilling and deposit expansion to upgrading the existing resource to measured and indicated status. This strategic decision was driven by a unique window of opportunity for permitting in the US under the current administration. The goal is to advance the project directly towards a feasibility study and permitting, with further drilling planned to be funded by future cash flow.

Permitting and Development Timeline

• Next Steps: The immediate plan is to initiate a pre-feasibility study.
• Permitting Process: The pre-feasibility study will generate a Plan of Operations. Viva Gold has been conducting detailed environmental baseline studies for the past three years, which, along with the Plan of Operations, are crucial for initiating the environmental impact studies upon which permits are based. The company asserts that the property has been strategically set up for a streamlined permitting process.
• Funding: The next phase requires raising capital for feasibility work and the permitting process.
• Two-Year Game Plan: The company's objective is to complete the feasibility work and permitting within the next two years.
• Project Finance and Development: During the environmental study phase, discussions with financiers will commence. Upon completion, the project will be at a stage for a construction decision or potential sale of the asset.
• CEO's Experience: Jim Hescat, a mining engineer with experience in building approximately eight mines, emphasizes his expertise in taking exploration projects to production. He believes the Tonopah Gold Project possesses all the necessary attributes for a successful mine venture, which will lead to a re-rating for shareholders.

Metallurgical Work and Process Routes

• Test Work: Extensive metallurgical test work has been conducted over generations, initiated by Canacott in the 1990s and continued by Newmont and Midway Gold, as well as Viva Gold.
• Gold Recoverability: The gold is confirmed to be recoverable. The ore is intensely oxidized.
• Processing Methods:
  • High-grade cores of the deposit can be recovered using gravity flotation and cyanide leech.
  • Low-grade mineralization can be processed through basic conventional heat bleach.
• Cost-Effectiveness: These process routes are considered low-cost and have been well-tested.

Infrastructure and Location Advantages

• Proximity to Tonopah: The project is located just 20 minutes from the town of Tonopah.
• Road Access: Paved highway access directly to the site, enabling services like UPS deliveries to drill rigs.
• Water Supply: A commercial water pipeline crosses the property, providing access to ample commercial utility water.
• Power Supply: A Nevada Energy power line follows the water pipeline, offering sufficient grid access for the project's needs.
• Logistics: The project is located three hours from major supply depots in Las Vegas and Reno, offering a favorable logistical position.

Shareholder Structure

• Major Shareholders:
  • Dundee Corporation: 20%
  • Rab Capital (UK): Approximately 15%
  • Gold Fund (Connecticut): Approximately 8%
  • Private Equity Group (US): Approximately 8%
• Institutional Holdings: Over 50% of the shareholding is institutionally held, indicating confidence from investors who have conducted due diligence.
• Management Ownership: Management holds approximately 4% of the shares.

Conclusion and Outlook

Jim Hescat concludes by stating that the Tonopah Gold Project is located in "elephant territory" and possesses all the necessary components for mine development, a rare characteristic in the current mining landscape. The company is strategically positioned to advance the project rapidly towards feasibility and production.