Viva Gold Ready to Expand Resource
This fall is going to get exciting. As many others are waking up to the obvious conclusion, the wheels are falling off the world’s financial carriage. I see a general stock market high in August/September followed by a giant liquidity event and a big crash in October. Resource shares may be dragged lower but will be the first to recover as investors rush to the only safe haven still left.
There are dozens of inexpensive gold and silver stocks that have been in hibernation for years and are about to wake up. Viva Gold (VAU-V) is one.
Viva picked up the 376,000 ounce Tonopah gold project from the bankruptcy court for $25,000. It carried a 7% NSR which frankly was totally unworkable in any sane financial environment. Management of Viva went to the NSR holders and convinced them to smarten up and got the NSR down to a more realistic 2%.
Viva needed money for drilling so is in the midst of a $1.5 million private placement. Three weeks ago they announced closing on the first $659,500 of the pp that will allow them to get started on the drill program.
The prior operator of the property was Midway Gold that went into bankruptcy. Midway was looking for a high-grade small underground mine. Viva has looked over the $20 million worth of prior drilling and has realized Midway couldn’t see the forest because of all the trees in the way. With the existing pit-constrained resource Viva realizes they could have a small 6-7 year mine life but they see much more potential in a larger open pit heap leach operation.
Viva sees a 1.5 km strike length with the existing resource at one end and an already drilled out 30,000 ounces. Over the next six months Viva intends to drill off this trend to determine if the resource is continuous or to find more potential open pits.
Viva has already expanded the M&I resource by 36% with only 26 short drill holes. Obviously a renewed interest in gold as a response to the increase in price will help the highly leveraged stocks the most. With Viva you are buying high quality ounces for about $15 an ounce USD. That’s not going to last long in a gold bull market.
I own shares bought in the open market and I intend to participate in the private placement. Viva Gold is an advertiser and that means I am biased. Do your own due diligence.
Viva Gold Corp