Viva Gold advances Nevada Tonopah project toward pre-feasibility study

Viva Gold Corp CEO Jim Hesketh provided an update on the company's Tonopah gold project in Nevada, highlighting progress toward a pre-feasibility study (PFS). The company recently completed a 19-hole infill drilling program focused on expanding shallow high-grade zones that are expected to support early-stage mining. The work aims to convert inferred resources into measured and indicated categories ahead of the PFS. This drilling program is part of a broader effort to de-risk the project and enhance its economic viability, with results expected to feed directly into the PFS model.

For gold and precious metals traders, the advancement of a project toward PFS is a key milestone that can signal potential future supply. While this is an early-stage development, successful resource conversion and a positive PFS could attract further investment and M&A interest in the Nevada gold belt. Traders monitoring junior gold miners should note that such milestones often precede share price catalysts. In the broader gold market, central banks have been net buyers since 2022, adding over 1,000 tonnes annually, which supports prices. Real US 10-year yields remain a key driver, with gold inversely correlated; a falling yield environment typically boosts gold. The COMEX-LBMA spread has narrowed recently, indicating reduced arbitrage pressure, while GLD and IAU ETF flows have been mixed, with some outflows as investors rotate into equities. Jewelry demand in China and India remains robust, but investment demand via bars and coins has softened. The DXY inverse correlation persists, with a weaker dollar providing tailwinds. For real-time gold prices, NowPrice offers up-to-date quotes on spot gold and gold futures.

Looking ahead, the market will watch for the completion of the PFS and any updates on resource estimates. The Tonopah project's location in Nevada, a top-tier mining jurisdiction, adds to its appeal. Investors should also monitor gold price trends and cost inflation in the mining sector, as these factors directly impact project economics. A rising gold price above $2,000 per ounce could improve margins for developers like Viva Gold, while input cost pressures from labor and energy may offset gains. The PFS is expected to outline initial capex and operating costs, providing a clearer picture of the project's viability. Any M&A activity in the Nevada region could also serve as a catalyst for the stock.