Vista Gold Corp. Exercises Option to Purchase Awak Mas Gold Deposit, Indonesia
19 April 2005 - 1:29AM
PR Newswire (US)
Vista Gold Corp. Exercises Option to Purchase Awak Mas Gold
Deposit, Indonesia DENVER, April 18 /PRNewswire-FirstCall/ -- Vista
Gold Corp. (AMEX:VGZ) Toronto is pleased to announce that its Board
of Directors has approved the exercise of the purchase option for
the Awak Mas gold deposit located in Sulawesi, Indonesia. As
previously reported, in November 2004 Vista entered into an option
agreement to acquire the Awak Mas deposit for a purchase price of
U.S. $1,500,000. Under the terms of the agreement, Vista had a
six-month option period in which to conduct due diligence while
paying the owners U.S. $15,000 per month. The monthly option
payments, as well as costs up to U.S. $150,000 expended to correct
any deficiencies in asset standing, will be credited towards the
purchase price. The closing is anticipated to occur on or before
May 6, 2005. Also as previously reported by the Corporation, an
October 2004 resource analysis prepared by RSG Global Pty Ltd of
West Perth, Australia, an independent consulting firm, in
accordance with Canadian National Instrument 43-101 guidelines
under the supervision of Brett Gossage, a Qualified Person, showed
the known deposit, at a reported cutoff grade of 0.5 grams gold per
ton, to contain measured and indicated resources of 52,580,000
short tons at a grade of 0.032 ounces per ton containing 1,656,000
gold ounces(1) and inferred resources of 8,250,000 short tons at a
grade of 0.032 ounces per ton containing 259,000 gold ounces(2).
The Corporation believes the potential to expand the resources is
good, based on preliminary exploration results of previous
operators. Vista President and CEO Mike Richings stated "Acquiring
measured and indicated resources of 1.7 million gold ounces plus an
inferred resource of 0.3 million gold ounces at a cost of U.S. $1.5
million, in a project whose previous operators spent over AUD $46
million and completed a final feasibility study, is very attractive
to Vista. We will be attempting to expand the gold resources by
strategic exploration over the next several years and to enhance
the economics of the project through engineering studies." Vista
Gold Corp., based in Littleton, Colorado, evaluates and acquires
gold projects with defined gold resources. Additional exploration
and technical studies are undertaken to maximize the value of the
projects for eventual development. The Corporation's holdings
include the Maverick Springs, Mountain View, Hasbrouck, Three
Hills, Wildcat projects and Hycroft mine, all in Nevada, the Long
Valley project in California, the Yellow Pine project in Idaho, the
Paredones Amarillos and Guadalupe de los Reyes projects in Mexico,
the Amayapampa project in Bolivia, and the Awak Mas deposit in
Indonesia. (1) Cautionary Note to U.S. Investors concerning
estimates of Measured and Indicated Resources: This press release
uses the term "measured and indicated resources." We advise U.S.
investors that while this term is recognized and required by
Canadian regulations, the U.S. Securities and Exchange Commission
does not recognize it. U.S. investors are cautioned not to assume
that any part or all of mineral deposits in this category will ever
be converted into reserves. (2) Cautionary Note to U.S. Investors
concerning estimates of Inferred Resources: This press release uses
the term "inferred resources." We advise U.S. investors that while
this term is recognized and required by Canadian regulations, the
U.S. Securities and Exchange Commission does not recognize it.
"Inferred resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of a feasibility study or other
economic study. U.S. investors are cautioned not to assume that any
part or all of an inferred resource exists or is economically or
legally minable. The statements that are not historical facts are
forward-looking statements involving known and unknown risks and
uncertainties that could cause actual results to vary materially
from targeted results. Such risks and uncertainties include those
described from time to time in the Corporation's periodic reports,
including the annual report on Form 10-K filed with the U.S.
Securities and Exchange Commission. The Corporation assumes no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
For further information, please contact Greg Marlier at (720)
981-1185, or visit the Vista Gold Corp. website at
http://www.vistagold.com/. DATASOURCE: Vista Gold Corp. CONTACT:
Greg Marlier of Vista Gold Corp., +1-720-981-1185 Web site:
http://www.vistagold.com/
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