Vista Gold Corp. Announces Updated Feasibility Study for the Paredones Amarillos Gold Project, Mexico
26 September 2005 - 2:30PM
PR Newswire (US)
DENVER, Sept. 26 /PRNewswire-FirstCall/ -- Vista Gold Corp.
(AMEX:VGZ) Toronto is pleased to announce the results of an updated
preliminary feasibility study for the Paredones Amarillos gold
project in Baja California Sur, Mexico. A feasibility study was
previously completed by Echo Bay Mines in 1997. The updated study
was issued on September 23, 2005, by Mine Development Associates
(MDA) of Reno, Nevada, an independent consulting firm, in
accordance with Canadian National Instrument 43-101 guidelines,
under the supervision of Mr. Neil Prenn, P. Eng., a Qualified
Person. MDA was assisted in the effort by Resource Development
Incorporated (RDi) of Wheat Ridge, Colorado, in metallurgical
testing and process redesign, and by WLR Consulting (WLR) of
Lakewood, Colorado, in mine design. Proven and probable mineral
reserves were determined within a proposed open pit mine, which was
designed employing a Lerchs-Grossmann optimization technique based
on U.S. $400 per ounce gold price. The results are summarized in
the following table. Paredones Amarillos Mineral Reserve Estimate
(0.38 g/t gold internal cutoff grade) Ore Tonnes Gold Grade
Contained Waste Tonnes Strip Ratio (000's) (Fire Assay Gold Ounces
(000's) (Waste : Ore) g/t) Proven 11,699 1.11 419,000 Probable
37,247 0.97 1,158,000 Totals 48,946 1.00 1,577,000 170,292 3.48 The
capital and operating costs were estimated by MDA with the
assistance of RDi and WLR. Mining plans were prepared and a
schedule generated detailing annual production of ore and waste, by
WLR. Appropriate mining equipment was selected and requirements
estimated for the proposed life of the operation. RDi completed
metallurgical test work and process plant design for the proposed
11,000 tonne per day flotation/leach plant. The proposed flow sheet
is estimated to achieve a 90% process recovery on gold and to
minimize process water and tailings disposal expense. The plant is
designed to produce an average of 113,000 gold ounces per year over
12.5 years. Using a gold price of U.S. $400 per ounce, the
estimated pretax rate of return was 4% and the undiscounted cash
flow was estimated to be U.S. $37 million. Sensitivity analyses
show the estimated pretax rate of return rises to 12% and the
estimated undiscounted cash flow rises to U.S. $122 million at a
gold price of U.S. $460. An alternate mining plan was designed to
enhance the return on investment. The smaller mine operation
improved the estimated pretax rate of return at a gold price of
U.S. $400 per ounce to 7% and the estimated undiscounted cash flow
to U.S. $41 million. At a gold price of U.S. $460 per ounce, the
estimated pretax rate of return was 17% and the estimated
undiscounted cash flow was U.S. $107 million. The resource model
used to estimate the mineral reserves was reported by the
Corporation in a press release dated August 29, 2002, based on an
independent technical report prepared by Snowden Mining Industry
Consultants of Vancouver, British Columbia, in compliance with
Canadian National Instrument 43-101. According to the report, dated
August 20, 2002, the gold resources above a 0.5 grams gold per
tonne cut-off at the Paredones Amarillos project are: Paredones
Amarillos Resource Estimate Tonnes Gold Grade Ounces of Gold (0.5
g/t Au cutoff) (000's) (g/t) (000's) Measured resources (1) 11,498
1.17 431 Indicated resources (1) 44,170 1.02 1,451 Total measured
and indicated resources (1) 55,668 1.05 1,882 Inferred resources
(2) 5,495 0.79 140 (1) Cautionary Note to U.S. Investors concerning
estimates of Measured and Indicated Resources: This table uses the
terms "measured and indicated resources". We advise U.S. investors
that while these terms are recognized and required by Canadian
regulations, the U.S. Securities and Exchange Commission does not
recognize them. U.S. investors are cautioned not to assume that any
part or all of mineral deposits in these categories will ever be
converted into reserves. Mineral resources that are not "mineral
reserves" do not have demonstrated economic viability. (2)
Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources: This table 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 feasibility or
prefeasibility studies, except in rare cases. U.S. investors are
cautioned not to assume that any part or all of an inferred
resource exists or is economically or legally mineable. Mike
Richings, President and CEO, commented, "Our strategy to acquire
out-of-the-money gold resources and hold them for higher gold
prices while improving the economics through re-engineering is
beginning to show positive results as at Paredones Amarillos. This
updated prefeasibility study showed an increase in proven and
probable reserves of 290,000 gold ounces and indicates an
attractive economic return at current gold prices." 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. 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.
DATASOURCE: Vista Gold Corp. CONTACT: Greg Marlier of Vista Gold
Corp., +1-720-981-1185 Web site: http://www.vistagold.com/
Copyright
Vista Gold (AMEX:VGZ)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Vista Gold (AMEX:VGZ)
Historical Stock Chart
Von Jul 2023 bis Jul 2024