Vista Gold Corp. Announces Results From a Preliminary Assessment of Its Mt. Todd Gold Project, Northern Territory, Australia
05 Januar 2007 - 1:02AM
PR Newswire (US)
DENVER, Jan. 4 /PRNewswire-FirstCall/ -- Vista Gold Corp.
(AMEX:VGZ) Toronto is pleased to announce results from a
preliminary assessment at its Mt. Todd project in Northern
Territory, Australia, that was completed on December 29, 2006, by
Gustavson Associates LLC ("Gustavson") of Boulder, Colorado, in
accordance with Canadian National Instrument 43-101 standards under
the direction of John W. Rozelle, P.G., an independent qualified
person. This preliminary assessment entitled "Preliminary Economic
Assessment Mt. Todd Gold Project, Northern Territory, Australia"
dated December 29, 2006, has been filed on SEDAR by Vista. The Mt.
Todd project is 50 kilometers north of Katherine, and approximately
250 kilometers southeast of Darwin. Based on a review of project
files, Vista management believes that approximately 24.6 million
tonnes grading 1.05 grams per tonne gold and containing 826,000
ounces of gold were extracted between 1996 and the termination of
mining in 2000. Processing was by a combination of heap-leach
production from oxide ore and cyanidation of sulfide ore. The
remaining mineral resource consists of sulfide mineralization lying
below and along strike of the existing open pit. Gustavson had
estimated mineral resources in a report entitled "Report NI 43-101
Technical Report on the Mount Todd Gold Project, Northern
Territory, Australia" dated June 26, 2006, in compliance with NI
43-101 standards, the results of which were previously reported by
Vista in a press release dated June 26, 2006. Based on the June
2006 report, the gold resources for the Batman deposit, reported at
a cutoff grade of 0.5 grams of gold per tonne and shown in metric
units are: Tonnes Grade Contained Gold (000s) (grams per tonne)
Ounces Measured resources (1) 18,421 0.97 576,130 Indicated
resources (1) 37,957 0.97 1,181,620 Measured and indicated
resources (1) 56,378 0.97 1,757,750 Inferred resources (2) 50,053
0.93 1,503,194 (1) Cautionary Note to U.S. Investors concerning
estimates of Measured and Indicated Resources: This table uses the
terms "measured resources" 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. (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 a feasibility study 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. In
undertaking the preliminary assessment, Gustavson considered the
economic and technical parameters associated with development of
the mineral resources by open-pit mining. The study included a
conceptual process flowsheet developed by Resource Development Inc.
of Wheat Ridge, Colorado, which is based on preliminary testwork
and includes a flotation circuit to recover a bulk sulfide
concentrate, and further flotation to separate a copper sulfide
concentrate that would contain about one-half of the gold and which
would be shipped to a smelter. A pyrite concentrate containing
about one-half of the gold would also be produced and this
concentrate would be cyanide leached to recover the gold. The
cyanide in the sulfide residue would be neutralized, following
which the residue would be filtered to dry it, and then placed on a
lined pad. MWH Australia Pty Ltd ("MWH") designed conceptual
tailing disposal facilities, including utilizing the existing
tailing facility, and estimated capital costs for these facilities.
MWH also completed a closure study and cost estimate for closing
the mine and facilities following resumption of production. In the
preliminary assessment, Gustavson assumed a 30,000 metric
tonne-per-day (10.65 million metric tonne-per-year) ore production
rate, resulting in a ten-year operating life. Overall gold recovery
is estimated at 87% and copper recovery at 70%. Using a gold price
of US$600 per ounce and a copper price of US$2.00 per pound, the
mineable resources are as shown in the following table in metric
units. PRELIMINARY ASSESSMENT STUDY Classification of Mineable
Resources (US$600 per oz Au and US$2.00 per lb Copper Designed Pit)
December 2006 Class Ore Average Contained Total Total Stripping
Tonnes Gold Gold Waste Tonnes Ratio (x 1000) Grade (oz) Tonnes (x
1000) (W:O) (gm/t) (x 1000) Measured resources (1) 20,521.1 0.902
595,036 -NA- -NA- -NA- Indicated resources (1) 41,182.9 0.908
1,202,307 -NA- -NA- -NA- Inferred resources (2) 45,947.5 0.923
1,363,645 -NA- -NA- -NA- 187,118 294,769 1.74 (1) Cautionary Note
to U.S. Investors concerning estimates of Measured and Indicated
Resources: This table uses the terms "measured resources" 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. (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 a feasibility study 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. Startup
capital is estimated at US$264 million. Mining costs are estimated
at US$1.21 per tonne of material mined, processing costs are
estimated at US$6.48 per tonne of ore processed and general and
administrative costs are estimated at US$0.14 per tonne processed.
Gustavson prepared cash flow economic analyses and sensitivity
studies for gold prices of US$500, US$600, and US$700 per ounce and
plus and minus 20 percent for operating and capital costs.
According to the Gustavson study, at long-term average gold prices
over US$532 per ounce, the project appears to be viable. The base
case of US$600 per gold ounce has an approximate pre-tax Discounted
Cash Flow Rate of Return (DCFROR) of 17 percent. Net cash flow is
estimated at US$178 million. The "preliminary assessment" is
preliminary in nature and includes inferred mineral resources (43%
inferred and 57% measured and indicated) that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves, and there is no certainty that the preliminary assessment
will be realized. Mineral resources that are not mineral reserves
do not have demonstrated economic viability. Mike Richings,
President and CEO, commented, "The results of the Gustavson study
confirm our original concept that with appropriate proven
technology, Mt. Todd could be developed under current economic
conditions. During 2007, we have planned a substantial program of
drilling and engineering which we believe will add substantially to
the value of the project. Our drilling program will have two goals:
to convert inferred resources in the Batman pit area to measured
and indicated, and to add new resources to the project. Our review
of the Gustavson study shows the reason that the inferred resources
in the pit are classified as inferred rather than measured and
indicated is because the drill hole sampling density is
insufficient. The 2007 drilling program commencing in February is
designed to increase the sampling density and upgrade inferred
resources to measured and indicated resources. The study also shows
that the potential to extend the resources along strike is good and
again the 2007 program will be an initial test of this potential.
The samples obtained from the drilling will also be used to gather
geotechnical data for pit wall design, to waste rock
characterization and for metallurgical testwork to optimize the
process flow sheet. If the results of the drilling and engineering
program are favorable, we expect this information will lead to an
updated feasibility study and the estimation of mineable reserves."
With regard to some of Vista's other projects, Mr. Richings noted,
"Vista will be undertaking substantial programs at each of its four
most advanced development projects in 2007. These programs will
include infrastructure engineering at Paredones Amarillos,
additional engineering and field work at Yellow Pine, a feasibility
study on the development of Awak Mas and the work at Mt. Todd
described above. These four projects are clearly attractive
developments at current gold prices and we believe that our planned
programs will add substantial value to these projects and
accordingly, to Vista." Further, Mr. Richings said, "The
uncertainty over the timing of the proposed arrangement involving
the creation of Allied Nevada Gold Corp., which, as previously
announced, has taken longer than expected due to the complicated
regulatory process, has made it difficult for the market to fully
the appreciate the full value of Vista. However, we believe our
shareholders will see the full value of this strategy when the
proposed arrangement is complete, through the creation of one of
the best gold exploration and development opportunities in Nevada
in Allied Nevada, with Vista shareholders still retaining a
superior option on the price of gold in Vista with its portfolio of
large advanced gold development projects." 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, the F.W. Lewis, Inc. properties and the 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, the
Awak Mas project in Indonesia, and the Mt. Todd project in
Australia. This press release contains forward-looking statements
within the meaning of the U.S. Securities Act of 1933 and U.S.
Securities Exchange Act of 1934. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that Vista expects or
anticipates will or may occur in the future, including such things
as future business strategy, competitive strengths, goals,
expansion and growth of Vista's or Allied Nevada's businesses,
operations, plans and other such matters are forward-looking
statements. When used in this press release, the words "estimate",
"plan", "anticipate", "expect", "intend", "believe" and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of Vista and Allied Nevada, including anticipated
consequences of the contemplated transaction described herein, to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, among others, risks that Vista's
or Allied Nevada's acquisition, exploration and property
advancement efforts will not be successful; risks relating to
fluctuations in the price of gold; the inherently hazardous nature
of mining-related activities; uncertainties concerning reserve and
resource estimates; potential effects on Vista's or Allied Nevada's
operations of environmental regulations in the countries in which
they operate; risks due to legal proceedings; uncertainty of being
able to raise capital on favorable terms or at all; and risks that
may affect Vista's ability to complete the contemplated transaction
described herein including risks that Vista may be unable to obtain
required third party approvals; as well as those factors discussed
in Vista's latest Annual Report on Form 10-K and Quarterly Report
on Form 10-Q and other documents filed with the U.S. Securities and
Exchange Commission. Although Vista has attempted to identify
important factors that could cause actual results to differ
materially from those described in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate as actual results and
future events could differ materially from those anticipated in
such statements. Vista 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/
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