Vista Announces Initial Drill Results for Mt. Todd, Australia, Project and Decision to Develop Advanced Projects
31 Mai 2007 - 5:12AM
PR Newswire (US)
DENVER, May 30 /PRNewswire-FirstCall/ -- Vista Gold Corp.
(AMEX:VGZ) Toronto ("Vista") is pleased to announce initial results
from a drill program underway at its Mt. Todd project in the
Northern Territory, Australia. The Corporation is conducting a
diamond core drilling program totalling approximately 10,000 meters
in 26 holes. The objectives of the program are to obtain
information that supports the conversion of inferred gold resources
to measured and indicated resources, to explore for additional
resources on strike and down dip, to aid in the determination of
the copper content of the deposit and to obtain samples for
metallurgical testing. The drilling program began February 1, 2007,
and is continuing under the overall supervision of Robert Perry,
CPG, Vista's Vice President of Exploration. Mr. Perry is a
qualified person for the purposes of Canadian National Instrument
43-101. The core drilling is being completed by Titeline Drilling
PL of Australia, and the assaying for gold is being done by
Northern Australian Labs in Pine Creek, Northern Territory,
Australia, with check assaying by ALS Chemex of Alice Springs,
Northern Territory, Australia. Multi-element analyses, including
copper, are being done by ALS Chemex of Alice Springs and NT
Environmental Laboratories Pty. Ltd. of Darwin, Northern Territory,
Australia. All holes were angle holes drilled to intersect
mineralization at close to right angles; however, due to physical
constraints and the complex nature of the deposit, true thickness
of the drilled intervals cannot be assumed from the measured
intercepts. Sampling and assaying methods are being conducted in
accordance with the CIM Mineral Exploration Best Practices
Guidelines. All samples taken were one meter in length. At present,
24 holes have been completed with gold assays received for six
holes drilled within the outline of the known mineralization. The
assays include the following highlights: Drill Interval Intercept
Assay Including Intercept Assay Hole (m) (m) (g/t) (m) (m) (g/t)
VB07-001 205-377 172 1.66 251-266 19 2.56 282-318 36 2.12 322-343
21 2.74 VB07-002 432-485 53 1.00 VB07-003 Abandoned and re-drilled
as VB07-005 VB07-004 121-315 194 1.07 130-136 6 1.81 191-202.9 11.9
3.76 246-253 7 3.80 283-290 7 2.26 VB07-005 22-27 5 2.17 94-98 4
2.30 138-143 5 1.77 150-156 6 1.17 268-274 6 2.54 302-327 25 2.72
313-318 5 7.36 334-363 29 2.01 VB07-006 157-162 5 2.68 200-211 11
2.21 246-264 18 2.92 276-282 6 3.52 378-420 42 1.45 VB07-011
101-123 22 1.01 190-197 7 2.85 232-239 7 1.18 The data, including
sampling and assaying, has been verified by Robert Perry, CPG,
Vista's qualified person for purposes of this news release. A
description of the geology, mineralization and other information on
the project can be found in the report "Preliminary Economic
Assessment Mt. Todd Gold Project, Northern Territory, Australia"
dated December 29, 2006, which has been filed on SEDAR by Vista.
Following the successful completion of the recent arrangement which
included Vista's transfer of its Nevada assets into a new Nevada
pure gold company, Allied Nevada Gold Corp. (AMEX:ANV) Toronto, and
the distribution of approximately 66% of the shares of the new
company to Vista shareholders, Vista will be focussing its efforts
on developing its four most advanced projects. Three of these
projects (Paredones Amarillos, Mt. Todd and Yellow Pine) have had
preliminary Canadian National Instrument 43-101 studies completed.
Information on the results of these studies has been released
earlier and indicates the development and operation of these
properties could be potentially profitable with current gold
prices. Vista's management believes that developing the Paredones
Amarillos, Mt. Todd and Yellow Pine projects to the point where
production decisions can be made could result in an increase in the
market valuation of the Corporation. These development programs
will involve the preparation of bankable feasibility studies,
permitting and other steps to eliminate uncertainties about the
economic and technical feasibility of the projects. The most
advanced project is Paredones Amarillos and Vista plans to advance
this project to a production decision by the third quarter of 2008.
Mike Richings, President and CEO, commented, "We are pleased with
the drill results at Mt. Todd so far; the early holes are designed
to supply the information that will allow the conversion of
inferred gold resources into measured and indicated gold resources.
These holes will also generate samples that we can assay for
copper, which was not determined in previous work on a consistent
basis. We believe, based on preliminary test work, copper is
pervasive throughout the deposit and Vista's preliminary evaluation
determined that a copper concentrate could be separated through
flotation, which would also contain about half of the gold. We
recognized from the outset that the Mt. Todd ore because of its
hardness and other metallurgical characteristics would be difficult
to process and the potential production of a copper concentrate at
a relatively coarse grind might offer a lower cost solution. With
respect to our decision to proceed to develop our most advanced
projects, this is a logical step. Our ability to increase our
valuation through acquisition of new projects is limited at current
gold prices. If we compare our valuation against similar sized
companies with similar projects, we have observed that companies
with projects actively under development and closer to a production
decision are generally accorded greater values by the market. Thus
we believe that by proceeding to develop the most advanced of our
projects to production decisions, the result could be a higher
valuation for the Corporation. We will continue to examine
opportunities to add resources at reasonable prices and to look for
other opportunities to extract value from our portfolio for the
benefit of our shareholders, but at current gold prices it makes
sense for us to add value through developing our best projects."
Since 2001, Vista has acquired a number of discovered gold projects
with the expectation that higher gold prices would significantly
increase their value. As gold prices have risen, Vista has
completed various preliminary evaluations that have confirmed that
some of the projects would be potentially viable operations at
today's gold prices. Currently, Vista is undertaking technical
programs to bring the most advanced projects to the point where
decisions can be made to put these projects into production, either
by Vista, or through sale or joint venture to other mining
companies. Vista's holdings include the Paredones Amarillos and
Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in
Australia, Yellow Pine Project in Idaho, Awak Mas Project in
Indonesia, Long Valley Project in California, and the Amayapampa
Project in Bolivia. 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,
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 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 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 operations of
environmental regulations in the countries in which it operates;
risks due to legal proceedings; risks relating to political and
economic instability in certain countries in which it operates; and
uncertainty of being able to raise capital on favorable terms or at
all; 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/
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