Vista Gold Corp. Announces Updated Capital and Operating Cost Estimates for Its Paredones Amarillos Project, Mexico
14 Februar 2008 - 12:20AM
PR Newswire (US)
DENVER, Feb. 13 /PRNewswire-FirstCall/ -- Vista Gold Corp. ("Vista"
or the "Corporation") (Amex: VGZ; TSX: VGZ) is undertaking a
definitive feasibility study for its Paredones Amarillos Project,
as previously reported, that will examine potential development
scenarios in the range of 130,000 - 150,000 ounces of gold
production per year from the gold resources at the project. Vista
intends to publish regular updates on technical and economic
changes and progress during the development of the Paredones
Amarillos Project. As part of the feasibility study, the
Corporation's consultants have been considering alternative
processing flow sheets. Preliminary studies by Vista proposed the
use of flotation and leaching of the flotation concentrate, while
earlier extensive evaluation and design work had been completed by
Echo Bay Mines on whole-ore leach using carbon-in-pulp gold
recovery. The Corporation intends to focus its development efforts
now on the whole-ore leach process, because of the estimated lower
capital and operating costs, potentially higher gold recovery,
better equipment compatibility with the used mill equipment Vista
is purchasing and the fact that Echo Bay Mines had completed
essentially all permitting associated with this process
alternative. Vista's managing technical consultant for the
definitive feasibility study, SRK Consulting (US), Inc. of
Lakewood, Colorado, has updated operating and capital cost
estimates based on preliminary estimates prepared by the
consultants retained to complete the definitive feasibility study.
The updated estimates incorporate actual prices for a substantial
portion of the mill equipment and budget prices for mine equipment.
The cost estimates are based in part on information found in the
report filed under Vista Gold Corp. on SEDAR: "Updated Technical
Report, Paredones Amarillos Project, Baja California Sur, Mexico",
dated June 20, 2007, prepared under the direction of Mr. Neil
Prenn, an independent qualified person. The cost estimates assume
an open pit mine and whole-ore leach processing with estimated
metallurgical recovery of 91.5% to produce an average annual gold
production of 117,000 ounces of gold per year over its 12.4-year
life. The preproduction capital and preproduction development costs
for the project using the whole-ore leach process are estimated to
be approximately US$169.1 million and the operating costs are
estimated to be approximately US$12.53 per tonne of ore processed,
which represents an increase in the amounts previously disclosed in
the Corporation's press release dated June 21, 2007. Work on the
project is still ongoing and as a result, the estimated
preproduction and estimated operating costs may change as further
work is conducted. Fred Earnest, President and COO, commented, "The
updated capital and operating cost estimates reported today reflect
the results of significant work completed by the consultants
retained to complete the definitive feasibility study for the
Paredones Amarillos Project. While that study is not expected to be
completed until the beginning of the third quarter of this year, we
are satisfied that these estimates reflect current costs of
materials, supplies and labor and the work constitutes a
comprehensive analysis of the estimated project costs. The analysis
incorporates actual costs for the mill equipment the Corporation
has purchased and budgetary costs for the mining fleet. With these
cost estimates completed, considerable work is in progress to
optimize the mine plans, production rates and to achieve
improvements in other areas." About Vista Gold Corp. Since 2001,
Vista has acquired a number of gold projects with the expectation
that higher gold prices would significantly increase their value.
Vista is undertaking programs to advance the Paredones Amarillos
Project, including a definitive feasibility study and the purchase
of long delivery equipment items, so that construction can begin
during the second half of 2008. The results of a preliminary
assessment completed in 2007 on the Mt. Todd Project in Australia
were encouraging and additional technical studies are underway with
a definitive feasibility study planned for completion by mid-2009.
Vista's other holdings include the Guadalupe de los Reyes Project
in Mexico, Yellow Pine Project in Idaho, Awak Mas Project in
Indonesia, Long Valley Project in California, and 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 and forward-looking
information within the meaning of Canadian securities laws. 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 contemplated development scenarios for the
Paredones Amarillos Project; progress, scheduling and results of
the ongoing definitive feasibility study at the Paredones Amarillos
Project; operating cost estimates; gold recovery estimates;
compatibility of purchased equipment to be used at the Paredones
Amarillos Project with anticipated processing methods for the
Project; status of permits for the Project, production estimates,
mine life; cost estimates including equipment costs and estimates
of preproduction costs, operating costs and cash costs; potential
advantages of a whole-ore leach processing method for the Project;
potential optimization of mine plans, production rates and other
improvements; anticipated timing for construction and development
activities at the Paredones Amarillos Project; plans for evaluation
of the Mt. Todd Project including preliminary assessment results
and timing and results for a definitive feasibility study to be
undertaken at the Mt. Todd Project; Vista's future business
strategy, competitive strengths, goals, operations, plans,
potential project development, future share price and valuation;
future gold prices; Vista's potential status as a producer
including plans, timing and targeted initial production levels; and
other such matters are forward-looking statements and
forward-looking information. When used in this press release, the
words "estimate", "plan", "anticipate", "expect", "intend",
"believe" and similar expressions are intended to identify
forward-looking statements and forward-looking information. 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
statements. Such factors include, among others, uncertainty of
preliminary assessment results and of feasibility study results and
estimates on which such results are based; risks relating to
scheduling for feasibility studies; risks relating to cost
increases for capital and operating costs including cost of power;
risks relating to delays in commencement and completion of
construction at the Paredones Amarillos Project and the Mt. Todd
Project; risks of shortages of equipment or supplies; risks of
inability to achieve anticipated production volume or manage cost
increases; 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
and Canadian securities commissions. Although Vista has attempted
to identify important factors that could cause actual results to
differ materially from those described in forward-looking
statements and forward-looking information, 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. Except as
required by law, Vista assumes no obligation to publicly update any
forward-looking statements or forward-looking information, whether
as a result of new information, future events or otherwise. The
forward-looking statements in this press release are based, in
part, upon certain assumptions made by Vista and its consultants
including, but not limited to no material variation in the
forecasted production rates; no material delay in the current
timing for completion of the definitive feasibility study; no
material delays in the securing of environmental permits; adequacy
and availability of labor, water, and power; no material delays in
the acquisition of surface rights; no material delays in the start
and completion of construction; and no material changes in prices
of labor, materials and supplies other than normal inflation. For
further information, please contact Connie Martinez at (720)
981-1185, or visit the Vista Gold Corp. website at
http://www.vistagold.com/ DATASOURCE: Vista Gold Corp. CONTACT:
Connie Martinez of Vista Gold Corp., +1-720-981-1185 Web site:
http://www.vistagold.com/
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