Vista Gold Corp., Mt. Todd Gold Project - 2008 Drilling Program Commences and Resource Estimate Completed for Silver and Copper
25 April 2008 - 1:19AM
PR Newswire (US)
DENVER, April 24 /PRNewswire-FirstCall/ -- Vista Gold Corp.
("Vista" or the "Company") (TSX & Amex: VGZ) is pleased to
announce that Canadian National Instrument 43-101 silver and copper
resource estimates for the Batman deposit at the Mt. Todd Gold
Project in Northern Territory, Australia have been completed on
April 24, 2008, by Tetra Tech of Golden, Colorado. These silver and
copper resource estimates were completed under the direction of Mr.
John Rozelle, P.G., an independent Qualified Person, utilizing
standard industry software and resource estimation methodology. Mr.
Rozelle has reviewed and verified the technical and scientific
information contained in this press release. These resource
estimates complement the updated gold resource estimate for the
Batman deposit announced by Vista in its press release dated
February 27, 2008. The resource estimates incorporate the results
of 9,460 assay intervals from 25 drill holes (all core holes)
drilled by Vista in 2007 with assaying completed by Northern
Australia Labs in Pine Creek and ALS-Chemex in Perth. These results
are in addition to the results of 87 copper assays completed on
random intervals from 730 drill holes (225 core, 435 reverse
circulation and 70 rotary drill holes) done by BHP Resources Pty
Ltd., Zapopan NL and Pegasus Gold Australia Pty Ltd. From the
un-mined portion of the 730 drill holes previously completed (by
BHP, Zapopan, & Pegasus), Vista submitted 2,979 intervals of
core for re-assay and multi-element analysis. The re-assay and
multi-element analysis was completed by ALS-Chemex in Perth and has
been incorporated into the resource estimates. The silver and
copper resource estimates presented below in Table 1 and Table 2,
respectively, represent only those silver and copper resources
contained within blocks previously classified as containing
Measured Gold Resources(1), Indicated Gold Resources(1), or
Inferred Gold Resources(2) in the February 26, 2008 gold resource
estimate for the Batman deposit. This is presented below in Table 3
for comparison. The gold, copper and silver resource estimates were
estimated using a cutoff grade of 0.50 grams of gold per tonne
(0.015 ounces of gold per ton). The estimates were prepared using
GEMCOM software and used whole block kriging to estimate block
values. Table 1 - Silver Resource Estimate Resource Metric Average
Short Average Contained Classification Tonnes Grade Tons Grade
Silver Ounces (x1000) (grams/tonne) (x1000) (ounces/ton) (x1000)
Measured(1) 43,543 1.43 47,987 0.042 2,002 Indicated(1) 45,746 1.53
50,425 0.045 2,261 Measured & Indicated(1) 89,280 1.48 98,413
0.043 4,263 Inferred (2) 58,816 1.71 64,832 0.050 3,231 Table 2 -
Copper Resource Estimate Resource Metric Average Short Average
Contained Classification Tonnes Grade Tons Grade Copper Pounds
(x1000) (% Cu) (x1000) (% Cu) (x1000) Measured(1) 43,543 0.05
47,987 0.05 45,014 Indicated(1) 45,746 0.05 50,425 0.05 48,765
Measured & Indicated(1) 89,280 0.05 98,413 0.05 93,744
Inferred(2) 58,816 0.05 64,832 0.05 56,815 Table 3- Gold Resource
Estimate Resource Metric Average Short Average Contained
Classification Tonnes Grade Tons Grade Gold Ounces (x1000)
(grams/tonne) (x1000) (ounces/ton) (x1000) Measured(1) 43,543 0.96
47,987 0.028 1,346 Indicated(1) 45,746 1.05 50,425 0.031 1,549
Measured & Indicated(1) 89,280 1.01 98,413 0.029 2,895
Inferred(2) 58,816 0.81 64,832 0.024 1,532 1) Cautionary Note to
U.S. Investors concerning estimates of Measured and Indicated
Resources: This document 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 document 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 minable. The
estimation of the silver and copper resources are important first
steps in determining the technical and economic feasibility of
Vista's proposed approach to the potential development of the Mt
Todd deposit. Vista proposes to use a flotation circuit to produce
a marketable copper concentrate, estimated to contain approximately
one half of the recoverable gold, which would be sold or toll
smelted. The copper would represent a by-product credit. Vista
completed a preliminary evaluation of this development approach and
the results were announced in January 2007. The preliminary
evaluation assumed copper grades of 400 parts per million or 0.04%,
the current resource estimate indicates copper grades approximately
25% higher at 0.05% copper. Metallurgical test work is currently in
progress to determine the process parameters for the flotation
circuit and to estimate the concentrate quality. Vista is also
testing various grinding technologies, including high pressure
crushing rolls (HPGR) to determine the most economical and
practical approach. Vista's metallurgical consultants have informed
Vista that HPGR technology may offer considerable savings in
operating costs over other types of ore grinding. For more
information on the preliminary evaluation and the resource estimate
completed in February 2008, please refer to Vista's January 4, 2007
and February 27, 2008 press releases or the Company's website
(http://www.vistagold.com/) for copies of the complete studies. A
technical report for the updated silver and copper resource
estimates will be filed on SEDAR on or before June 5, 2008. The
first of two drill rigs has arrived at Mt. Todd and started
drilling. Vista plans to complete more than 5,000 meters of core
drilling this year. We expect the second drill rig to be on site
and in operation by the end of April. The drilling program is
designed to increase the density of sampling, so that if
successful, the new information obtained will cause the Inferred
Resources(2) estimated in 2007 to be upgraded to Measured and
Indicated Resources(1) and to test the potential for increasing the
total resource estimate by sampling the down-dip extension of the
known resource. Fred Earnest, President and COO of Vista Gold
Corp., stated, "The 2007 drilling program was successful in adding
ounces to the Mt. Todd resource and increasing our understanding of
the deposit. This year's drilling program is designed to build on
that understanding and add to the resource base. The completion of
the silver and copper resource estimates is another step forward in
our systematic evaluation of the Mt. Todd deposit. We expect the
new resource model, coupled with the metallurgical testing
currently in progress, to allow us to capitalize on the experience
of previous owners and create value from the sources of previous
operational challenges." About Mt. Todd The Mt. Todd Project is
situated within the southeastern portion of the Early Proterozoic
Pine Creek Geosyncline. The Batman deposit geology consists of a
sequence of hornfelsed interbedded greywackes and shales with minor
thin beds of felsic tuff. Bedding consistently strikes at 325
degrees, dipping 40 to 60 degrees to the southwest. Northerly
trending sheeted quartz sulfide veins and joints striking at 0 to
20 degrees and dipping 60 degrees to the east are the major
location for mineralization in the Batman deposit. The veins are
0.04 to 4 inches in thickness with an average thickness of around
0.4 inches and occur in sheets with up to 6 veins per horizontal
foot. In general, the Batman deposit is 4,800 to 5,100 feet in
length by 1,200 to 1,500 feet in true width and 1,500 to 1,800 feet
in known down-dip extension (the deposit is open along strike and
at depth). The deposit has a drill hole spacing that varies from 80
feet by 80 feet to 260-330 feet by 260-330 feet and generally
averages 160 feet by 160 feet. All assaying was by fire assay on
50-gram charges with atomic absorption ("AA") finish. Tetra Tech
has advised us that quality control and quality assurance methods
employed by the various companies working at Mt. Todd were standard
at the time of the work. According to Tetra Tech, quality control
and quality assurance methods for previous drilling programs has
been audited several times by independent consultants. The 2007
drilling program consisted of 25 core holes resulting in a total of
9,460 assay intervals. As the Qualified Person, Mr. Rozelle
reviewed the quality control and quality assurance methods
implemented by Vista. Core was logged and cut under the direction
of Vista's geologists and half-core segments were sent to
independent labs in Pine Creek (Northern Australia Labs) and Perth
(ALS-Chemex) for sample preparation and fire assay analysis/AA
analysis. Both labs prepared and analyzed a statistically
significant number of duplicate samples. In addition to submitting
commercially acquired blanks and standards, Vista submitted pulps
for re-analysis to the opposing lab. Vista holds a large
exploration land package to the north and east of the Batman
deposit and will be undertaking preliminary exploration activities
on the prospective land package in 2008. Several localized soil
sampling programs were completed prior to the start of the wet
season in 2007. Plans are being made for the start of more
extensive field mapping and sampling programs with the expectation
that conditions in the field will allow the programs to resume in
April or May of this year. 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 the preparation of 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 and Long Valley Project in California. 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 plans for evaluation of the Mt. Todd Project including estimates
of silver, copper and gold resources, preliminary assessment
results and timing and anticipated results for drilling, field
mapping and sampling programs to be undertaken at the Mt. Todd
Project; potential for increasing estimated resources at the Mt.
Todd Project and potential for higher grade mineralization at the
Mt. Todd Project; estimates of ore reserves at the Batman deposit;
estimates of silver and copper grades at the Batman deposit and
results of metallurgical studies in connection with recovery of
copper and gold in a marketable concentrate, and effectiveness of
high pressure crushing rolls to process hard mineralized material;
anticipated timing and results for preliminary and definitive
feasibility studies to be undertaken at the Mt. Todd Project;
anticipated timing and results for a definitive feasibility study
being undertaken at the Paredones Amarillos Project; anticipated
timing for construction and development activities at the Paredones
Amarillos 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; and other such matters are
forward-looking statements and forward-looking information. When
used in this press release, the words "will", "design", "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 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 delay in the current timing for completion
of the preliminary and definitive feasibility studies; 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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