Vista Provides Report on Status of Change of Land Use Permit for Paredones Amarillos Project and Expected Development Timetable
03 Juli 2008 - 3:05AM
PR Newswire (US)
DENVER, July 2 /PRNewswire-FirstCall/ -- Vista Gold Corp. ("Vista")
(TSX: VGZ; Amex: VGZ) reports on the status of the Change of Land
Use Permit for the Paredones Amarillos Project in Baja California
Sur ("BCS"), Mexico (as described in Vista's press releases dated
April 30, May 8, and May 21, 2008) and the expected development
timetable for the project. Vista has taken steps to preserve its
right to proceed with a judicial appeal of the opinion issued by
the BCS office of Secretariat of Environment and Natural Resources
(SEMARNAT) and has also completed a number of prerequisite steps to
submitting an application for a new Change of Land Use Permit.
Changes in the law governing the Change of Land Use Permit require
Vista to demonstrate that it has the right to use the surface
affected by the permit. Vista has recently received a certificate
from the General Direction of Mines of the General Coordinator of
Mines in the Ministry of Economy verifying that Vista's Mexican
subsidiary, Minera Paredones Amarillos S.A. de C.V. ("MPA"), is the
rightful holder of valid mineral rights for the Paredones Amarillos
Project. Vista has also recently received an official appraisal of
the surface land in the project area from the National Institute
for the Appraisal and Administration of National Property
(INDAABIN) confirming that the surface overlying a significant part
of these mineral rights (including the proposed pit and most of the
dumps) is federal land. Under Mexican mining statutes, MPA has the
constitutional right to use the surface for mining activities,
subject to applicable environmental permits and federal
authorizations. This position has been further confirmed in the
foregoing certificate issued by the General Direction of Mines of
the General Coordinator of Mines in the Ministry of Economy. One of
the mechanisms for authorizing the use of federal land for mining
activities is a Temporary Occupation Permit (lasting the life of
the mining activity). Vista is preparing an application for a
Temporary Occupation Permit and plans to submit the application
shortly. Vista has signed an agreement with a private landowner for
the purchase of the remaining surface land required by the project.
This land covers the area of the mill site, tailing impoundment and
various ancillary facilities. The documents supporting Vista's
right to use the surface, together with the existing and valid
environmental permit and other supporting documents currently being
prepared, will form the basis of the new Change of Land Use Permit
application. Vista plans to submit this application within the next
few weeks. Based on earlier discussions with the Secretary of
SEMARNAT (see Vista press release dated May 21, 2008), Vista's
management expects the application to be processed promptly and by
law within 60 working days after its filing; the foregoing in
accordance with those terms established in the applicable legal
provisions. Vista expects to complete the definitive feasibility
study for the Paredones Amarillos Project by mid-August and will
commence activities to arrange financing shortly afterwards. Based
on a preliminary schedule and assuming favorable results from the
definitive feasibility study, the successful completion of project
financing, and the issuance of a new Change of Land Use Permit,
construction of the Paredones Amarillos Project is expected to
commence before the end of 2008, with first gold production planned
to commence before the end of 2009. A detailed project schedule is
currently under preparation and will be made public as part of the
feasibility study results. Fred Earnest, President and COO,
commented, "While there is always uncertainty over timing
associated with these processes, Vista management and our advisors
are confident in our legal right to develop the Paredones Amarillos
Project. We look forward to commencing construction on this new
Mexican gold mine." 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. For more
information about our projects, including technical studies and
resource estimates, please visit our website at
http://www.vistagold.com/. 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 last
quarter 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
the 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 applicable
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
the timing and receipt of required land use, environmental and
other permits for the Paredones Amarillos Project and timing for
starting and completion of drilling and testing programs at the
Paredones Amarillos Project; plans to confirm the validity of the
Change of Land Use Permit for the Paredones Amarillos Project and
timing for confirmation of the status of this permit; timing for
completion of application process for new Change of Land Use Permit
for the Project and outcome of this application process; timing and
outcome for application for Temporary Occupation Permit for mining
activities at the Paredones Amarillos Project; plans to purchase
remaining surface land required by the Project; progress,
scheduling and the performance and results of feasibility studies
including the ongoing definitive feasibility study for the
Paredones Amarillos Project; potential funding requirements and
sources of capital; anticipated timing of commencement of
construction and commencement of production at the Paredones
Amarillos Project; contemplated development scenarios for the
Paredones Amarillos Project; preliminary assessment results and
plans for a feasibility study 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, 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 relating to delays and incurrence of additional costs in
connection with the feasibility study underway at our Paredones
Amarillos Project, including uncertainty relating to timing and
receipt for required governmental permits; uncertainty relating to
timing and receipt for confirmation of the validity of the Change
of Land Use Permit for the Paredones Amarillos Project, uncertainty
relating to timing and outcome of application process for new
Change of Land Use Permit for the Project; uncertainty relating to
timing and outcome for application for Temporary Occupation Permit
for mining activities at the Project; uncertainty relating to
completion of agreement for purchase of remaining surface land
required by the Project; uncertainty of feasibility study results
and preliminary assessments and of estimates on which such results
are based; risks relating to delays in commencement and completion
of construction at the Paredones Amarillos Project and Mt. Todd
Project; risks of significant cost increases; risks of shortages of
equipment or supplies; 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; uncertainty of being able to raise capital on
favorable terms or at all; and external risks relating to the
economy and credit markets in general; as well as those factors
discussed in Vista's latest Annual Report on Form 10-K, 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, 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, whether as a result of new information,
future events or otherwise. 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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