Vista Gold Corp. Announces Board Approval for Preparation of a Pre-Feasibility Study on its Mt. Todd Gold Project
24 Juni 2009 - 3:15AM
PR Newswire (US)
DENVER, June 23 /PRNewswire-FirstCall/ -- Vista Gold Corp.
("Vista") (TSX & NYSE Amex Equities: VGZ) is pleased to
announce that following a review of the results of the recently
completed Preliminary Economic Assessment ("PEA"), the Board has
approved the expenditure of funds for the preparation of a
Preliminary Feasibility Study ("PFS") on its Mt. Todd gold project.
Vista has awarded a contract to Tetra Tech Inc. of Golden,
Colorado, to manage and prepare the PFS in accordance with Canadian
National Instrument 43-101-Standards of Disclosure for Mineral
Projects ("NI 43-101"). The contract for the process and
infrastructure engineering portion of the PFS has been awarded to
Ausenco Limited of Queensland, Australia. In addition, Resource
Development inc. of Denver, Colorado, will continue to supervise
metallurgical testing and act as metallurgical consultant. The PFS
will be based on the base case scenario presented in the PEA,
except that in accordance with NI 43-101, the PFS will not include
inferred resources. The base case final pit, using a break-even
gold price of US$600 per ounce was estimated to contain 147.6
million tonnes of measured and indicated resources(1) with an
average grade of 0.90 grams gold per tonne, containing 4.25 million
ounces of gold. The goal of the PFS is to refine and optimize these
estimates to determine the potential economics of the proposed
operation. The PEA reported an estimated mine life of 15.2 years
with total estimated gold production of 3.7 million ounces
resulting in estimated pre-tax net cash flow of US$646.7 million at
a US$750 per ounce gold price. At the same gold price the pre-tax
NPV8 (net present value with an 8% discount rate) was estimated to
be US$232.9 million and the internal rate of return was estimated
to be 21.6%. Pre-production capital was estimated to be US$323.1
million. Cash operating costs were estimated to be US$453 per
ounce. The PEA is preliminary in nature and includes inferred
mineral resources, see Cautionary Notes 2 and 3. Fred Earnest,
President and COO of Vista, stated, "It was a logical decision to
spend the approximate US$1 million to complete the PFS, which
management believes will enable it to confirm the economic and
technical feasibility of the Mt. Todd gold project. If the
economics in the PEA are confirmed by the PFS, then we expect that
most of the measured and indicated resources(1) estimated in the
base case pit, as reported in the PEA, will be able to be
reclassified as proven and probable reserves(4). The PEA reflects
the results of two years of work that has more than doubled the
estimated gold resources at our Mt. Todd gold project and has
resolved satisfactorily what Vista believes are the most important
processing concerns left over from previous operations. While the
PEA used a gold price of US$750 per ounce (three-year trailing
average), the sensitivity analysis indicates an internal rate of
return of 37.7% at US$950 per ounce gold price and a pre-tax NPV8
of US$601.7 million. The preparation of the PFS and the potential
estimation of proven and probable reserves(4) is only the first
step. We believe the Mt. Todd property has the potential to host a
larger gold resource." Vista is currently developing plans to
undertake development drilling in the Batman Pit area to convert
inferred resources(2) to indicated resources or measured
resources(1) and to undertake exploration drilling on the mining
and exploration licenses at Mt. Todd. The PEA was prepared under
the direction of Mr. John Rozelle, an independent qualified person
under NI 43-101. The results of the PEA are outlined in a NI 43-101
technical report entitled "Mt. Todd Gold Project Updated
Preliminary Economic Assessment Report, Northern Territory,
Australia" and is dated June 11, 2009. The PEA is available on
SEDAR at http://www.sedar.com/. About Vista Gold Corp. Since 2001,
Vista has acquired a number of gold projects with the expectation
that higher gold prices would increase their value. In addition to
the Mt. Todd gold project discussed above, Vista has undertaken
programs to advance the Paredones Amarillos gold project, located
in Baja California Sur, Mexico, including a definitive feasibility
study, the purchase of long delivery equipment items, and the
purchase of land for the processing facilities, related
infrastructure and the desalination plant. Vista's other holdings
include the Guadalupe de los Reyes gold project in Mexico, Yellow
Pine gold project in Idaho, Awak Mas gold project in Indonesia, and
the Long Valley gold project in California. 1) Cautionary Note to
U.S. Investors concerning estimates of Measured and Indicated
Resources: This press release uses the terms "measured resources",
"indicated resources" and "measured & indicated resources." We
advise U.S. investors that while these terms are defined in and
required by Canadian regulations, these terms are not defined terms
under the U.S. Securities and Exchange Commission ("SEC") Industry
Guide 7 and are normally not permitted to be used in reports and
registration statements filed with the SEC. The SEC normally only
permits issuers to report mineralization that does not constitute
SEC Industry Guide 7 compliant "reserves" as in-place tonnage and
grade without reference to unit measures. The term "contained gold
ounces" used in this press release is not permitted under the rules
of the SEC. 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 press release uses
the term "inferred resources". We advise U.S. investors that while
this term is defined in and required by Canadian regulations, this
term is not a defined term under SEC Industry Guide 7 and is
normally not permitted to be used in reports and registration
statements filed with the SEC. "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. The SEC
normally only permits issuers to report mineralization that does
not constitute SEC Industry Guide 7 compliant "reserves" as
in-place tonnage and grade without reference to unit measures. The
term "contained gold ounces" used in this press release is not
permitted under the rules of the SEC. U.S. investors are cautioned
not to assume that any part or all of an inferred resource exists
or is economically or legally minable. 3) Cautionary Note
concerning economic analysis that include Inferred Resources:
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. This PEA is preliminary in nature
and it includes inferred resources 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 PEA will be realized.
4) Cautionary Note to U.S. Investors concerning estimates of
Reserves: This press release uses the term "mineral reserve". We
advise U.S. investors that while this term is defined in and
required by Canadian regulations, such definitions differ from the
definitions in the SEC Industry Guide. Under SEC Industry Guide 7
standards, a "final" or "bankable" feasibility study is required to
report reserves, the three-year historical average price is used in
any reserve or cash flow analysis to designate reserves and the
primary environmental analysis or report must be filed with the
appropriate governmental authority. This press release contains
forward-looking statements within the meaning of the U.S.
Securities Act of 1933, as amended, and U.S. Securities Exchange
Act of 1934, as amended, 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 the economic analysis, estimates of mineral resources, the
conversion of mineral resources to mineral reserves, life of mine
estimates, the potential for gold resources in the Batman deposit
and other targets within the Mt. Todd gold project, the preparation
of the PFS, future gold prices, the satisfactory resolution of
processing concerns at Mt. Todd, favorable effects of Mt. Todd
project economics, the estimated operating and capital costs and
the cash flow analysis and sensitivity analysis in the PEA, and
other such matters are forward-looking statements and
forward-looking information. When used in this press release, the
words "optimistic", "potential", "indicate", "expect", "intend",
"hopes," "believe," "may," "will," "if, "anticipate" 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 resource estimates, estimates
of results based on such resource estimates; risks relating to
completing metallurgical testing; risks relating to cost increases
for capital and operating costs; risks relating to delays at the
Mt. Todd Project; risks related to the ability to obtain the
necessary permits, risks of shortages and fluctuating costs of
equipment or supplies; risks relating to fluctuations in the price
of gold; the inherently hazardous nature of mining-related
activities; 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;
risks related to repayment of debt; risks related to increased
leverage and uncertainty of being able to raise capital on
favorable terms or at all; as well as those factors discussed under
the headings "Uncertainty of Forward-Looking Statements" and "Risk
Factors" in Vista's latest Annual Report on Form 10-K as filed on
March 13, 2009, as amended April 16, 2009, and Quarterly Report on
Form 10-Q, as filed May 6, 2009, 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. 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. Without
limiting the foregoing, this press release uses terms that comply
with reporting standards in Canada and certain estimates are made
in accordance with NI 43-101. NI 43-101 is a rule developed by the
Canadian Securities Administrators that establishes standards for
all public disclosures an issuer makes of scientific and technical
information concerning mineral projects. All mineral resource
estimates contained in this press release, including the terms
"measured mineral resources," "indicated mineral resources" and
"inferred mineral resources", have been prepared in accordance with
NI 43-101, and these standards differ significantly from the
requirements of the SEC. The resource information contained in this
press release is not comparable to similar information disclosed by
U.S. companies. See the Cautionary Notes to U.S. Investors above.
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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