Vista Gold Corp. Announces Dismissal of Change of Forest Land Use Permit Application for the Paredones Amarillos Gold Project
19 Februar 2010 - 12:00PM
PR Newswire (US)
DENVER, Feb. 19 /PRNewswire-FirstCall/ -- Vista Gold Corp. ("Vista"
or the "Company") (TSX & NYSE Amex Equities: VGZ) announced
today that its wholly owned Mexican subsidiary, Minera Paredones
Amarillos S.A. de C.V. ("MPA") has received notice from the Mexican
Secretariat of Environment and Natural Resources ("SEMARNAT") that
SEMARNAT has dismissed, on administrative grounds, MPA's
application for the Change of Forest Land Use Permit ("CUSF") for
the Company's Paredones Amarillos gold project in Baja California
Sur, Mexico ("Paredones Project"). Specifically, SEMARNAT dismissed
the CUSF application, without a review of its substantive merit,
for MPA's alleged failure to satisfy certain procedural and
informational requirements. The CUSF is required before the Company
can commence construction of the Paredones Project. The Company is
currently amending its CUSF application to address SEMARNAT's
specific procedural and informational requirements and intends to
re-file the application shortly. In addition, while not formally
the basis for SEMARNAT's dismissal, SEMARNAT communicated what it
believes are additional issues with the Company's CUSF application,
which SEMARNAT stated it was not able to resolve due to a lack of
information, including: -- SEMARNAT's refusal to recognize the
validity of the Temporary Occupation Permits granted to MPA by the
Mexican General Direction of Mines, which are a pre-requisite to
filing for a CUSF, on the basis that the project is located in an
environmentally protected area over which the Mexican General
Direction of Mines does not have jurisdiction; -- The National
Commission for Biodiversity objects to the project on environmental
grounds; and -- MPA's failure to obtain an official communication
from the Mexican Natural Protected Areas Commission ("CONANP")
acknowledging CONANP's conformity with MPA's application for the
CUSF. While the Company believes these comments are without legal
merit and that several of the comments are beyond the scope of
SEMARNAT's legal authority in connection with a review of a CUSF
application, the Company expects the dismissal of the CUSF
application will delay the commencement of construction,
development and production of the Paredones Project. In addition to
re-filing its CUSF application, the Company is working with its
legal counsel and political experts in Mexico on a broader strategy
for the advancement of the permitting process for the Paredones
Project. This includes a potential court challenge to SEMARNAT's
dismissal of the CUSF application as the Company's advisors believe
the legal basis for the dismissal was incorrect. The Company will
continue to provide information and updates as they become
available. 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. For more information about our
projects, including technical studies and resource estimates,
please visit our website at http://www.vistagold.com/. 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. The
results of a preliminary economic assessment completed in 2009 on
the Mt. Todd gold project in Australia are encouraging and Vista is
undertaking a pre-feasibility study and additional resource
drilling to advance the project. 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. 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 amendment of the CUSF and the anticipated re-filing of the
CUSF with the SEMARNAT, the Company's belief that SEMARNAT's
comments on the CUSF are without legal merit or beyond the scope of
SEMARNAT's legal authority, the possible court challenge to
SEMARNAT's notice, the Company's strategy for advancement of the
permitting process for the Paredones Project, the possible
reduction of reserves at the Paredones Project if the CUSF cannot
be obtained, the timing for commencement of construction,
development and production for the Paredones Project, estimates of
mineral resources and mineral reserves, the potential to enhance
the project economics of the Mt. Todd gold project through
additional resource drilling, the timing for completion and
expected results of the pre-feasibility study, favorable effects of
Mt. Todd project economics, the results of the preliminary economic
assessment, and other such matters are forward-looking statements
and forward-looking information. When used in this press release,
the words "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 regarding the amendment and
re-filing of the CUSF, uncertainty regarding the SEMARNAT's review
of the amended CUSF application, risks related to the Company's
failure to obtain approval of the CUSF and begin construction of
its Paredones Project, including unanticipated delays in beginning
construction of the project due to a lack of obtaining the CUSF and
the possible reduction of mineral reserves to mineral resources,
uncertainty regarding potential court action against SEMARNAT in
relation to the dismissal of the CUSF application and risks related
to the outcome of such court action, including failure to receive
approval of the CUSF application, uncertainty regarding the
Company's legal challenges to SEMARNAT's issues with the CUSF and
SEMARNAT's authority in reviewing the CUSF application, uncertainty
and risks regarding any political factors influencing the approval
of the CUSF, possible impairment or write down of the carrying
value of the Paredones Project if the CUSF is not granted,
uncertainty of resource and reserve estimates, estimates of results
based on such resource and reserve estimates, risks relating to
cost increases for capital and operating costs, risks relating to
delays in the completion of the drilling program, risks related to
the adequacy of the design of the drilling program, risk regarding
the pre-feasibility study, risks relating to the 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
November 9, 2009, and other documents filed with the U.S.
Securities and Exchange Commission and Canadian securities
regulatory authorities. 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 National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("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 U.S. Securities and
Exchange Commission. Mineral resources that are not mineral
reserves have no demonstrated economic viability. The resource
information contained in this press release is not comparable to
similar information disclosed by U.S. companies. 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/
Copyright