DENVER, July 19 /CNW/ -- Vista Gold Corp. ("Vista" or the
"Company") (TSX & NYSE Amex: VGZ) announced an update on its
wholly owned Paredones Amarillos gold project (the "Project")
located in Baja California Sur, Mexico ("BCS"). The update
discusses the status of the Change of Forest Land Use ("CUSF")
permit application, technical programs in progress, and a general
overview of the development of the Project. The Project is held by
Vista's wholly owned Mexican subsidiary, Minera Paredones
Amarillos, S.A. de C.V. ("MPA"). Change of Forest Land Use Permit
Application Status On February 19, 2010, the Company announced that
the Mexican Secretariat of Environment and Natural Resources
("SEMARNAT") had dismissed the Company's application for the CUSF.
In its dismissal, SEMARNAT had questioned the validity of the
Temporary Occupation Permits ("TOP") issued by the General
Direction of Mines in the Secretariat of Economy, which were
required as part of the CUSF application. SEMARNAT also identified
the need for additional technical studies. The Project is located
in a special use area on the northern limit of the buffer zone of
the Sierra de La Laguna Biosphere (the "Biosphere"). In the
immediate Project area, the surface land is divided between land
owned directly by the Company and a parcel of federal land which
has yet to be defined by a survey on the ground. The TOP apply to
both the privately held land and the federal land. In questioning
the validity of the TOP, SEMARNAT has requested confirmation of the
boundaries of the federal land, and is seeking to determine if some
or part of the federal land is subject to a prior request by the
Mexican National Commission for Natural Protected Areas ("CONANP")
to be the administrator of the federal land. The Company expects
that the Secretariat of Agrarian Reform ("SRA") will release
shortly the survey results and clarify what part of the federal
land is subject to CONANP's claim. Subsequently, MPA expects SRA to
grant CONANP's request to become the administrator of the
applicable part of the federal land in accordance with their
previous request. CONANP has indicated that it will administer the
federal land which lies within the buffer zone of the Biosphere in
accordance with the established management plan, which authorizes
mining activities in the area of the Project. The Company expects
this process to result in the validation of the TOP and recognition
of such by SEMARNAT. Following the validation of the TOP, MPA will
submit a new CUSF application. The timing for completion of these
types of bureaucratic processes is uncertain but the Company hopes
to be in a position to submit the CUSF application by the end of
the third quarter of this year. MPA is also working to resolve the
minor deficiencies identified in SEMARNAT's dismissal of the CUSF
application (please refer to Vista's press release dated February
19, 2010). MPA has contracted SRK Consulting (U.S.), Inc. of
Denver, Colorado, and several BCS academic institutions to review,
analyze and validate some of the information submitted as part of
the CUSF application. This will include additional hydrogeologic
studies, surface run-off calculations and a review of certain
baseline environmental data. The results will be submitted as part
of the CUSF application. MPA has retained the services of Herrera
Ordonez Abogados, a law firm based in Mexico City, to compile and
submit the new CUSF application. The principal lawyer in charge of
MPA's work is Mr. Hector Herrera who is a past chairman of the
Mexican Bar Association's Environmental Commission and has an
extensive background in working with SEMARNAT. Preliminary Project
Design, Permitting Support and Other Activities Vista has
contracted ICA Fluor with offices in Mexico City, Mexico, and
Dublin, California, to be the engineering, procurement and
construction management contractor for the Project. ICA Fluor's
initial scope of work includes basic engineering in support of
permitting activities. ICA Fluor is coordinating design work on the
access road, main power transmission line, processing plant,
tailings impoundment facility, desalination plant and water supply
pipeline. Following the submission of the new CUSF application, MPA
intends to present to SEMARNAT the documents to modify and extend
the Project's environmental permits that were issued in 1997 and,
unless extended by MPA, will expire in 2012. The modifications will
reflect the many design changes made to improve the Project and
enhance environmental protections which are now incorporated into
Vista's proposed development. MPA is in the process of finalizing
the remaining rights-of-way for the power transmission line and
water supply pipeline and is also in the process of preparing
appropriate permit applications for both. VWS Mexico, S.A. de C.V.
has been contracted to provide engineering and permitting support
for the desalination plant. Final studies for the design of the
facility are in progress and will be completed shortly. Upon
completion, the Company intends to file the appropriate permit
applications. MPA has established ASUDES, a civil association
(similar in function to a foundation). The goals of ASUDES are to
promote improved access to health care and more educational
opportunities for members of the Project's community. A number of
programs have been established in the area of health and education
which have been well received by the local communities. Fred
Earnest, Vista's President and COO, stated, "We have made
significant progress in establishing a better understanding of the
Project's permitting status and have improved our working
relationship with the regulatory agencies involved. Our recently
appointed General Manager, Hector Araya, has come up to speed very
quickly and is building strong relationships with the community and
local leaders of public opinion. We are working towards submitting
the new CUSF application by the end of the third quarter, and if
that occurs, we would expect it to be processed and approved early
in the first quarter of 2011. In the meantime, we are undertaking
various engineering programs to minimize the construction period,
currently estimated to be fifteen months, which means that gold
production could start by mid 2012." About Vista Gold Corp. Vista
is focused on the development of the Paredones Amarillos gold
project in Baja California Sur, Mexico, and the Mt. Todd gold
project in Northern Territory, Australia, to achieve its goal of
becoming a gold producer. Vista's other holdings include the
Guadalupe de los Reyes gold project in Mexico, the Yellow Pine gold
project in Idaho, the Awak Mas gold project in Indonesia, and the
Long Valley gold project in California. For more information about
our projects, including technical studies and resource estimates,
please visit our website at www.vistagold.com. 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 application and the anticipated
re-filing of the CUSF application with SEMARNAT, the Company's
belief that SEMARNAT's comments on the CUSF application 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 Project,
the possible reduction of reserves at the Project if the CUSF
cannot be obtained, the timing for commencement of construction,
development and production for the 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 gold
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 application, uncertainty regarding SEMARNAT's
review of the amended CUSF application, risks related to the
Company's failure to obtain approval of the CUSF application and
begin construction of its 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 application and SEMARNAT's authority in reviewing the CUSF
application, uncertainty and risks regarding any political factors
influencing the approval of the CUSF application, possible
impairment or write down of the carrying value of the 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, risks regarding the pre-feasibility study,
risks relating to the delays at the Mt. Todd gold 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
Vista 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 16, 2010 and Quarterly Report on Form
10-Q, as filed May 10, 2010, 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 www.vistagold.com. Connie
Martinez, +1-720-981-1185, for Vista Gold Corp. Web Site:
http://www.vistagold.com
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