DENVER, March 2, 2011 /CNW/ -- Vista Gold Corp. (TSX & NYSE
Amex Equities: VGZ) ("Vista" or the "Company") today announced that
it has received from Midas Gold, Inc. ("Midas") the reports
containing estimates of the gold mineral resources for the Hangar
Flats and West End deposits. These two gold deposits are located
close to Vista's Yellow Pine project. As previously announced,
Vista and Midas have entered into a Combination Agreement pursuant
to which Vista and Midas have agreed to combine Midas' Hangar Flats
and West End deposits with Vista's Yellow Pine project (the
"Combination") into a new company, Midas Gold Corp. ("Midas Gold").
Assuming the completion of the Combination, Vista will own 35% of
the shares of Midas Gold. Completion of the Combination is subject
to a number of conditions, including receipt of approval of the
shareholders of Midas and other customary approvals and closing
conditions. The completion of the Combination is expected to occur
in April 2011, following the approval of Midas' shareholders. Key
Midas shareholders and management have entered into voting support
agreements pursuant to which they have agreed to vote in favor of
the Combination. Highlights of the new resource estimates for
Hangar Flats and West End deposits indicate: -- Combined estimated
indicated mineral resources of 1.7 million oz of gold -- Combined
estimated inferred mineral resources of 1.6 million oz of gold --
Multiple advanced exploration targets with potential to grow the
resource base Combined with Vista's Yellow Pine deposit the new
project, known as Golden Meadows, will have an estimated 3.95
million ounces measured and indicated mineral resources and 2.4
million ounces of inferred mineral resources, based on current
estimations. Also, Golden Meadows will have multiple advanced
exploration targets with potential to expand the existing resource.
Commenting on the proposed combination Vista's Executive Chairman
and CEO, Mike Richings, stated: "We acquired Yellow Pine in 2003
when gold prices were low. The project had a substantial gold
resource but because of a limited land position, Yellow Pine did
not have significant exploration upside on its own and was
additionally burdened by a 5% NSR royalty. As this royalty and the
surrounding land is held by Midas, the logic for combining our
interests was compelling. By retaining a 35% interest in the
combined properties, we will have a significant interest in a major
gold district and gain exposure to the potential for new
discoveries on Midas Gold's properties. The combined holdings of
Midas Gold will total 12,720 acres, with multiple, advanced
exploration targets along identified trends. We believe the
Combination with Midas is key to unlocking the full potential value
of Yellow Pine and the Yellow Pine-Stibnite gold district." The
independent resource estimate for our Yellow Pine deposit was
initially announced by Vista on November 19, 2003, and the "Yellow
Pine Project, Idaho, USA, Technical Report" dated November 17, 2003
was filed on SEDAR on December 12, 2003. Vista subsequently
incorporated those mineral resource estimates in the "Preliminary
Assessment of the Yellow Pine Project, Yellow Pine, Idaho" dated
December 13, 2006 (the "PEA") filed on SEDAR on December 15, 2006.
The PEA was prepared by Pincock, Allen and Holt (PAH) under the
direction of Mr. Barton Stone. Mr. Stone is an independent
qualified person as defined by Canada's National Instrument 43-101
("NI 43-101") and has reviewed and consented to the disclosure in
this release. The mineral resource estimates for the Hangar Flats
and West End deposits were prepared by SRK Consulting (US) Inc.
("SRK") in accordance with NI 43-101 under the direction of Mr.
Bart Stryhas, PhD, CPG, an independent qualified person as defined
by NI 43-101. Mr. Bart Stryhas has reviewed and consented to the
disclosure in this release. Midas Gold has previously announced
that it has retained SRK to complete a new mineral resource
estimate for Vista's Yellow Pine deposit. Midas has advised us that
it expects the study to be completed by the end of March 2011. The
SRK reports for Hangar Flats and West End Deposits can be found on
the Midas website www.midasgoldinc.com. The PAH technical reports
can be found at the Company's website at www.vistagold.com and the
SRK reports on Hangar Flats and West End addressed to Vista will be
filed on SEDAR within 45 days of this release and will at that time
be posted on Vista's website. Based on the SRK and PAH technical
reports, the estimated gold resources for the Golden Meadow's
project are: Contained Measured & Indicated Cut-off Tonnes Gold
Grade Gold -------------------- ------- ------ ---------- ---------
Resources(1)(3) Grade (g/t (millions) (g/t) (000s oz)
--------------- ---------- ---------- ----- --------- gold) -----
Yellow Pine (4) Measured 0.86 14.82 2.41 1,147 Indicated 0.86 15.88
2.10 1,071 ========= ==== ===== ==== ===== Measured & Indicated
0.86 30.70 2.25 2,218 -------------------- ---- ----- ---- -----
Hangar Flats Sulphide Indicated 0.65 9.70 2.00 625 West End Oxide
Indicated 0.27 7.50 0.96 232 West End Sulphide Indicated 0.55 18.30
1.51 889 ========= ==== ===== ==== === West End & Hangar Flats
(5) Indicated 35.50 1.53 1,746 Golden Meadows Combined (5) Measured
14.82 2.41 1,147 Indicated 51.38 1.71 2,817 ========= ===== ====
===== Measured & Indicated 66.20 1.86 3,964
-------------------- ----- ---- ----- Contained Inferred
Resources(2)(3) Cut-off Tonnes Gold Grade Gold
------------------------ ------- ------ ---------- --------- Grade
(g/t (millions) (g/t) (000s oz) ---------- ---------- -----
--------- gold) ----- Yellow Pine (4) Inferred 0.86 14.56 1.75 819
-------- ---- ----- ---- --- Hangar Flats Oxide Inferred 0.30 1.50
0.79 38 Hangar Flats Sulphide Inferred 0.65 15.6 2.44 1,223 West
End Oxide Inferred 0.27 1.16 0.83 31 West End Sulphide Inferred
0.55 7.71 1.40 348 ======== ==== ==== ==== === West End &
Hangar Flats (5) Inferred 25.97 1.96 1,640 -------- ----- ----
----- Golden Meadows Combined (5) ----------------------- Inferred
40.53 1.89 2,459 -------- ----- ---- ----- Cautionary Note to U.S.
Investors concerning estimates of Measured and Indicated Resources:
This press release and the resource analysis report use the terms
"measured resources", "indicated resources" and "measured and
indicated resources". We advise U.S. investors that while these
terms are recognized and required by Canadian regulations, these
terms are not defined terms under the United States Securities and
Exchange Commission's (the "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
SEC Industry 1) Guide 7 reserves. 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 recognized 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 2) resource
exists or is economically or legally minable. All mineral resources
reported for Hangar Flats and West End are hosted in Whittle pit
shells as described in the SRK technical reports. Midas Gold has
engaged SRK to prepare a new mineral resource estimate in
accordance with NI 43-101 for Vista's Yellow Pine deposit which
could result in changes to the current PAH mineral estimate due to
different approaches to mineral resource 3) estimation and economic
conditions. The PEA dated December 16, 2006 reports the estimated
Yellow Pine resources in imperial units (ie. short tons and ounces
gold per short ton). For comparative purposes, the estimated Yellow
Pine resources have been converted to metric units (ie. tonnes and
4) grams gold per tonne). Each deposit and mineralization type (ie.
oxides and sulfides) has been modeled based on different economic
parameters and no attempt has been made to calculate a weighted
average cut-off 5) grade. Totals are included for illustrative
purposes only. Hangar Flats Mineral Resource Estimate
Mineralization associated with the Hangar Flats deposit has a
primary structural control. The Meadow Creek fault zone and
adjacent quartz monzonite units are the primary hosts for gold
mineralization. The Meadow Creek fault zone consists of two high
angle faults, both striking north-south and dipping 80° to 85°
west. The geology and grade of the deposit have been modeled using
industry standard software and methodologies. The resource database
for the Hanger Flats deposit is comprised of 137 drillholes
totaling 17,245m (including 37 core holes drilled in 2009 and 2010)
and 2,652 underground samples totaling 4,173m. The grades have been
estimated using an inverse distance squared algorithm. The results
of the resource estimation provided a CIM classified indicated and
inferred mineral resource estimate. SRK reports that the mineral
resources were classified mainly on sample support and sample
spacing. The cut-off grades for the oxide and sulfide resources
were calculated at a gold price of $1,200 per ounce and reflect the
existence of a 5% NSR royalty and differences in recoveries and
processing costs that are expected to be associated with the
different ore types. The mineral resources are confined within a
conceptual Whittle® pit design based on the same parameters used
for the cut-off grade and a 45° pit slope. West End Mineral
Resource Estimate Mineralization associated with the West End
deposit has a primary structural control and a secondary lithologic
control. The West End fault zone consists of three, major high
angle faults striking at azimuth 30° and dipping 50 to 75°
southeast. The width of the fault zone, as measured between the
Footwall and the Hanging Wall faults, varies from 100 to 300 ft.
The geology and grade of the deposit have been modeled using
industry standard software and methodologies. The resource database
for the West End deposit is comprised of 622 drillholes, totaling
181,783ft. There are 517 reverse circulation drill holes and 105
core holes. The grades have been estimated using an inverse
distance squared algorithm. The results of the resource estimation
provided a CIM classified indicated and inferred mineral resource
estimate. SRK reports the quality of the drilling and data is very
good and the mineral resources were classified mainly according to
the general drillhole spacing. The cut-off grades for the oxide and
sulfide resources were calculated at a gold price of $1,200 per
ounce and reflect differences in recoveries and processing costs
that are expected to be associated with the different ore types.
The mineral resources are confined within a conceptual Whittle® pit
design based on the same parameters used for the cut-off grade and
a 50° pit slope based on historic mining practices. Yellow Pine
Mineral Resource Estimate The Yellow Pine mineral resource
estimates were prepared in 2003 and incorporated into a preliminary
economic assessment filed on SEDAR on December 15, 2006. The Yellow
Pine resources were calculated using data from 538 reverse
circulation and core drill holes totaling 36,857 meters. Vista has
not completed any drilling on the Yellow Pine project since 2003.
Exploration Potential at the Combined Golden Meadows Project The
combined Golden Meadows project, assuming completion of the
Combination, contains potential to grow the existing resource and
to discover new deposits. The Hangar Flats trend is open to the
north, where mineralization has been continuously traced by
trenching, wide spaced drilling and underground exploration drifts
for a distance approximately equivalent to that currently hosting
the currently defined mineral resources at Hangar Flats. The West
End mineral resource is open along strike to the NE and SW and down
dip to the SE. Midas has indicated that these areas will be a
priority exploration focus in 2011. In addition, the Yellow Pine
deposit remains open to expansion in a number of directions,
particularly on strike to the NE. This potential is also expected
be evaluated by Midas Gold in 2011. For further exploration see
information contained on the Midas Gold website:
www.midasgoldinc.com. Vista's President & COO, Fred Earnest,
stated: "The consolidation of the district presents an opportunity
to fully evaluate the exploration potential of the district without
the constraints of fractional ownership. The interrelated nature of
the deposits in this district has not previously been fully
evaluated. We are pleased with the results of Midas' 2010
exploration program and look forward to the implementation of this
year's exploration plans. Midas' management has discussed with us
its comprehensive program for 2011 designed to confirm and expand
existing resource estimates, to follow up on and further delineate
advanced targets and to test some interesting new areas identified
in Midas' previous field programs." About Vista Gold Corp. Vista is
focused on the development of the Mt. Todd gold project in Northern
Territory, Australia, and the Concordia gold project in Baja
California Sur, Mexico, 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. Forward-Looking Statements 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 completion of the Combination, the
impact and benefit of combining Vista's Yellow Pine gold project
with Midas' Hangar Flats and West End deposits, the potential to
expand existing resources and for new discoveries, the impact of
the Combination on our share price, the timing and completion of
SRK's technical report on Yellow Pine, potential changes in our
current Yellow Pine mineral resource estimate, results of Midas'
2011 exploration plan, estimates of mineral resources, the
conversion of inferred resources to measured and indicated
resources, the conversion of mineral resources to mineral reserves,
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, risks that Vista's, Midas' or Midas Gold's
acquisition, exploration and property efforts will not be
successful, risks that may affect Vista's or Midas' ability to
complete the Combination, including risks that Midas may be unable
to obtain the required shareholder approval, uncertainty of reserve
and resource estimates, estimates of results based on such reserve
and resource and reserve estimates; risks relating to completing
metallurgical testing; uncertainty of future feasibility study
results; risks relating to cost increases for capital and operating
costs including cost of power; risks relating to delays at Yellow
Pine, Hangar Flats and West End projects; 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 16, 2010, and Quarterly Report on Form 10-Q, as
filed on November 9, 2010, and other documents filed with the SEC
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 and
reserve 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 www.vistagold.com DENVER,
March 2, 2011 /CNW/ -- Connie Martinez, +1-720-981-1185, for Vista
Gold Corp. Web Site: http://www.vistagold.com
http://www.midasgoldinc.com
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