DENVER, April 27, 2011 /PRNewswire/ -- Vista Gold Corp.
(TSX & NYSE Amex Equities: VGZ) ("Vista" or the
"Company") is pleased to announce that it has completed a detailed
review of the historic data from the Guadalupe de los Reyes
gold-silver project located in Sinaloa,
Mexico, and that the Company intends to commence field
exploration work at Guadalupe de los Reyes this May. Gold and
silver were produced from the property from the mid-1700s to the
mid-1900s. Historic production, as reported in the National
Registry records for the period 1872 to 1989, is 319,000 ounces of
gold and 15 million ounces of silver. This estimate does not
include undocumented production from 1772 to 1872.
During the 1990s, the property was explored by a succession of
companies that included Northern Crown Mines Ltd., Minas de San
Luis S.A. de C.V., Meridian Gold Company and Grandcru Resources
Corp. These companies generally focused on exploring for
shallow mineralization that could be mined by open pit mining
methods. The drill results generated by these companies were
used by Pincock, Allen & Holt ("PAH") of Lakewood, Colorado, to complete a mineral
resource estimation for the district that was reported in the
43-101 technical report entitled "Technical Report for the
Guadalupe de Los Reyes Gold-Silver Project, Sinaloa, Mexico," dated August 12, 2009 and amended and restated
December 8, 2009 (the "Technical
Report"). The 2009 gold resource estimate was completed by or under
the supervision of Mr. Leonel Lopez,
C.P.G., an independent Qualified Person as defined by Canadian
National Instrument 43-101, utilizing standard industry software
and resource estimation methodology. Mr. Lopez has reviewed
and consented to the disclosure in this press release. Please refer
to our press release dated September 3,
2009 for more details. The following table summarizes the
estimate of remaining mineral resources and does not include
material that was previously mined by underground mining
activities.
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Guadalupe de
los Reyes Gold-Silver Project - Mineral Resource
Estimates
(0.50 g/t
Cutoff)
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Metric
Tonnes
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Gold
Grade
(g/t)
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Contained
Gold Ounces
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Silver
Grade
(g/t)
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Contained
Silver Ounces
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Indicated (1)
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10,048,000
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1.50
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484,000
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25.74
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8,313,900
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Inferred (2)
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4,888,000
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2.02
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316,800
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59.98
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9,425,500
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1.) Cautionary Note to U.S.
Investors concerning estimates of Indicated Resources:
This table uses the term
"indicated resources". We advise U.S. investors that while this
term is recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission ("SEC") does not recognize it.
The SEC normally only permits issuers to report mineralization that
does not constitute "reserves" as in-place tonnage and grade
without reference to unit measures. The terms "contained gold
ounces" and "contained silver ounces" used in this table are 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 table uses the term
"inferred resources". We advise U.S. investors that while this term
is recognized and required by Canadian regulations, the SEC does
not recognize it. "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
"reserves" as in-place tonnage and grade without reference to unit
measures. The terms "contained gold ounces" and "contained
silver ounces" used in this press release are 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.
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The Technical Report recommended that further exploration and
metallurgical testing of the known deposits and additional
exploration targets should be undertaken to fully evaluate the
project's potential.
Based on the PAH report and our own review of historic mining
records, and the surface maps and results of previous surface
sampling and shallow drilling conducted by other companies, Vista
has identified 13 priority target areas on which we plan to begin
exploration field work commencing in May. The Company plans
to complete field mapping and define drill targets in the 2nd
quarter, and expects to commence a 4,500 meter drilling program in
the 3rd quarter of 2011.
Exploration took place from 1988-2002, a period during which the
silver price ranged from $4-6 per
ounce and there was little incentive to evaluate the geologic
potential for higher grade silver zones, similar to those which
existed in the vein system mined by previous underground mining
operations. Equally important, no significant studies were
completed to fully evaluate the production potential of silver with
extensive metallurgical testing. Vista's drill plan is focused on
examining the potential for expansion of the bulk mineable resource
estimates already identified and the high grade potential of the
underground minable vein systems in the district and in the lower
zones of the historic mine operations. Following the drilling
program, Vista plans to commence a systematic metallurgical testing
program so that the economic potential of the deposit can be
evaluated. The style of mineralization is similar to that of
Primero Mining's Tayoltita
operation located 60 kilometers to the southeast with a historical
production of greater than 9 million ounces of gold and 600 million
ounces of silver. Vista owns 28 contiguous claims in the
Guadalupe district with a total area of 6,790 hectares (16,779
acres).
Commenting on the Company's recent detailed reviews of the
Guadalupe de los Reyes gold-silver project, Fred Earnest, Vista's President and COO stated,
"Vista consolidated the Guadalupe district in 2008 and we have
worked over the last two years to compile and study, in detail, the
data generated by prior owners and other companies who have
explored in the district. Based on this review, we believe
that there is potential to expand the existing lower grade resource
estimates which are amenable to open pit mining and to expand the
underground potential which has not been previously fully
evaluated. We believe high silver and gold ratios found in historic
production estimates and in the PAH resource estimates represent an
exciting opportunity at today's higher gold and silver prices.
We are excited about the potential to grow the project's
previously estimated resources. We have also been impressed
with our early discussions with government officials from the
State of Sinaloa who have
indicated their willingness to assist us in our programs to develop
the potential of the property."
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-silver project in
Mexico, the 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, estimates of mineral resources, the conversion of inferred
mineral resources to measured and indicated resources, the
conversion of mineral resources to mineral reserves, the potential
to expand the resource base at the Guadalupe de los Reyes
gold-silver project, the anticipated timing, extent and focus of
the drilling program at the Guadalupe de los Reyes
gold-silver project, the opportunities in the market for the
high silver to gold ratios at the Guadalupe de los Reyes
gold-silver project 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,", "could",
"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 cost
increases for capital and operating costs; risks relating to delays
in the completion of the drilling program at Guadalupe de los
Reyes, risks related to the adequacy of the design of the drilling
program, risks related to the adequacy of the metallurgical
testing, 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 and
silver; 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; as
well as those factors discussed under the headings "Note Regarding
Forward-Looking Statements" and "Risk Factors" in Vista's latest
Annual Report on Form 10-K as filed on March
14, 2011, 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 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 "
"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
SOURCE Vista Gold Corp.