DENVER, March 12, 2012 /PRNewswire/ --Vista Gold Corp.
(TSX & NYSE Amex Equities: VGZ) ("Vista" or the
"Company") is pleased to announce the initial results of the
current resource conversion drilling program at its Mt. Todd gold
project in Northern Territory, Australia, and provide an update on the
Company's development activities at the Mt. Todd gold project as
the definitive feasibility study nears completion. The Company has
decided to build a project development team in Australia and to evaluate the potential for a
larger project than contemplated in the feasibility study.
Conversion Drilling Program – Initial Results
As part of the ongoing Mt. Todd feasibility study process, Vista
generated a final pit design based on estimated measured and
indicated mineral resources. Subsequently, the Company determined
the limits of an economic pit using estimated measured, indicated
and inferred mineral resources. This economic pit design and the
location of inferred mineral resources relative to the feasibility
study pit design led the Company to commence an 8,500 meter
drilling program in November 2011
designed to convert estimated inferred mineral resources to
estimated measured or indicated mineral resources in areas that
could expand the feasibility study pit shape. The program is
ongoing and the first three holes have been logged and assayed. The
initial results are consistent with Vista's expectation that the
program will result in the reclassification of estimated resources
in the area between the two pit shapes. The following table
summarizes the results from the initial three holes:
Hole
#
|
Total
Depth
(meters)
|
Assay
Interval
|
Thickness
(meters)
|
Approx.
True
Thickness
(meters)
|
Gold
Grade
(gram/tonne)
|
VB11-012
|
|
469.0 –
479.0
|
10.0
|
9
|
4.05
|
|
|
487.0 –
650.0
|
163.0
|
150
|
1.50
|
|
including
|
621.0 –
632.0
|
11.0
|
10
|
7.38
|
|
|
722.0 –
743.0
|
21.0
|
19
|
1.66
|
VB11-013
|
|
97.0 –
107.0
|
10.0
|
7
|
1.42
|
|
|
146.0 –
242.0
|
96.0
|
65
|
1.16
|
|
including
|
195.0 –
208.0
|
13.0
|
9
|
3.05
|
|
|
269.0 –
280.0
|
11.0
|
8
|
1.49
|
VB11-014
|
704.9
|
155.0 -
168.0
|
13.0
|
12
|
0.57
|
|
|
312.0 –
326.0
|
14.0
|
13
|
0.46
|
|
|
332.0 –
342.9
|
10.9
|
10
|
0.47
|
|
|
348.0 –
355.0
|
7.0
|
6
|
0.55
|
|
|
381.0 –
391.8
|
10.8
|
10
|
0.73
|
|
|
488.9 –
499.6
|
10.7
|
10
|
0.58
|
|
|
503.0 –
510.0
|
7.0
|
6
|
0.54
|
|
|
521.0 –
556.0
|
35.0
|
32
|
0.81
|
|
|
561.0 –
600.0
|
39.0
|
36
|
0.88
|
|
|
608.0 –
631.6
|
23.6
|
22
|
0.61
|
|
|
637.0 –
657.1
|
20.1
|
18
|
0.72
|
|
|
673.0 –
680.9
|
7.9
|
7
|
0.59
|
The drill results, and particularly hole VB11-012, continue to
indicate that the Batman mineralization is open at depth and
exhibits increasing gold grades with depth. The results for hole
VB11-013 suggest that previous exploration in this part of the
deposit may have drilled below the up-rake, near surface expression
of the core zone of the deposit. Mineralization in the hanging wall
of the core zone is more widespread than has been previously
modeled and if we are successful, it is expected that additional
drilling of this style of mineralization within the limits of the
pit will convert modeled inferred mineralization and waste into
ore, resulting in a decrease in the stripping ratio. Based on these
initial results Vista has increased the size of its drilling
program and is presently sourcing an additional drill rig to
expedite the completion of the program.
The orientation of these drill holes relative to the Batman
deposit is shown on cross sections that can be found on the
Company's web site at
http://www.vistagold.com/mt_todd.php?subpage=batman. The sample
intervals are constrained by geology and range from a minimum of
0.2 meters to a maximum of 1.2 meters in length, but mostly average
1 meter. Mean grades are calculated using a 0.4 g Au/t cutoff with
no upper cap applied to assay values. The maximum length of
internal waste is 4.0 meters.
The drilling has been completed and the core has been logged,
photographed and sampled by employees or contractors of Vista Gold
Australia Pty Ltd. under the direction of Vista's Vice President of
Exploration, Mr. Frank Fenne P.G.,
who is a "Qualified Person" within the meaning of Canadian National
Instrument 43-101―Standards of Disclosure for Mineral Projects ("NI
43-101"). Samples were prepared and assayed by North Australia
Laboratories, Pine Creek, Australia. Second lab check assays were
completed by Genalysis Laboratory Services in Perth, Australia. Gold grades are based on a
50 gram fire assay method.
Core logging and sample custody, preparation and assaying were
completed in compliance with NI 43-101 standards.
Feasibility Study and Project Development Update
The current feasibility study is based on a 30,000 ore tonne per
day mine and the Company expects to announce the results before the
end of the first quarter of 2012 or shortly thereafter. Based on
the work done to date, the Company is initiating the process of
hiring a General Manager and starting to build an Australian-based
project development team. Also, the Company is advancing work to
evaluate a larger 40-45,000 tonne per day project based on the
presently anticipated mine life and the potential for additional
growth in project reserves.
As noted in this release, the Company believes that the drilling
program will result in an increase in the estimated measured and
indicated mineral resources at the Mt. Todd gold project. Based on
conceptual mine plans that include the targeted inferred mineral
resource blocks, the Company has reason to believe that an
additional increase in proven and probable reserves is also
possible and should be evaluated in an updated feasibility study
prior to a definitive project development decision. Moreover, the
anticipated life of the project has increased at the presently
contemplated processing rate of 30,000 tonnes per day. The Company
believes that a larger process facility may be justified, resulting
in a shorter mine life, increased annual production and more
efficient use of the mining equipment capital, with a general shift
in the production toward the start of the project and corresponding
improvements to the project's economics. The Company intends to
conduct an updated feasibility study based on a larger process
facility in order to appropriately evaluate the potential costs and
benefits prior to the anticipated approval of the principle
environmental permits later this year.
Other recent developments at Mt. Todd include testing of the
large heap leach pad on site. This initial testing suggests that
the heap leach pad may still contain a significant amount of gold.
The Company is planning additional drilling, and metallurgical
testing is in progress to determine if the heap can be
re-commissioned or be treated as ball mill feed for the planned
processing facility. The initial testing program leads the Company
to believe that the heap leach pad should be considered as an asset
rather than a reclamation liability as presently considered.
Vista's President and CEO, Fred
Earnest, commented on these new developments: "Work on the
Mt. Todd feasibility study is being finalized and we expect to
announce the results before the end of the first quarter of 2012 or
shortly thereafter. Through our significant efforts over the past
seven years, we believe we have addressed all of the issues related
to those conditions that contributed to the failure of previous
operations. We believe that the metallurgical testing and process
engineering reports will provide the market with a clear
understanding, supported by testing results and analysis, of what
needs to be done to efficiently process the ore in the Mt. Todd
deposit. Additionally, we believe there is opportunity to further
optimize the Mt. Todd gold project and to enhance the project's
economics prior to the anticipated approval of the principle
environmental permits in the 4th quarter of this year. I am pleased
that we are now moving forward to build a project management team
for this project and look forward to the results of continued
refinements in the coming months."
About Vista Gold Corp.
Vista is focused on the development of the Mt. Todd gold project
in Northern Territory, Australia,
to achieve its goal of becoming a gold producer. Vista is advancing
exploration on its Guadalupe de los
Reyes gold-silver project in Mexico and has recently granted Invecture
Group, S.A. de C.V. a right to earn a 60% interest in the
Concordia gold project, in
Mexico. Vista's other holdings
include 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.
Cautionary Note to U.S. Investors Concerning Estimates of
Mineral Resources and Reserves
This press release and the reports referred to in this press
release use the terms "measured resources," "indicated resources,"
"measured & indicated resources" and "inferred resources." We
advise U.S. investors that while these terms are Canadian mining
terms as defined in accordance with NI 43-101 and the Canadian
Institute of Mining, Metallurgy and Petroleum ("CIM") - CIM
Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (the "CIM Standards"), such
definitions differ from the definitions in 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. "Inferred resources"
have a great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. 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 Guide 7 reserves.
This press release and the reports referred to in this press
release use the terms "proven and probable reserves" and "mineral
reserves." We advise U.S. investors that while these terms are
Canadian mining terms as defined in accordance with NI 43-101 and
the CIM Standards, such definitions differ from the definitions in
SEC Industry Guide 7. 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. U.S. investors are cautioned not to
assume that any part or all of mineral deposits in this category
will ever be converted into SEC Industry Guide 7 reserves.
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 estimates of mineral reserves and resources, the timing and
completion of a feasibility study at the Mt. Todd gold project, the
conversion of mineral resources to mineral reserves, estimates and
location of inferred resources at the Mt. Todd gold project, the
potential use of core drill rigs and the planned drilling program
at the Mt. Todd gold project, opportunities to expand measured and
indicated resource estimates, potential growth of proven and
probable reserves, life of mine, processing rate of facilities,
increases in annual production, efficiency of mining equipment
capital, increase in project size and the resulting impact on
project economics, presence of gold in heap leach pad,
characterization of heap leach pad as an asset rather than a
reclamation liability 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
reserve and resource estimates, estimates of results based on such
reserve and resource and reserve estimates; risks relating to
scheduling for a feasibility study; risks that mineral reserve and
resource estimate will not be confirmed by a new feasibility study;
risks that a new feasibility study will contain other risk factors
important to investors; risks relating to cost increases for
capital and operating costs including cost of power; risks relating
to delays at the Mt. Todd gold project; risks related to delays in
the timing and completion of the Mt. Todd drill program; 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; 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 14, 2011, and Quarterly Report on Form
10-Q, as filed November 9, 2011 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.
For further information, please contact Connie Martinez at (720) 981-1185.
SOURCE Vista Gold Corp.