DENVER, June 5, 2012 /PRNewswire/ -- Vista Gold Corp.
(TSX & NYSE MKT: VGZ) ("Vista" or the "Company")
today announced that it has revised the scope of the Feasibility
Study on its Mt. Todd gold project ("FS") to incorporate the
following areas of optimization:
- a larger processing facility with daily throughput expected to
be in the range of 40-45,000 tonnes of ore per day;
- a redesigned open pit and mine production schedule
incorporating a new resource estimate which will include the
results of the drilling program currently in progress; and
- design of facilities to recover gold from the existing heap
leach pads, commencing in the construction period.
The Company is now targeting the release of the FS in late 2012
or early 2013, which will evaluate a larger project with the hope
that it will result in economies of scale, a forward shift in the
production of ounces due to the optimization of the mine schedule
and the increased throughput rate of the processing facility, and a
mine life that results in the more efficient use of project
capital.
Fred Earnest, Vista's President
and CEO, commented, "Our decision to change the scope of the FS at
this time has been taken in order to incorporate new information
from the ongoing drilling program, the subsequent results of mining
and processing engineering to optimize the mine production and
plant throughput rates, as well as the heap leach testing
programs. The FS we started in April of last year was based
on a smaller measured and indicated mineral resource estimate and a
30,000 tonne per day processing facility. Given the increase
in the resource estimate announced last September (please refer to
our press release dated September 6,
2011) and our additional exploration results to date, we
believe that a larger process facility will be justified.
We are very pleased with the continued results of the resource
conversion drilling program. We have now completed a
substantial majority of the approximately 14,000 planned meters and
expect to complete an updated mineral resource estimate for Mt.
Todd in the latter part of the third quarter of this year. The
results continue to show that the mineralization in the Batman
deposit is open to expansion along strike to the north and south,
at depth and to the east. Based on the most recent assays and
the drill results previously announced, we expect that the new
resource estimate may result in the conversion of a significant
portion of the project's estimated inferred resources to estimated
measured and indicated resources. Furthermore, because of the
location of the mineralized intercepts relative to the previous pit
designs, we believe the new FS may result in a larger open
pit.
The metallurgical testing that has been completed on material
from the existing heap leach pad indicates that the evaluation of
the production of gold during the construction of the main process
facilities is warranted. Vista's work over the past several
years leads us to believe that we have addressed the technical
issues which contributed to the failure of previous operations at
the Mt. Todd gold project. The revised scope of the FS will
incorporate design changes to deal with these technical issues and
renewed leaching of the heap leach pad."
As Vista works to finalize the FS, the Company is also advancing
in parallel its permitting and project financing efforts.
Vista continues to discuss the Mt. Todd gold project with, and seek
the requisite project approvals on an expedited schedule from, the
appropriate agencies in the Northern Territory,
Australia. In addition, Vista is pleased to announce
that it has appointed Endeavour Financial Limited (Cayman) to
assist the Company with both the evaluation of potential debt
finance opportunities for the development of the Mt. Todd gold
project, as well as the appointment of a third party technical
consultant to review and confirm the studies completed on the Mt.
Todd gold project. This review is to be undertaken in
parallel with the FS to independently verify its findings to
potential third party financiers and investors.
Additional Drilling Results
Vista has now completed 16 holes totaling 11,835 meters.
The assay results of the first seven holes (approximately 48% of
total drilled to-date) were announced previously (please refer to
our press releases dated April 25,
2012 and March 12, 2012). The
following table summarizes the significant results from the
subsequent three holes, representing approximately 14% of total
drilled to-date:
Hole
ID
|
Assay
Interval
(From-To)
|
Thickness
(meters)
|
Approx.
True Thickness
(meters)
|
Gold
Grade
(gram/tonne)
|
VB12-004
|
92.0 –
133.0
|
41.0
|
33
|
0.70
|
|
133.5 –
145.3
|
11.8
|
10
|
0.52
|
|
203.0 –
221.0
|
18.0
|
15
|
0.66
|
VB12-005
|
455.9 –
482.1
|
26.2
|
22
|
0.82
|
|
500.9 –
511.0
|
10.1
|
8
|
1.11
|
|
516.0 –
540.9
|
24.9
|
21
|
0.40
|
|
546.0 –
651.1
|
105.1
|
87
|
1.35
|
Including
|
570.0 –
583.0
|
13.0
|
11
|
3.72
|
|
656.0 –
704.0
|
48.0
|
40
|
0.97
|
VB12-006
|
162.0 –
205.0
|
43.0
|
36
|
1.01
|
|
211.0 –
261.0
|
50.0
|
42
|
0.61
|
The orientation of these drill holes relative to the deposit is
shown in cross sections found on the Company's web site at
http://www.vistagold.com/mt_todd.php?subpage=dr_20120604. 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,
generally averaging 1 meter in length. Mean grades are
calculated at a 0.4 g/t Au cutoff with no upper cap applied.
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 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 Northern Territory Environmental
Laboratories (Intertek Group) in Darwin, Australia. Gold
grades are based on a 50 gram fire assay method.
Core logging and sample custody, preparation and assaying were
reviewed by Mr. Frank Fenne and Mr.
Fenne is of the view that they are sufficient. Mr.
Frank Fenne has verified and
approved the data and approved the scientific and technical
information disclosed in this press release.
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 granted Invecture
Group, S.A. de C.V. a right to earn a 62.5% 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.
This press release uses 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 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 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 timing, completion and
results of a feasibility study at the Mt. Todd gold project
(including the revised scope of the FS and the expected or hoped
results thereof), the timing, completion and results of an updated
mineral reserve and resource estimate at the Mt. Todd gold project
(including the conversion of inferred resources to measured and
indicated resources), the increase in the size of the open pit, the
potential to produce gold from the existing heap leach pad, the
goals and achievement of the goals of the drilling program and the
FS, the size and significance of the Mt. Todd gold project, the
justification of a larger process facility, the potential impact of
a larger process facility, Vista's ability to address technical
issues which contributed to the failure of prior operators and the
inclusion of Vista's solutions in the FS, the appointment of and
review by and conclusions of a third consultant to confirm prior
studies on the Mt. Todd gold project and other such matters are
forward-looking statements and forward-looking information.
The material factors and assumptions used to develop the
forward-looking information and the forward-looking information
contained in this press release include the following: results of
feasibility studies, mineral resource and reserve estimates,
exploration and assay results, terms and conditions of our
agreements with contractors and our approved business plan.
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 resource estimates, estimates
of results based on such resource estimates; risks relating to
completing metallurgical testing; risks relating to cost increases
for capital and operating costs; risks relating to delays in the
completion of anticipated drilling activities at the Mt. Todd
gold project, risks related to the timing and 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; as
well as those factors discussed under the headings "Note Regarding
Forward-Looking Statements" and "Risk Factors" in Vista's Amendment
No. 1 to its Annual Report on Form 10-K as filed on April 5, 2012 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.
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.