Vista Gold Corp. Revises the Scope of the Mt. Todd Feasibility Study to Incorporate Increased Plant Throughput as Infill Drill
04 Juni 2012 - 7:33PM
PR Newswire (Canada)
DENVER, June 5, 2012 /CNW/ - Vista Gold Corp. ("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:
_________________________________________________________________ |
|Assay Interval |Thickness|Approx. True| | |Hole ID | | |Thickness
|Gold Grade | | |(From-To) |(meters) | |(gram/tonne)| | | |
|(meters) | |
|_________|___________________|_________|____________|____________|
|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 # 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. Vista Gold Corp.
CONTACT: http://www.vistagold.com
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