Vista Gold Corp. Announces Mt. Todd Development Strategy and
Technical Report Schedule and Announces Upcoming Analyst Days
DENVER, Oct. 22, 2012 /PRNewswire/ -- Vista Gold
Corp. (TSX & NYSE MKT: VGZ) ("Vista" or the "Company") today
announced that it has completed a comprehensive analysis focused on
optimizing the development plans for the Mt. Todd gold project in
Northern Territory, Australia. After a thorough review, the
Company has selected a two-phased strategy to achieve its
development goals and economic objectives.
Stage 1 contemplates the construction of a 30,000 tonne per day
("tpd") project using a higher cut-off grade (0.5 g Au/tonne vs.
0.4 g Au/tonne used in all prior Vista analysis), with lower grade
material to be stockpiled.
Stage 2 would involve an expansion to 45,000 tpd after payback
of initial capital and contemplates a reduction in the cut-off
grade to 0.4 g Au/tonne and the processing of stockpiled material
from Stage 1.
This two-phased strategy enables the Company to minimize initial
capital costs and further increase the average grade of material to
the mill in the early years of the project to achieve the shortest
possible payback period. It also provides the opportunity to
achieve a 50% increase in project scale with modest additional
capital expenditures to allow the Company to take advantage of Mt.
Todd's large and growing resource base.
Additionally, the Company announced that it intends to complete
a preliminary feasibility study ("PFS") in the first quarter of
2013 that evaluates this development strategy. The Company
expects to complete a feasibility study ("FS") for the project in
the second quarter of next year.
Vista's President and CEO, Fred
Earnest, explained, "After a detailed review of development
options, we have selected a strategy that optimizes cash flow
during the initial capital payback period and also takes advantage
of economies of scale and Mt. Todd's large resource. This
review process and our continued resource development drilling
success confirms our belief that Mt. Todd is a world-class deposit
and capable of sustaining long-term, large-scale production.
Our decision to first complete a PFS allows us to better
communicate with the market and to more efficiently manage the
environmental permitting process by making reportable information
available at an earlier date."
The original Mt. Todd PFS announced in January 2011 contemplated a 30,000 tpd
project. As previously announced, the continued success from
the Company's ongoing resource conversion drilling program led the
Company to consider increasing the size of the process facilities
ranging from 40,000 – 50,000 tpd to balance the significant
increase in resources with an economically attractive
project. Analysis of the recently completed resource model
(results announced on September 4,
2012) has led the Company to conclude that a 0.5 g Au/t
cut-off grade combined with a smaller, scalable plant have the
potential to result in significantly better project economics.
The Company indicated that the same consultants engaged in the
evaluation of development options are already working on the PFS
and will immediately thereafter work on completing the FS.
The Company also announced that it will hold analyst days this
week in Toronto, Ontario
(October 23) and New York City (October 24). Parties
interested in attending should contact a Company
representative. Both events will be webcast. Links to
the presentation and webcasts are on the Company's website at
www.vistagold.com.
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 and the technical reports referenced in this
press release use the terms "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 are not defined 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. Disclosure of "contained ounces" in a resource
is permitted disclosure under Canadian regulations; however, 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. 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 feasibility or
pre-feasibility studies, except in rare cases. 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, goals
and results of the evaluation of the two-phased development
strategy, ability to keep initial capital expenditures at a minimum
while taking advantage of the estimated mineral resources at Mt.
Todd, the amount of expenditures required to increase the plant
capacity, timing and completion of the PFS, FS and updated mineral
resource estimate on the Mt. Todd gold project, timing and schedule
of consultants' work 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
Company's website at www.vistagold.com.
SOURCE Vista Gold Corp.