Vista Gold Corp. Announces Third Quarter 2012 Financial Results and
Provides Update on Recent Activities including an Updated Mineral
Resource Estimate for the Guadalupe de los Reyes Gold Project
DENVER, Nov. 5, 2012 /PRNewswire/ --Vista Gold Corp. (the
"Company," "we" or "our") (NYSE MKT and TSX: VGZ) today announced
its financial results and highlights for the third quarter ended
September 30, 2012. Management's
quarterly conference call to discuss these results is scheduled for
2:00 p.m. MST on November 5, 2012. The Company's full financial
results, Management's Discussion and Analysis together with other
important disclosures can be found in the Company's Quarterly
Report on Form 10-Q, filed with the U.S. Securities and Exchange
Commission and the Canadian securities regulatory authorities.
Third Quarter 2012 Highlights:
- Announced plans to evaluate a two-phased development strategy
for the Mt. Todd gold project based on the completion of a
comprehensive analysis focused on enhancing project economics while
preserving the ability to develop the entire Mt. Todd
resource;
- Initiated a preliminary feasibility study ("PFS") of Mt. Todd
gold project, with results expected early Q1 2013, to evaluate the
two-phased development strategy and to accelerate the environmental
permitting process;
- Announced an updated resource estimate for the Mt. Todd gold
project (see our September 4, 2012
press release and technical report filed October 5, 2012) and continued to announce
positive drill results from the Company's ongoing resource
conversion drilling program;
- Began treating water in the Batman pit for discharge during the
upcoming wet season at the site; and
- Continued to make good progress at the Las Cardones (formerly
named Concordia) gold project in
Baja California Sur where our
partner, Invecture Group, filed permit applications with Mexican
authorities.
Frederick H. Earnest, President
and Chief Executive Officer, commented, "During the third quarter,
we continued to advance our world-class Mt. Todd gold project by
announcing the results of a new resource estimate that now ranks
Mt. Todd as the largest undeveloped gold resource in
Australia. We further advanced the project by deciding to
evaluate a phased development approach that we expect to improve
project economics. This quarter we expect to complete the
ongoing resource conversion drilling program and, early next year,
we plan to complete a PFS on the Mt. Todd project.
Although we are principally focused on advancing Mt. Todd, we
continue to make progress at our two Mexican properties as
well. At Guadalupe de los Reyes, we completed our drilling
program and announced an updated resource estimate, which is
discussed further below. Lastly, at Las Cardones, our Mexican
partner, Invecture Group, has made good progress by submitting
permit applications to the Mexican government. We continue to
be pleased by the progress Invecture has been able to make and are
hopeful they will continue to have success permitting the Las
Cardones project."
Summary of Third Quarter 2012 Financial Results
The Company reported a net income of $12.3 million or $0.16 per share for the three months ended
September 30, 2012. This
includes an unrealized $29.1 million
mark-to-market gain on our investment in Midas Gold Corp.
("Midas"), partly offset by a $9.9
million increase in deferred tax liability substantially
related to this gain. During the three month period ended
September 30, 2011, we reported net
income of $10.7 million, or
$0.15 per share. The 2011 results
included an unrealized $27.8 million
mark-to-market gain on our investment in Midas, which was also
partly offset by a $10.0 million
increase in deferred tax liability substantially related to this
gain.
Cash and cash equivalents at September
30, 2012 totaled approximately $14.9
million, compared to $7.5
million at June 30, 2012.
During the quarter, the Company closed a private placement equity
offering which provided $14.2 million
net proceeds to the Company. During the quarter, $5.8 million was used for drilling, permitting,
water treatment, technical evaluations and engineering studies at
our Mt. Todd gold project and for advancing the preliminary
economic assessment at our Guadalupe de los Reyes gold/silver
project; and $1.1 million was used
for general and administrative expenses. The Company has no
debt.
To review the Company's Quarterly Report on Form 10-Q for the
three-month and nine-month periods ended September 30, 2012, including the related
Management's Discussion and Analysis, visit any of the following
websites: www.sedar.com, www.sec.gov or www.vistagold.com.
Updated Resource Estimate for the Guadalupe de los Reyes
Project
The Company also announced an updated resource estimate for its
Guadalupe de los Reyes project in Sinaloa, Mexico. This resource estimate
includes 48 core drill holes (7,215 meters) drilled since November
2011.
The new resource estimate for the Guadalupe de los Reyes
Project, as of November 2, 2012, is
presented in the table below. The mineral resource estimate
is reported at a cutoff grade of 0.50 grams of gold per tonne, the
same cut-off grade as the Company's previous estimate on the
project.
November 2012 Guadalupe de los Reyes Resource
Estimate
|
Resource Classification
|
Metric
Tonnes
(x
1000)
|
Gold
Grade
(grams
Au/t)
|
Silver
Grade
(grams
Ag/t)
|
Contained
Gold Ounces
|
Contained
Silver
Ounces
|
Indicated
|
6,842,238
|
1.73
|
28.71
|
380,323
|
6,315,407
|
Inferred
|
3,246,320
|
1.49
|
34.87
|
155,209
|
3,639,163
|
The Guadalupe de los Reyes resource estimate is contained
entirely within a lower-grade stockwork located close to the
surface. This resource estimate represents a decrease of
103,152 contained gold ounces in the Indicated category and a
decrease of 161,707 contained gold ounces in the Inferred category
relative to the previous estimate. Core drilling was selected
in order to gain more detailed information rather than reverse
circulation drilling that was used historically, and as a result
the mineralization at the Guadalupe de los Reyes project has been
redefined as being confined to more discrete but higher-grade
mineralized zones. Importantly, our drilling has also
intersected several high-grade veins at depth that provide exciting
exploration opportunities and underground potential. The
Company is currently evaluating whether a Preliminary Economic
Assessment (PEA) is appropriate at this time or whether additional
drilling should be conducted prior to the completion of a PEA.
Notes on Guadalupe de los Reyes Resource Estimate
This updated resource estimate was completed on November 2, 2012 by TetraTech MM, Inc. of
Golden, Colorado, pursuant to
Canadian National Instrument 43-101 Standards of Disclosure for
Mineral Projects ("NI 43-101"). This updated resource
estimate was completed by or under the supervision of Dr.
Rex Bryan, SME Registered Member, an
independent Qualified Person (as defined in NI 43-101), utilizing
standard industry software and resource estimation
methodology. Dr. Bryan has reviewed and approved the
technical and scientific information contained in this press
release. Previous technical reports contain extensive
geologic and technical information related to the deposit for which
the estimate is prepared. The last technical report was filed
on SEDAR on December 10, 2009, and is
entitled "Technical Report for the Guadalupe de los Reyes
Gold-Silver Project, Sinaloa,
Mexico – Amended and Restated" and was issued on
December 8, 2009. This updated
resource estimate incorporates the results from 48 drill holes (all
core holes) totaling 7,215 meters drilled by Vista in 2011 and 2012
with sample preparation and assaying completed by ALS Chemex in
Hermosillo, Mexico and
Vancouver, Canada. These results
are in addition to the results of drilling completed by Northern
Crown Mines, which were used in the previous updates of the
Guadalupe de los Reyes resource estimate. The press releases
and technical reports are available on Vista's website
(www.vistagold.com) and on SEDAR. We expect to file on SEDAR
a technical report for the updated mineral resource estimate within
45 days of this press release.
Management Conference Call
A conference call with management to review our financial
results for the fiscal quarter ended September 30, 2012 and to discuss corporate and
project activities is scheduled for Monday,
November 5 at 2:00 p.m.
MST.
Toll-free in North America: 1-866-443-4188
International: 416-849-6196
This call will also be web-cast and can be accessed at the
following web location
http://www.snwebcastcenter.com/custom_events/vistagold-20121105/site/
This call will be archived and available at www.vistagold.com
after November 5, 2012. Audio
replay will be available for 21 days by calling toll-free in North
America: 1-866-245-6755, passcode 934594.
If you are unable to access the audio or phone-in on the day of
the conference call, please email questions to Connie Martinez, Manager – Investor Relations
(email: connie@vistagold.com), and we will try to address these
questions prior to or during the conference call.
About Vista Gold Corp.
The Company is focused on the development of the Mt. Todd gold
project in Northern Territory, Australia, to achieve its goal of becoming a
gold producer. The Company 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 Las Cardones gold
project in Mexico. The Company'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.
For further information, please contact Connie Martinez at (720) 981-1185.
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 we expect or anticipate
will or may occur in the future, including such things as, timing,
completion and results of a PFS on the Mt. Todd gold project,
evaluation of the two phased development strategy at Mt. Todd
(including that it may result in improved project economics),
acceleration of the permitting process at the Mt. Todd gold
project, the Mt. Todd gold project being a world-class project with
the largest known undeveloped gold resource in Australia, timing and completion of the
resource conversion drilling program at the Mt. Todd gold project,
the timing and completion of a preliminary economic assessment on
the Guadalupe de los Reyes gold/silverproject, and success of
permitting at Las Cardones 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 statements and forward-looking information
contained in this press release include the following: our approved
business plans, exploration and assay results, mineral resource and
reserve estimates and results of preliminary economic assessments,
pre-feasibility studies and feasibility studies on our projects, if
any. 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 the Company 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 and reserve
estimates, estimates of results based on such resource and reserve
estimates; risks relating to completing updated resource and
reserve estimates; risks relating to cost increases for capital and
operating costs; risks relating to delays in the completion of
technical studies on our projects, 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 our 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 the Company's
latest Annual Report on Form 10-K as filed on March 14, 2012 and the Company's Amendment 1 to
its Annual Report filed on April 5,
2012 and other documents filed with the U.S. Securities and
Exchange Commission and Canadian securities regulatory
authorities. Although we have 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, we assume 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 National Instrument 43-101 Standards of Disclosure
for Mineral Projects ("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. This
press release uses the term "mineral resource." We advise
U.S. investors that while the term is recognized by Canadian
regulations, the term is not a defined term under the United States
Securities and Exchange Commission's (the "SEC") Industry Guide 7
and is normally not permitted to be used in reports and
registration statements filed with the SEC. Mineral 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 these mineral resources will
ever be upgraded to a higher category. 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. 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 all necessary permits and government approvals 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 these categories will ever be converted into
SEC Industry Guide 7 reserves.
SOURCE Vista Gold Corp.