DENVER, May 7, 2013 /PRNewswire/ -- Vista Gold
Corp. (TSX & NYSE MKT: VGZ) ("Vista" or the "Company")
today announced its unaudited financial results and highlights for
the first quarter ended March 31,
2013. Management's quarterly conference call to discuss these
results is scheduled for 2:30pm MDT
on May 8, 2013. 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.
First Quarter 2013 Highlights:
- Released a positive Preliminary Economic Assessment on the
Guadalupe de los Reyes gold/silver project indicating an after-tax
Net Present Value of $57.3 million
using an 8% discount rate and gold and silver prices of
$1,480 and $28 per ounce, respectively;
- Completed an updated Mt. Todd gold project resource estimate
containing 7.4 million ounces of estimated Measured and Indicated
gold resources (279.6 million tonnes at 0.823 grams per
tonne);
- Received important water discharge permits at the Mt. Todd gold
project following positive results from the water treatment
program;
- Received Major Project Status from the Northern Territory
Government, prospectively providing the Mt. Todd gold project an
important high-level government platform to reach decisions
regarding matters of importance to the project in an efficient and
timely matter;
- Submitted the Draft Environmental Impact Statement ("EIS") to
the Northern Territory government for preliminary review; and
- Completed a non-dilutive Canadian $10
million bridge loan facility that enables Vista to continue
its advancement of the Mt. Todd gold project while allowing time
for the Invecture Group to earn-in on the Los Cardones gold project
in Baja California Sur, Mexico
($20 million) and for A.M. King
Industries to sell our Colomac mill equipment.
Frederick H. Earnest, President
and Chief Executive Officer, commented, "Vista made excellent
progress on a number of fronts during the first quarter of the
year. The successful conclusion of our 2012 drill program
resulted in an updated resource estimate that makes the Mt. Todd
gold project the largest gold development project in
Australia. We have been working very hard with our technical
consultants to complete the Preliminary Feasibility Study ("PFS")
for Mt. Todd which we expect to release by the end of May. We
anticipate that the PFS will evaluate two development scenarios
including a larger and smaller case. We believe that releasing two
development scenarios will illustrate the flexibility and quality
of the Mt. Todd gold project and identify options to develop the
project most appropriate for the market conditions at the time
Vista makes a development decision.
Continuing, Mr. Earnest added, "We have been very successful in
treating the acidic water pumped in the open pit at the Mt. Todd
gold project. As a result of the pH neutralization and
successful removal of nearly all of the metals, we expect to be
able to discharge most of the treated water during the 2013-2014
wet season, pursuant to the project's current water discharge
permit. In April, Mt. Todd was awarded Major Project
Status. Major Project Status is a special designation that
the Northern Territory Government awards to projects that have the
potential to provide significant economic opportunities for the
Northern Territory and its citizens. During the rest of 2013,
we will be working with the office of the Chief Minister to further
de-risk the Mt. Todd gold project by reaching mutually acceptable
agreements on key fiscal, environmental and energy
initiatives. Lastly, we submitted our Draft EIS to the
Northern Territory Environmental Protection Agency for a
preliminary review and continue to anticipate timely permitting of
the Mt. Todd gold project."
Summary of First Quarter 2013 Results
Vista reported a net loss of $27.4
million or $0.34 per share for
the three months ended March 31,
2013. This includes an unrealized $28.8 million mark-to-mark loss on our investment
in Midas Gold Corp. ("Midas"), partially offset by an $11.0 million increase deferred tax benefit
substantially related to this loss. During the three months
ended March 31, 2012, we reported a
net loss of $11.2 million or
$0.16 per share.
Project expenditures at the Mt. Todd gold project were
$8.8 million, which was primarily
attributable to water treatment, PFS evaluation and site general
and administrative expenses.
During March, we closed on a Canadian $10
million one year loan facility, which may be extended by an
additional year. Our working capital at March 31, 2013 totaled approximately $31.7 million, including cash of approximately
$16.3 million.
To review the Company's Quarterly Report on Form 10-Q for the
three months ended March 31, 2013 or
Annual Report on Form 10-K for the year ended December 31, 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.
Management Conference Call
A conference call with management to review our financial
results for the three months ended March 31,
2013 and to discuss corporate and project activities is
scheduled for Wednesday, May 8, 2013
at 2:30pm MDT.
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/webcast/vistagold/q1-2013/site/
This call will be archived and available at www.vistagold.com
after May 8, 2013. Audio replay
will be available for 21 days by calling toll-free in North America: 1-866-245-6755, passcode
596512.
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.
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 has
completed a preliminary economic assessment 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 Los Cardones gold
project, in Mexico. Vista's other
holdings include the Awak Mas gold project in Indonesia, subject to One Asia Resources
Ltd.'s right to earn an 80% interest, 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.
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, the prospect of the Major Project Status of the Mt. Todd gold
project resulting in decision of the Northern Territory Government
being reached in a timely and efficient manner, timing and results
of the PFS for the Mt. Todd gold project, the PFS containing two
development scenarios, timing for draining the pit at the Mt. Todd
gold project, timing for permitting the Mt. Todd gold project, the
project economics and exploration potential at the Guadalupe de los
Reyes gold/silver project, the prospective earn-in by the Invecture
Group, the future sale of the Colomac mill equipment 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: timing
and completion of the preliminary feasibility and feasibility
studies, timing and the ability to obtain the necessary permits,
keeping expenditures at a minimum while taking advantage of the
estimated mineral resources at the Mt. Todd gold project, theamount
of expenditures required to increase the plant capacity, updated
mineral resource estimate on the Mt. Todd gold project, timing and
schedule of consultants' work, likely market for the Colomac mill
equipment and the likelihood of the Invecture Group meeting the
earn-in 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 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 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 Annual
Report Form 10-K as filed on March 14,
2013 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.
Cautionary Note to U.S. Investors Concerning Estimates of
Mineral Resources
The United States Securities and Exchange Commission ("SEC")
limits disclosure for U.S. reporting purposes to mineral deposits
that a company can economically and legally extract or produce.
This press release uses the terms "Measured resources," "Indicated
resources," and "Measured & Indicated resources." We
advise U.S. investors that while these terms are Canadian mining
terms as defined in accordance with NI 43-101, such terms are not
recognized under SEC Industry Guide 7 and are normally not
permitted to be used in reports and registration statements filed
with the SEC. Mineral resources in these categories have a great
amount of uncertainty as to their economic and legal feasibility.
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.
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.