DENVER, May 7, 2013 /CNW/ - 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.