DENVER, Feb. 26, 2014 /PRNewswire/ -- Vista Gold Corp.
("Vista" or the "Company") (NYSE MKT and TSX: VGZ) announced today
that its agreement with the Northern Territory of Australia (the "Agreement") for the Mt. Todd
gold project has been extended for an additional three-year period
to December 2018. Additionally, the Company provided an
update on the EIS permitting process and announced an updated
resource estimate for the Quigleys deposit, a satellite deposit to
the Mt. Todd gold project.
Extension of Mt. Todd Agreement by the Northern Territory of
Australia
On February 19, 2014 the Northern
Territory of Australia extended
its agreement with Vista for the Mt. Todd gold project. The
Agreement will now extend through the end of December, 2018.
Vista's President and CEO, Fred
Earnest, commented, "The advanced stage of our technical
studies together with this three-year extension give us sufficient
time to make a development decision at the Mt. Todd gold
project, provided gold prices improve. The extension of
the Agreement is indicative of Vista's and the Northern Territory
Government's desire to see the Mt. Todd gold project successfully
developed."
Mt. Todd Environmental Impact Study (EIS) Update
The Mt. Todd EIS is expected to be approved in the 3rd quarter
of 2014.
As previously announced, the EIS was formally presented to the
Environmental Protection Authority of the Northern Territory
("EPA") in June 2013. Review by the EPA and the prescribed
public consultation process resulted in a series of comments to
which the Company provided comprehensive responses in late October
2013. In late November 2013,
Vista received a request for additional information on several
topics. Draft responses were prepared and submitted in
January 2014. Through regular communication with the EPA, the
Company has been advised that it has adequately responded to all
but two topics: (1) the long-term stability of the waste rock dump
and its ability to shed water in its reclaimed state; and (2) the
potential effect that the expanded Batman pit may have on the
Gouldian Finch habitat and nesting areas. Fred Earnest,
commented, "We expect to be able to respond to the questions raised
about the waste rock dump by the end of this month, and we have
reached consensus with the EPA regarding a field study to be
completed in April and May with respect to the Gouldian Finch
questions. We expect the results of this study to be
submitted to the EPA in June of this year. We are optimistic that
this will clear the path for final approval of the EIS for the Mt.
Todd gold project in the third quarter of 2014."
Quigleys Deposit Updated Resource Estimate
In addition to the extensively studied Batman deposit, Vista's
mining licenses at the Mt. Todd project are host to the Quigleys
deposit, a satellite deposit that has the potential to be an
additional source of ore for the Mt. Todd gold project. To
date, Vista has not undertaken the metallurgical testing and mine
planning to be able to include the Quigleys deposit in its economic
evaluations of the Mt. Todd gold project, but recent geologic work
has provided new information.
During the 4th quarter of 2013, Vista undertook a
re-evaluation of the Quigleys deposit's geology, mineralizing
controls, and estimated resources utilizing the knowledge gained
over the past seven years from our analysis of the Batman
deposit. This work was completed by Tetra Tech of
Golden, Colorado, under the
supervision of Dr. Rex Bryan,
Qualified Person. This resource update was based on a
comprehensive re-logging of available reverse circulation (RC)
chips and drill core (core) which was led by Mr. Peter Harris, Manager of Geology at Mt. Todd, of
Vista Gold Australia. The initial assay domain assignments
were provided to Tetra Tech from the Vista Gold Australia geologic
staff. Upon entry into the modeling software and review,
several changes to the initial shapes were suggested, and after
consultation with the Vista Gold Australia geologic staff, were
made; however, the final overall shapes are very similar to those
originally proposed by the Vista Gold Australia geologic staff.
This update differs from the previous estimation for the
Quigleys deposit in the following ways, all which contribute to an
increase in estimated resource grade:
- Three additional diamond core holes that extended the resource
down-dip and have intercepts considerably higher than the expected
cutoff grade,
- Mineral domains have been modeled as thinner and more
discrete,
- Domains have been modeled as sharp boundaries. Waste on the
edges of the domains has been removed, through hole by hole review
and 'snapping' to drill hole assay intercepts,
- The previous resource was modeled as one domain through the
main body of the anticline where this update has modeled the
anticline as two separate geologic domains and removed the internal
waste,
- The previous model used all composites in a single domain model
to vote for blocks within the single domain given they were within
the search ellipsoid, where this model has several domains that are
only permitted to use composites to inform grade within their
corresponding domain,
- This update utilizes a smaller block size and sub-blocks to
best mimic the complex shape of the domain model.
Based on the above described changes and refinements, the
estimated mineral resources of the Quigleys deposit is as shown in
Table 1.
|
Table 1: Estimated
Resources at 0.4 g Au/t Cutoff
|
Resource
Class
|
Cutoff
(g
Au/t)
|
Tonnage
(x1000)
|
Grade
(g
Au/t)
|
Ounces Au
(x1000)
|
Measured
|
0.4
|
623
|
1.14
|
23
|
Indicated
|
0.4
|
7,834
|
1.10
|
276
|
Measured +
Indicated
|
0.4
|
8,457
|
1.10
|
299
|
|
|
|
|
|
Inferred
|
0.4
|
11,177
|
1.13
|
407
|
* See Cautionary Note to U.S. Investors Regarding Estimates of
Mineral Resources below.
Vista does not deem the estimated quantity of resources to be
materially different than previously reported quantities.
What has changed is our understanding of the geology and
mineralizing hosts which has resulted in a "more realistic"
understanding of the deposit and will therefore be used as a guide
for future exploration programs. Fred
Earnest added, "The Quigleys deposit represents an
opportunity to optimize the economics of the Mt. Todd gold project
by providing a source of higher grade ore in the early years of the
life of the project. While we have yet to complete the
appropriate metallurgical testing to confirm compatibility with the
flowsheet selected for the Batman deposit, we are encouraged by the
work recently completed to better define the geologic
resource."
The scientific and technical information disclosed in this press
release has been reviewed and approved by Mr. John Rozelle, a Senior Vice President of Vista
and a qualified person (as defined by Canadian National Instrument
43-101).
For additional information on the Mt. Todd gold project, see our
technical report entitled "NI 43-101 Technical Report – Mt. Todd
Gold Project, 50,000 tpd Preliminary Feasibility Study, Northern
Territory, Australia" dated with
an effective date of May 29, 2013 and
an issue date of June 28, 2013.
About Vista Gold Corp.
Vista's principal assets include its flagship Mt. Todd gold
project in Northern Territory, Australia, and a 12.4% holding in Midas Gold
Corp. In addition to non-core projects in Mexico and California, Vista holds royalty interests in
projects in Bolivia and
Indonesia. 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, we have sufficient time to make a development decision at the
Mt. Todd gold project, the timing for anticipated EIS approval, our
ability and the anticipated timing to respond to questions raised
by the EPA, anticipated timing to complete the Gouldian Finch
study, estimated mineral resources, our understanding of the
Quigleys deposit, use of updated information, the Quigleys deposit
is a source of higher grade ore that will be used in the early
years of the 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: mineral reserve estimates, terms and
conditions of our agreements with contractors and our approved
business plans, management's assessment of potential transactions
and strategic options, and the Company's assessment of the
questions raised by the NT EPA and an improvement in the gold
price. When used in this press release, the words
"optimistic," "potential," "indicate," "expect," "intend," "plans,"
"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, ability to work with the NT EPA to
settle any questions raised, risks that additional studies may need
to be conducted or that studies will not be completed within
expected timelines, uncertainty of resource and reserve estimates,
estimates of results based on such resource and reserve 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. 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. Mineral resources described in this
press release 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. The term
"contained gold ounces" used in this press release is not permitted
under the rules of the SEC. "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 resource will ever be upgraded
to a higher category. 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.