DENVER, Feb. 26, 2014 /CNW/
- 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.