Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) is pleased to provide an update on the Company’s 100%
owned Mt Todd gold project (“Mt Todd” or the “Project”) located in
Northern Territory, Australia and outline strategic growth
opportunities.
Key Highlights
Vista continues to advance programs expected to
add value and de-risk Mt Todd. Recent and ongoing programs
include:
- A drill program to test Batman
North extensions, with the goal of adding higher-grade, near
surface mineral resources immediately adjacent to the planned
Batman pit
- Geotechnical drilling and
foundation investigations to shorten the time required to complete
a feasibility study and support future detailed engineering
- Ongoing internal evaluations to
assess the potential to increase recovered gold resources and
extend the life of the Project
- Internal evaluations on Project
economic sensitivity information
- Lowering water levels in the Batman
pit through successful water management program implementation
- Advancing the review process of the
Mine Management Plan (“MMP”) to final stages of approval
Frederick Earnest, President and CEO of Vista
commented, “With the steady improvement in the gold price, Vista
continues to pursue opportunities to add additional value to Mt
Todd, beyond the significant positive impact of the current gold
price, and further de-risk the Project. Our ongoing efforts focus
on securing approval of our last major permit, the MMP, improving
the Project execution timeline, and organic growth opportunities
immediately adjacent to the proposed Batman pit and at other
prioritized exploration targets.
The compilation of previously reported geologic
data and subsequent field investigations of that existing data have
identified what we believe is the up-plunge, northern extension of
the higher-grade Batman core zone as further discussed in our news
release dated June 2, 2020. Confirmation of the surface geology
work through drilling is expected to lead to additional efforts to
evaluate the continuity of mineralization along the structural
corridor northeast of the Batman deposit.
Sustained current gold prices demonstrate the
tremendous leverage that Mt Todd enjoys. Our mine plan is
conservatively based on a US$1,000 gold price. Given recent and
sustained higher gold prices, we are conducting an internal
evaluation to assess the potential impact of increasing the gold
price used for mine planning. We anticipate that a modest change to
that gold price may increase reserves and mine life. Mt Todd is
well advanced, de-risked and with the appropriate partner, ready to
transition from an exploration and development project to a
large-scale, low-cost gold producer.”
Drilling to Test Batman North Extensions
As mentioned above, the compilation and
evaluation of previously reported geological information identified
two areas of interest immediately adjacent to the currently
designed Batman pit. Surface mapping and sampling have been
completed and a drill program to test these higher-grade, near
surface targets is being initiated. Successful completion of this
program could form the basis for future changes to the mine design,
with the combined benefits of better grade and lower stripping.
Furthermore, this drilling marks our first efforts to confirm the
continuity of gold mineralization within the structural corridor
extending from the Batman deposit northeast ~5.4 Km to the Quigleys
deposit.
Geotechnical Drilling and Foundation
Investigations
One of the recommendations in the October
2019 preliminary feasibility study (the "2019 PFS") for Mt
Todd is to complete site-specific geotechnical investigations for
all of the foundations associated with heavy process plant
equipment. Drilling and test pit excavations have been completed.
Lab results from this work are being finalized and are expected to
decrease the time needed to complete a feasibility study when
deemed appropriate, reduce the initial capital cost estimates for
those foundations, and provide information for future detailed
engineering.
Internal Evaluations Related to Higher Gold
Prices
The 2019 PFS Batman open pit design and reserve
estimates are based on a US$1,000 gold price Learchs-Grosman (“LG”)
cone. With the recent sustained increase in gold prices, Vista is
evaluating the economic impact of changing the US$1,000 gold price
for the LG cone to US$1,100 or US$1,200, which has the potential to
increase the recovered resources and extend the life of the
Project.
Water Management Program
Our water management program implemented in 2014
has yielded significant results at the Project site. When
initiated, the total water inventory at site was approximately 16.6
gigalitres (“GL”) of water. The Batman pit contained approximately
11.5 GL of this total. Through August 2020, the total water
inventory was 5.52 GL with the Batman pit containing 2.20 GL of
this total. Complete dewatering of the Batman pit is now possible
prior to a potential start of construction.
Figure 1 – Batman Pit, November 2014 (11.5
GL) https://www.globenewswire.com/NewsRoom/AttachmentNg/47424fc1-77aa-4901-8a85-0e696a8aa895
Figure 2 – Batman Pit, September 2020 (2.2
GL) https://www.globenewswire.com/NewsRoom/AttachmentNg/a8a16ff3-5f46-4580-9a6d-2db177cf9770
Mine Management Plan
Vista continues to work with the Northern
Territory Division of Mines on the approval of the Mt Todd Mine
Management Plan, which is the equivalent of a mine operating permit
in North America. In March of this year, we were asked to provide
several independent assessments of our designs and
operating/closure plans. Those assessments have been favorably
completed and final corresponding documents have been submitted. We
are hopeful that in the coming months we will receive final
approval of the MMP. Once approved, Vista will hold all major
permits for the Project.
All dollar amounts stated herein are in United
States currency and are expressed as $ unless specified
otherwise.
About Vista Gold Corp.
The Company is a gold project developer. The
Company’s flagship asset is the Mt Todd gold project in Northern
Territory, Australia. Mt Todd is the largest undeveloped gold
project in Australia and if developed as presently designed, would
potentially be Australia’s 6th largest gold producer on an annual
basis.
For further information about Vista or the Mt
Todd Gold Project, please contact Pamela Solly, Vice President of
Investor Relations, at (720) 981-1185 or visit the Company’s
website at www.vistagold.com to access important information,
including the current Technical Report.
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 our
expectation that Vista’s ongoing efforts will secure approval of
the MMP, improve the Project execution timeline, and achieve
organic growth opportunities immediately adjacent to the proposed
Batman pit and at other prioritized exploration targets; our belief
that we have identified the up plunge, northern extension of the
higher-grade Batman core zone and our expectation that this will
lead to additional efforts to evaluate the continuity of
mineralization along the structural corridor northeast of the
Batman deposit; our anticipation that a modest change to gold price
may increase reserves and mine life; our belief that Mt Todd is
ready to transition to a large-scale, low-cost gold producer; the
possibility that successful completion of the drill program at the
Batman pit could form the basis for future changes to the mine
design, with the combined benefits of better grade and lower
stripping; our expectation that lab results from drilling and test
pit excavations will decrease the time needed to complete a
feasibility study, reduce the initial capital cost estimates for
those foundations, and provide information for future detailed
engineering; our expectation that if a determination to update the
gold price was made, the economic impact of changing the US$1,000
gold price for the LG cone to US$1,100 or US$1,200 has the
potential to increase the recovered resources and extend the life
of the Project; and our belief that Mt Todd is the largest
undeveloped gold project in Australia and if developed as presently
designed, would potentially be Australia’s 6th largest gold
producer on an annual basis 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 discussions and contractual arrangements with Prime Mining, our
reliance that Prime Mining will be able to raise funds to finance
its business plans; our approved business plans, exploration and
assay results, results of our test work for process area
improvements, mineral resource and reserve estimates and results of
preliminary economic assessments, prefeasibility studies and
feasibility studies on our projects, if any, our experience with
regulators, and positive changes to current economic conditions and
the price of gold. 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, uncertainty as to the Company’s future operating costs
and ability to raise capital; risks relating to cost increases for
capital and operating costs; 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;
uncertainty as to the results of bulk metallurgical test work; and
uncertainty as to completion of critical milestones for Mt Todd; 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 February 26, 2020 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.
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