Vista Gold Corp. Signs Option to Purchase Awak Mas Gold Deposit, Indonesia
03 November 2004 - 12:29AM
PR Newswire (US)
Vista Gold Corp. Signs Option to Purchase Awak Mas Gold Deposit,
Indonesia DENVER, Nov. 2 /PRNewswire-FirstCall/ -- Vista Gold Corp.
(TSX & Amex: VGZ) is pleased to announce that it has signed an
option agreement to acquire the Awak Mas gold deposit located in
Sulawesi, Indonesia, for a purchase price of U.S. $1,500,000. Under
the terms of the agreement, the Corporation will have up to six
months to conduct due diligence while paying the owners U.S.
$15,000 per month. The monthly option payments, as well as costs up
to U.S. $150,000 expended to correct any deficiencies in asset
standing, will be credited towards the purchase price. A resource
analysis for the Awak Mas project was prepared on October 28, 2004,
by RSG Global Pty Ltd of West Perth, Australia, an independent
consulting firm, in accordance with Canadian National Instrument
43-101 guidelines under the supervision of Brett Gossage, a
Qualified Person. The resource analysis report includes the results
of 85,030 assay intervals from 814 core and reverse circulation
drill holes done by Battle Mountain Gold, Lone Star and Masmindo
from 1991 through 1997 with assaying by Inchcape Testing Services.
A final feasibility study was completed by independent consultants
in 1997 for Lone Star supporting a mining scenario of 3 million
metric tons per year of ore. Independent valuations of the project
were completed in 2000 and 2003 as well. Over AUD $46 million has
been spent on the project. Based on the resource analysis report,
the gold resources, reported at a cutoff grade of 0.5 grams gold
per ton are: Short Tons Grade Contained Gold (000s) (ounces Ounces
per ton) Measured and indicated resources 1) 52,580 0.032 1,656,000
Inferred resources 2) 8,250 0.032 259,000 1) Cautionary Note to
U.S. Investors concerning estimates of Measured and Indicated
Resources: This table uses the term "measured and indicated
resources". We advise U.S. investors that while this term is
recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission does not recognize it. U.S.
investors are cautioned not to assume that any part or all of
mineral deposits in this category will ever be converted into
reserves. 2) Cautionary Note to U.S. Investors concerning estimates
of Inferred Resources: This table uses the term "inferred
resources". We advise U.S. investors that while this term is
recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission does not recognize it. "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 mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of a feasibility study or other
economic study. U.S. investors are cautioned not to assume that any
part or all of an inferred resource exists or is economically or
legally minable. Vista President and CEO Mike Richings stated "The
potential to acquire high quality measured and indicated resources
of 1.7 million gold ounces plus an inferred resource of 0.3 million
gold ounces at a cost of U.S. $1.5 million is very attractive to
Vista. We believe the recent election results in Indonesia bode
well for the country and foreign investments in resource projects
in Indonesia. And, with rising gold prices, we expect Awak Mas to
be an increasingly valuable addition to Vista's asset base." Vista
Gold Corp., based in Littleton, Colorado, evaluates and acquires
gold projects with defined gold resources. Additional exploration
and technical studies are undertaken to maximize the value of the
projects for eventual development. The Corporation's holdings
include the Maverick Springs, Mountain View, Hasbrouck, Three
Hills, Wildcat projects and Hycroft mine, all in Nevada, the Long
Valley project in California, the Yellow Pine project in Idaho, the
Paredones Amarillos and Guadalupe de los Reyes projects in Mexico,
and the Amayapampa project in Bolivia. The statements that are not
historical facts are forward-looking statements involving known and
unknown risks and uncertainties that could cause actual results to
vary materially from targeted results. Such risks and uncertainties
include those described from time to time in the Corporation's
periodic reports, including the annual report on Form 10-K filed
with the U.S. Securities and Exchange Commission. The Corporation
assumes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise. For further information, please contact Greg Marlier
at (720) 981-1185, or visit the Vista Gold Corp. website at
http://www.vistagold.com/ DATASOURCE: Vista Gold Corp. CONTACT:
Greg Marlier of Vista Gold Corp., +1-720-981-1185 Web site:
http://www.vistagold.com/
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