Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today announced its unaudited financial results for the
quarter ended June 30, 2021, which were highlighted by the approval
of the Mining Management Plan, the last major permit required for
the development of Vista’s 100% owned Mt Todd gold project (“Mt
Todd” or the “Project”), and reported cash and cash equivalents of
$6.3 million.
Drilling Photo
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Frederick H. Earnest, President and Chief
Executive Officer of Vista, commented, “During the second quarter
we achieved a number of significant milestones for Vista and our
shareholders. Most important was the approval of the Mt Todd Mining
Management Plan. Vista now holds all major operating and
environmental permits for the development of Mt Todd. Our ongoing
exploration drilling program to identify areas where infill
drilling would have the greatest potential to add resource ounces
close to our Batman deposit continues to produce positive results.
We received the final $1.0 million payment from Prime Mining Corp.
and the approval of other permits related to the Mt Todd
project.”
“Recently, we announced the start of engineering
to complete a definitive feasibility study for Mt Todd in the first
quarter of 2022. This study, which will include more detailed
engineering and design, cost inputs, and economic analysis, is
expected to increase the reserves and mine life of the project. The
results of the study, together with the results of our ongoing
district-scale exploration program, are expected to further
demonstrate the significant upside potential of the Project and
strengthen our position with potential development partners.”
Second Quarter Highlights and Important
Recent Developments
-
Received approval of the Mt Todd Mining Management Plan;
-
Commenced a definitive feasibility study for Mt Todd;
-
Received final $1.0 million payment from Prime Mining Corp. for the
Guadalupe de los Reyes project;
-
Ended 2Q 2021 with cash and cash equivalents of $6.3 million;
-
Completed a $13.5 million bought deal public offering in July
2021;
-
Reported positive results from ongoing exploration activities;
-
Expanded the current exploration drill program to include an
additional 3,000 meters of drilling;
-
Received Aboriginal Areas Protection Authority Certificate;
and
-
Received approval of the Mt Todd Surface Water Extraction
License.
Summary of Q2 2021 Financial
Results
On June 30, 2021, cash and cash equivalents
totaled $6.3 million. We benefited during the quarter from receipt
of the final $1.0 million related to Guadalupe de los Reyes and
continued control over our base expenditures. This allowed us to
commit additional funds to our ongoing drilling program.
Vista reported a net loss of $0.8 million or
$0.01 per share for the three months ended June 30, 2021, compared
to a gain of $1.9 million or $0.01 per share reported for the three
months ended June 30, 2020. The loss for the current quarter was in
line with management’s expectations.
All dollar amounts in this press release are in
U.S. dollars.
Definitive Feasibility
Study
Management recently commenced a definitive
feasibility study for Mt Todd and expects to complete the report
during Q1 2022. Most of the engineering work for Mt Todd has
previously been completed to feasibility study standards and Vista
is now completing the remaining feasibility engineering in the
process plant (piping, electrical, and instrumentation), updating
project designs to be consistent with the recently approved Mining
Management Plan, and completing an economic evaluation using a gold
price more reflective of the current market price, which is
expected to increase gold reserves and extend the mine life. We are
exploring several trade-off opportunities (e.g., contract power
generation, contract mining, and autonomous truck haulage), and we
expect to incorporate recommendations from our 2019 preliminary
feasibility study and update minor parts of the Mt Todd mine design
to be consistent with the Mining Management Plan.
Recent Drilling Results
Vista continued exploration drilling at Mt Todd
during the quarter ended June 30, 2021. The drilling program has
focused on identifying areas with the greatest potential for future
resource growth along strike from the Batman deposit approximately
1.9 Km north to the Golf-Tollis/Penguin targets. To date, Vista has
completed 16 of 18 planned holes (5,466 of the planned 6,000
meters). Each of the holes completed has intersected mineralization
consistent with our geologic model. The most recent drill hole
(VB21-011) intersected mineralization that is both thicker and of
higher grade than observed in previous drill holes in the current
program. Of approximately 399 meters drilled in VB21-011, a total
of 200 meters intersected mineralization with average grade of 0.63
g Au/t, including 9.9 meters @ 2.08 g Au/t, 14.3 meters @1.42 g
Au/t, 10.2 meters @ 1.74 g Au/t, 26.7 meters @ 0.98 g Au/t, and
14.0 meters @1.22 g Au/t. (For complete results of this hole and
hole VB21-010, please refer to our press release dated July 15,
2021.)
Figure 1 below is an aerial view of the drill
locations for the holes in the current program. The image is
looking south, with the Batman pit located in the upper-right
corner of the image. VB21-12 is in-progress and is being co-funded
by the Northern Territory’s Geophysics and Drilling Collaborations
(“GDC”) program. The GDC program is funded by the Resourcing the
Territory initiative and aims to increase the intensity of
exploration drilling and geophysics in underexplored areas of the
Northern Territory. Vista was one of 15 companies receiving an
award under the current round of GDC funding.
Figure 1 - Aerial view of the drill
locations for the holes in the current program
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Mr. Earnest commented, “We are extremely pleased
with our drilling results to date and believe there is opportunity
for significant resource growth and an extended life at Mt Todd.
Given the success of the current drill program, Vista recently
announced additional holes for a third phase of drilling totaling
approximately 3,000 meters.”
Management Conference Call
Management’s quarterly conference call to review
financial results for the quarter ended June 30, 2021 and to
discuss corporate and project activities is scheduled on Friday,
July 30, 2021 at 10:00 am MDT (12:00 pm EDT).
Participant Toll Free: (844) 898-8648Participant
International: (647) 689-4225Conference ID: 7260176
This call will also be archived and available at
www.vistagold.com after July 30, 2021. Audio replay will be
available for 21 days by calling toll-free in North America (855)
859-2056 or (404) 537-3406.
If you are unable to access the audio or
phone-in on the day of the conference call, please email your
questions to ir@vistagold.com.
For further information, please contact Pamela
Solly, Vice President of Investor Relations, at (720) 981-1185.
About Vista Gold Corp.
Vista is a gold project developer. The Company’s
flagship asset is the Mt Todd gold project located in the Tier 1,
mining friendly jurisdiction of Northern Territory, Australia.
Situated approximately 250 km southeast of Darwin, Mt Todd is the
largest undeveloped gold project in Australia and, if developed as
presently designed, would potentially be Australia’s fourth largest
gold producer on an annual basis, with lowest tertile in-country
and global all-in sustaining costs. All major operating and
environmental permits have now been approved.
For further information, please contact Pamela
Solly, Vice President of Investor Relations, at (720) 981-1185.
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
belief in us completing the remaining feasibility engineering in
the process plant (piping, electrical, and instrumentation),
updating project designs to be consistent with the recently
approved Mining Management Plan, and completing an economic
evaluation using a gold price more reflective of the current market
price, which is expected to increase gold reserves and extend the
mine life by incorporating a greater portion of the currently
defined measured and indicated resources into the mine plan; our
belief that we have been very successful in de-risking Mt Todd and
expect that our current programs will further validate the Mt Todd
design and economics, increase reserves and mine life, and
demonstrate district-scale potential within the Company’s mining
licenses; our expectation to complete the feasibility study during
Q1 2022; our belief that the engineering work for Mt Todd has
previously been completed to feasibility study standards; our
expectation that we will incorporate recommendations from the 2019
prefeasibility study and update minor parts of the Mt Todd mine
design to be consistent with the Mining Management Plan; and our
belief that Mt Todd is the largest undeveloped gold project in
Australia 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 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, uncertainties inherent in the exploration of mineral
properties, the possibility that future exploration results will
not be consistent with the Company’s expectations; there being no
assurance that the exploration program or programs of the Company
will result in expanded mineral resources; 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 25, 2021 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.
Cautionary Note to United States
Investors
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. The technical reports referenced in this press
release uses the terms defined in Canadian National Instrument
43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)
and the Canadian Institute of Mining, Metallurgy and Petroleum (the
“CIM”) – CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council, as amended (the “CIM
Definition Standards”). These standards are not the same as
reserves under the SEC’s Industry Guide 7 and may not constitute
reserves or resources under the SEC’s newly adopted disclosure
rules to modernize mineral property disclosure requirements (“SEC
Modernization Rules”), which became effective February 25, 2019 and
will be applicable to the Company in its annual report for the
fiscal year ending December 31, 2021. Under the currently
applicable 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. Additionally, the technical reports 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 normally are not permitted to be used in
reports and registration statements filed with the SEC. Mineral
resources described in the technical reports 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.
“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 any or all 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.
Under the SEC Modernization Rules, the
definitions of “proven mineral reserves” and “probable mineral
reserves” have been amended to be substantially similar to the
corresponding CIM Definition Standards and the SEC has added
definitions to recognize “measured mineral resources”, “indicated
mineral resources” and “inferred mineral resources” which are also
substantially similar to the corresponding CIM Definition Standard.
However there are differences between the definitions and standards
under the SEC Modernization Rules and those under the CIM
Definition Standards and therefore once the Company begins
reporting under the SEC Modernization Rules there is no assurance
that the Company’s mineral reserve and mineral estimates will be
the same as those reported under CIM Definition Standards as
contained in the technical reports prepared under CIM Definition
Standards or that the economics for the Mt Todd project estimated
in such technical reports will be the same as those estimated in
any technical report prepared by the Company under the SEC
Modernization Rules in the future.
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