Vista Provides Update on Exploration and Metallurgical Testing Results at the Mt. Todd Project in NT, Australia
22 Juli 2008 - 2:35AM
PR Newswire (US)
DENVER, July 21 /PRNewswire-FirstCall/ -- Vista Gold Corp. (TSX
& Amex: VGZ) ("Vista" or the "Company") is pleased to provide
an update on activities underway at its Mt. Todd Project in the
Northern Territory, Australia. The Company is currently conducting
technical programs that management expects will lead to the
completion of a preliminary feasibility study by the end of the
year. Part of this year's program is a diamond core drilling
program totaling approximately 7,000 meters in 14 holes to obtain
further information about the size and quality of the mineral
resource. The program is designed to increase the sampling density
to support the conversion of inferred gold resources to measured
and indicated resources at depth, and to explore for additional
resources down dip. In a press release dated February 27, 2008,
Vista reported an updated gold resource estimate including the
results of a 25 hole program that resulted in an increase in
measured resources(1) of 769,633 ounces of gold and an increase in
indicated resources(1) of 367,686 ounces of gold resulting in a
combined increase in measured and indicated resources(1) of
1,137,319 ounces of gold at a cut-off grade of 0.015 ounces of gold
per ton. These estimates (as reported in Vista's February 27, 2008
press release) are shown below. Metric Average Average Resource
Tonnes Grade Short Tons Grade Contained Gold Classification (x1000)
(grams/tonne) (x1000) (ounces/ton) Ounces (x1000) Measured (1)
43,543 0.96 47,987 0.028 1,346 Indicated (1) 45,746 1.05 50,425
0.031 1,549 Measured & Indicated (1) 89,280 1.01 98,413 0.029
2,895 Inferred (2) 58,816 0.81 64,832 0.024 1,532 (1) Cautionary
Note to Investors concerning estimates of Measured and Indicated
Resources: This document uses the terms "measured resources" and
"indicated resources". We advise U.S. investors that while these
terms are recognized and required by Canadian securities
regulators, the U.S. Securities and Exchange Commission does not
recognize them. Investors are cautioned not to assume that any part
or all of mineral deposits in these categories will ever be
converted into reserves. (2) Cautionary Note to Investors
concerning estimates of Inferred Resources: This document uses the
term "inferred resources". We advise U.S. investors that while this
term is recognized and required by Canadian securities regulators,
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
prefeasibility studies, except in rare cases. Investors are
cautioned not to assume that all or any part of an inferred
resource exists or is economically or legally minable. The current
drilling program began in April 2008, and is continuing under the
direct supervision of Tim Tuba, Vista's Exploration Manager in
Australia. The core drilling is being completed by Boart Longyear
Australia Pty Ltd, with the sample preparation being completed by
ALS Chemex in Adelaide, South Australia, followed by assaying for
gold by ALS Chemex in Perth, Western Australia. A sample quality
control/quality assurance program has been implemented and check
assaying is being done by Genalysis Laboratory Services Pty Ltd in
Perth. Multi-element analyses, including copper, are being done by
ALS Chemex, also in Perth. All holes were angle holes drilled to
intersect mineralization at close to right angles; however, due to
physical constraints and the complex nature of the deposit, true
thickness of the drilled intervals cannot be assumed from the
measured intercepts. Sampling and assaying methods are being
conducted in accordance with the CIM Mineral Exploration Best
Practices Guidelines. All samples taken were one meter in length,
except the last interval of the drill hole. At present, eight holes
have been completed with gold assays received for the first hole
drilled. Currently, the time from shipment of the sawed drill core
until receipt of assays is approximately 55 days, which is longer
than expected but reflects actual turnaround times currently
experienced. The assays include the following highlights: Assay
Assay Drill Hole Interval Intercept (grams/ Including Intercept
(grams/ (meters) (meters) tonne) (meters) (meters) tonne) VB07-026
506-694 189 0.94 505-519 14 1.39 551-566 15 1.92 637-652 15 1.47
683-694 11 1.87 The assay analysis has been completed by ALS Chemex
in accordance with industry accepted standards and has been
reviewed by Tim Tuba, P. Geo. as the qualified person under NI
43-101. A metallurgical test program is also designed to determine
the processing parameters for the project. Initial test work by the
Company indicated that it may be possible to recover the copper by
flotation into a concentrate containing both gold and copper and by
leaching the cleaner tail to recover gold, and subsequently,
produce a gold bullion product. The Company is also investigating
technology to reduce the cost and energy required to grind the hard
Mt. Todd ore. Vista has recently completed a program with Polysius
Corp., of Beckum, Germany, to evaluate the effectiveness of
crushing and grinding of the ore using high pressure grinding roll
(HPGR) technology compared with a conventional crushing,
semi-autogenous grinding and ball mill grinding circuit. The
results of this testing have been reviewed by Deepak Malhotra of
Resource Development Inc. of Wheat Ridge, Colorado, a consulting
metallurgist and qualified person. The tests indicate that the use
of this technology in the crushing/grinding circuit has the
potential to reduce energy requirements by approximately 9.5
kWhr/tonne, which at an estimated power cost of US$0.12 per kWhr
represents a savings of US$1.14 per tonne treated, when compared to
the use of a conventional crushing, SAG and ball mill grinding
circuit. Metallurgical tests using samples generated from the HPGR
tests have been completed, with assay results pending. For more
information on the resource estimates completed on the Mt. Todd
Project, please refer to Vista's January 4, 2007, February 27, 2008
and April 24, 2008 press releases, or to the completed technical
studies, all of which have previously been filed on
http://www.sedar.com/ and may also be found on Vista's website at
http://www.vistagold.com/. Fred Earnest, President and COO stated,
"The drilling results obtained thus far support our belief that the
Mt. Todd ore body continues at depth with higher assay values than
those encountered in shallow drilling. The drilling program is
proceeding from the south to the north and will test the down-dip
extension of the heart of the ore body as identified by last year's
drilling." He continued, "We believe that the HPGR test results
represent a significant breakthrough in processing the Mt. Todd
ore. We expect the reduction in power costs to have a significant
impact on the results of the preliminary feasibility study that we
intend to undertake at the conclusion of the drilling program. It
is unfortunate, but unavoidable, that the results of the drilling
and metallurgical test programs are currently being delayed by slow
turnaround of assay results from laboratories in the US and
Australia." About Vista Gold Corp. Since 2001, Vista has acquired a
number of gold projects with the expectation that higher gold
prices would significantly increase their value. For more
information about our projects, including technical studies and
resource estimates, please visit our website at
http://www.vistagold.com/. Vista is undertaking programs to advance
the Paredones Amarillos Project, including the preparation of a
definitive feasibility study and the purchase of long delivery
equipment items, so that construction can begin during the last
quarter of 2008. The results of a preliminary assessment completed
in 2007 on the Mt. Todd Project in Australia were encouraging and
additional technical studies are underway, with a definitive
feasibility study planned for completion by mid-2009. Vista's other
holdings include the Guadalupe de los Reyes Project in Mexico, the
Yellow Pine Project in Idaho, the Awak Mas Project in Indonesia,
and the Long Valley Project in California. This press release
contains forward-looking statements within the meaning of the U.S.
Securities Act of 1933 and U.S. Securities Exchange Act of 1934,
and forward-looking information within the meaning of applicable
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 plans for evaluation of the Mt. Todd Project including
preliminary assessment results and timing and anticipated results
for drilling, field mapping and sampling programs to be undertaken
at the Mt. Todd Project; resource estimates at the Mt. Todd
Project; capital and operating cost estimates; potential for
increasing estimated resources at the Mt. Todd Project and
potential for higher grade mineralization at the Mt. Todd Project;
results of metallurgical studies in connection with recovery of
copper and gold in a marketable concentrate, and effectiveness of
high pressure crushing rolls to process hard mineralized material
at the Mt. Todd Project and potential for reduction in energy
requirements and for cost savings from utilization of high pressure
grinding roll technology at the Project; anticipated timing and
results for preliminary and definitive feasibility studies to be
undertaken at the Mt. Todd Project; anticipated timing and results
for a definitive feasibility study being undertaken at the
Paredones Amarillos Project; anticipated timing for construction
and development activities at the Paredones Amarillos Project;
Vista's future business strategy, competitive strengths, goals,
operations, plans, potential project development, future share
price and valuation, future gold prices; Vista's potential status
as a producer; and other such matters, are forward-looking
statements and information. When used in this press release, the
words "estimate", "plan", "anticipate", "expect", "intend",
"believe" and similar expressions are intended to identify
forward-looking statements and 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
forward-looking statements and information. Such factors include,
among others, risks relating uncertainty of preliminary assessment
results and of feasibility study results and estimates on which
such results are based; uncertainties involved in the determination
of the economic viability of a deposit, including estimates of
mineral reserves, metallurgical recoveries, costs and gold prices;
risks relating to scheduling for feasibility studies; risks
relating to delays and incurrence of additional costs in connection
with the feasibility study underway at Vista's Paredones Amarillos
Project, including uncertainty relating to timing and receipt for
required governmental permits; risks relating to cost increases for
capital and operating costs including cost of power; risks relating
to delays in commencement and completion of construction at the
Paredones Amarillos Project and the Mt. Todd Project; risks of
shortages of equipment or supplies; risks of significant cost
increases; risks of inability to achieve anticipated production
volumes; risks that Vista's acquisition, exploration and property
advancement efforts will not be successful; risks relating to
fluctuations in the price of gold; the inherently hazardous nature
of mining-related activities; uncertainties concerning reserve and
resource estimates; 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;
intense competition in the mining industry; uncertainty of being
able to raise capital on favorable terms or at all; and external
risks relating to the economy and credit markets in general; as
well as those factors discussed in Vista's latest Annual Report on
Form 10-K, Quarterly Report on Form 10-Q and other documents filed
with the U.S. Securities and Exchange Commission and Canadian
securities regulators. Although Vista has attempted to identify
important factors that could cause actual results to differ
materially from those described in forward-looking statements and
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such statements and information will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements and information. Except as required
by law, Vista assumes no obligation to publicly update any
forward-looking statements and information, whether as a result of
new information, future events or otherwise. For further
information, please contact Connie Martinez at (720) 981-1185, or
visit the Vista Gold Corp. website at http://www.vistagold.com/
DATASOURCE: Vista Gold Corp. CONTACT: Connie Martinez of Vista Gold
Corp., +1-720-981-1185 Web site: http://www.vistagold.com/
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