DENVER, Oct. 29, 2018 /CNW/ -- Vista Gold Corp. (TSX
& NYSE American: VGZ) ("Vista" or the "Company") today
announced its unaudited financial results for the third quarter
ended September 30, 2018.
Management's quarterly conference call to discuss these results is
scheduled for 10:00 a.m. MDT on
October 31, 2018. The Company's
unaudited financial statements, Management's Discussion and
Analysis together with other important disclosures can be found in
the Company's Quarterly Report on Form 10-Q, filed on October 29, 2018 with the U.S. Securities and
Exchange Commission and the Canadian securities regulatory
authorities.
Summary of Q3 2018 Financial Results
We reported a net loss of $2.1
million or $0.02 per share for
the three-month period ended September 30,
2018. The loss is comprised of $1.9
million of operating expenses, a $0.3 mark-to-market loss on our investment in
Midas Gold Corp., offset by other income of $0.1 million.
Our working capital at September 30,
2018 totaled approximately $15.0
million, including cash and short-term investments
(comprised of government securities) of approximately $10.2 million. The Company currently has no
debt.
Mt Todd Update
During the quarter, we completed grinding and leaching tests
indicating that gold recoveries exceeding 90% may be achieved for
the Mt Todd gold project, depending on final grind size.
These tests of the second stage grinding circuit suggest that
the Mt Todd ore can be ground to a finer final product size with
lower power consumption than previously estimated. Leaching
the finer final product size material again confirmed higher
recoveries at finer grind sizes. Based on these initial results,
Vista has commenced additional testing to: (a) confirm results over
a broad range of feed grades, (b) justify design changes and (c)
support a possible update of the project economics.
Frederick H. Earnest, President
and Chief Executive Officer, commented, "We are excited about the
potential for the gold recovery improvements at Mt Todd, indicated
by the test results announced this quarter. Based on those
results we are now targeting a gold recovery greater than 90% as
compared to 86.4% estimated in our January
2018 PFS. We believe these improved recoveries can be
achieved without any increase in power consumption or capital
costs. We estimate that each 1% improvement in gold recovery adds
about 0.5% to Mt Todd's after-tax IRR, and about $25 million to after-tax NPV5.
To advance our testing of the second stage grinding circuit to
feasibility level, we are conducting additional fine grinding tests
on samples representing a variety of ore types from Mt Todd and
covering a range of head grades. These grinding tests will be
followed by leaching tests to determine expected recoveries for a
range of ore grades at various finer grind sizes. The tests
will also provide further data regarding the power requirements and
grinding media consumption. This is a continuation of our strategy
to add value at a relatively low cost. While we believe that the Mt
Todd project demonstrates significant value at today's gold price,
we are committed to achieving greater shareholder value that will
accrue from our ongoing optimization work and improved market
conditions."
Technical Report on Mt Todd
For further information on the Mt Todd Gold Project, see the
Technical Report entitled "NI 43-101 Technical Report Mt Todd Gold
Project 50,000 tpd Preliminary Feasibility Study Northern
Territory, Australia," dated
March 2, 2018 with an effective date
of January 24, 2018, which is
available on SEDAR as well as on Vista's website under the
Technical Reports section.
John Rozelle, Vista's Sr. Vice
President, a Qualified Person as defined by NI 43-101, has approved
the information in this press release.
Management Conference Call
A conference call with management to review our financial
results for the third quarter ended September 30, 2018 and to discuss corporate and
project activities is scheduled for Wednesday, October 31, 2018 at 10:00 a.m. MDT.
Participant Toll Free: 844-898-8648
Participant International: 647-689-4225
Conference ID: 1557628
This call will also be web-cast and can be accessed at the
following web location:
http://event.on24.com/r.htm?e=1862416&s=1&k=6E652879929B43149713ECBCB7228315
This call will be archived and available at www.vistagold.com
after October 31, 2018. Audio
replay will be available for 21 days by calling toll-free in
North America: 855-859-2056,
passcode 1557628.
If you are unable to access the audio or phone-in on the day of
the conference call, please email questions to Connie Martinez, Manager – Investor Relations
(email: connie@vistagold.com), and we will try to address these
questions prior to or during the conference call.
All dollar amounts in this press release are in U.S.
dollars.
About Vista Gold Corp.
The Company is a well-funded gold project developer. Our
principal asset is our flagship Mt Todd gold project in Northern
Territory, Australia. Mt Todd is the largest undeveloped gold
project in Australia.
For further information, please contact Connie Martinez 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 that we may achieve gold recoveries exceeding 90% for
the Mt Todd gold project, depending on final grind size; our belief
that the Mt Todd ore can be ground to a finer final product size
with lower power consumption than previously estimated; our
estimate that each 1% improvement in gold recovery adds about 0.5%
to Mt Todd's after-tax IRR, and about $25
million to after-tax NPV5; our plans to advance
our testing of the second stage grinding circuit to feasibility
level, followed by leaching tests to determine expected recoveries
for a range of ore grades at various finer grind sizes; our
expectation that these tests will also provide further data
regarding the power requirements and grinding media consumption;
our belief that the Mt Todd project demonstrates significant value
at today's gold price, and that greater shareholder value will
accrue from our ongoing optimization work and improved market
conditions; 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: no change to
laws or regulations impacting mine development or mining
activities, our approved business plans, mineral resource and
reserve estimates and results of preliminary economic assessments,
preliminary feasibility studies and feasibility studies on our
projects, if any, our experience with regulators, our experience
and knowledge of the Australian mining industry 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 on March 6, 2018 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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SOURCE Vista Gold Corp.