DENVER, Oct. 7, 2019 /CNW/ -- Vista Gold Corp. ("Vista"
or the "Company") (NYSE American and TSX: VGZ) today announced that
it has completed and filed the National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI 43-101")
preliminary feasibility study (the "PFS") for its Mt Todd gold
project ("Mt Todd" or the "Project") in Northern Territory,
Australia to support the results
of its updated preliminary feasibility study announced on
September 10, 2019. The PFS
successfully confirmed the efficiency of ore sorting across a broad
range of head grades, the natural concentration of gold in the
screen undersize material prior to sorting, the efficiency of fine
grinding and the resulting improved gold recoveries, and the
selection of FLSmidth's VXP mill as the preferred fine grinding
mill.
The PFS provides an assessment of the Project at a gold price of
US$1,350 per troy ounce with a
foreign exchange rate of US$0.70 per
Australian dollar. The base case for the PFS evaluates a 50,000
tonne per day ("tpd") owner-operated, open-pit operation with a
conventional three-stage crush and two-stage grind comminution
circuit followed by a carbon-in-pulp gold recovery circuit. The
results of an alternate case designed to mine and process 33,000
tpd are also included in the PFS. Additionally, the PFS
incorporates the results of metallurgical optimization work, a
redesign of the fine grinding circuit, construction and ramp-up
schedule changes and a comprehensive review of all aspects of the
Project, including consideration of an independent benchmarking
study of key PFS parameters. For further information on the results
of the PFS and the 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 October 7, 2019, with an effective date of
September 10, 2019, which is
available on SEDAR at www.sedar.com, EDGAR at www.sec.gov, as well
as on Vista's website under "Mt Todd – Technical
Reports."
Vista's President and CEO, Frederick H.
Earnest, commented, "We are pleased with the results of the
PFS, which reflect improved average life of mine gold recoveries to
91.9%, net present value at a 5% discount rate ("NPV5%")
of $823 million and an internal rate
of return ("IRR") of 23.4%, all at a conservative gold price and
foreign exchange rate. We believe that Mt Todd has been de-risked
through intensive, multi-year studies and application of proven
technologies. All major environmental approvals have been received.
We believe that Mt Todd is an exceptional asset with a
NPV5% of US$1.15 billion
and an IRR of 30.2% at the current gold price and foreign exchange
rate. We do not believe that the debt and dilution to build Mt Todd
on a stand-alone basis is in the best interest of our shareholders.
Looking ahead, we are focused on identifying prospective
development partners that we believe will recognize the value of Mt
Todd, allowing us to provide what we view as appropriate reward for
Vista shareholders. We are focused on creating shareholder value,
and if needed we are prepared to preserve the value of Mt Todd
until an appropriate strategic transaction can be completed that
will reward our shareholders."
John Rozelle, Vista's Sr. Vice
President, a Qualified Person as defined by NI 43-101, has approved
the information in this press release.
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 known undeveloped gold project in Australia.
For further information, please contact Pamela Solly, Vice President of Investor
Relations, at (720) 981-1185.
For more information about our projects, including technical
studies and mineral resource estimates, please visit our website at
www.vistagold.com.
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 Vista expects or
anticipates will or may occur in the future, including such things
as, the Company's continued work on the Project; projected project
economics, including anticipated production, average cash costs,
before and after-tax NPV5%, IRR, capital requirements
and expenditures, gold recovery after-tax payback, operating costs,
average tonne per day milling, mining methods procedures, estimated
gold recovery, project design, and life of mine; that Mt Todd has
been de-risked through intensive, multi-year studies and
application of proven technologies; Vista's belief that the debt
and dilution to build Mt Todd on a stand-alone basis is not in the
best interest of its shareholders; Vista's focus on identifying
prospective development partners that it believes will recognize
the value of Mt Todd; Vista's intention to preserve the value of Mt
Todd until an appropriate strategic transaction can be completed
that will reward our shareholders and other such matters 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: the accuracy
of the results of the PFS, mineral resource and reserve estimates,
and exploration and assay results; the terms and conditions of our
agreements with contractors and our approved business plan; the
anticipated timing and completion of a feasibility study on the
Project; the anticipated receipt of required permits; no change in
laws that materially impact mining development or operations of a
mining business; the potential occurrence and timing of a
production decision; the anticipated gold production at the
Project; the life of any mine at the Project; and all economic
projections relating to the Project, including estimated cash cost,
NPV5%, IRR, and initial capital requirements. When used
in this press release, the words "optimistic," "potential,"
"indicate," "expect," "intend," "plans," "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 Vista to be materially different
from any future results, performance or achievements expressed or
implied by such statements. Such factors include, among others,
uncertainty of mineral resource estimates, estimates of results
based on such mineral resource estimates; risks relating to cost
increases for capital and operating costs; risks related to the
timing and the ability to obtain the necessary permits, 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
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; as well as those factors discussed under the headings
"Note Regarding Forward-Looking Statements" and "Risk Factors" in
Vista's Annual Report Form 10-K as filed in February 2019 and other documents filed with the
U.S. Securities and Exchange Commission and Canadian securities
regulatory authorities. Although Vista has 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, Vista assumes 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.
This press release uses the terms "Proven reserves" and "Probable
reserves". Reserve estimates contained in this press release are
made pursuant to NI 43-101 standards in Canada and do not represent reserves under the
standards of the SEC's Industry Guide 7 and may not constitute
reserves under the SEC's newly adopted disclosure rules to
modernize mineral property disclosure requirements, 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, this press release 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 this press release 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. The term "contained gold
ounces" used in this press release is not permitted under the rules
of the SEC. "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.
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SOURCE Vista Gold Corp.
