7961
SHAFFER PARKWAY
SUITE 5
LITTLETON, COLORADO 80127
TELEPHONE (720) 981-1185
FAX (720) 981-1186 Trading Symbol: VGZ
Toronto and NYSE Amex Stock Exchanges
_______________ NEWS __________________
Vista Announces
Paredones Amarillos Gold Project Feasibility Study Update Results and Provides
Project Update
Denver, Colorado, September 2, 2009 – Vista Gold Corp. (“Vista” or the
“Company”) (TSX & NYSE Amex: VGZ) is
pleased to announce the results of a Feasibility Study Update (the “Updated
Study”) completed by SRK Consulting (“SRK”) of Lakewood, Colorado, on the
Company’s wholly-owned Paredones Amarillos gold project located in Baja
California Sur, Mexico.
During the past four months, Vista
has undertaken a detailed review of its Paredones Amarillos gold project. The Roberts & Schaefer Company, a large
engineering and construction firm based in Salt Lake City,
Utah,
has reviewed the process facility design to optimize the process area layout,
confirmed the proposed production parameters and constructability, and
re-estimated the capital and operating costs for the process area. The
re-estimated capital and operating costs were incorporated in the Updated Study
of the project, which supersedes the economic evaluation reported in the
Company’s September 8, 2008 press release, in connection with the feasibility
study of the Paredones Amarillos gold project (the “Feasibility Study”) and the
related technical report entitled “Feasibility Study NI 43-101 Technical Report
Vista Gold Corp. Paredones Amarillos Gold Project Baja California Sur, Mexico”
dated October 20, 2008.
Other cost estimates for the proposed project
were reviewed and updated by SRK and incorporated into the Updated Study to
reflect current estimated capital and operating cost inputs and commodity
prices. The Updated Study estimates a
decrease in capital and operating costs and improved project economics. The mineral resources, mineral reserves, mine
life and stripping ratios reported in the Feasibility Study remain
unchanged. The highlights from the
Updated Study compared to the Feasibility Study results are shown in the
following table (all currency amounts are in U.S. Dollars):
|
Selected Operating, Cost and Return Estimates
|
|
Life-of-Mine Gold Production
|
1,203,000 ounces
|
|
Average Annual Gold Production
|
127,400 ounces per year
(142,900 ounces per
year for the first five years)
|
|
|
Feasibility Study
|
Updated Study
|
|
Pre-Production Capital Costs
|
|
|
|
Total
|
$197.2 million
|
$189.8 million
|
|
$ per ounce gold produced
|
$165
|
$155
|
|
Cash Operating Costs
($ per ounce gold produced)
|
|
|
|
Life-of-Mine Average
|
$419
|
$406
|
|
Average for First Five Years
|
$380
|
$372
|
|
Financial Analysis
|
|
|
|
Average Gold Price
|
$771 per oz.1
|
$771 per oz.1
|
$950 per oz.2
|
|
Payback Period
|
3.4 years
|
2.9 years
|
2.3 years
|
|
NPV at 5% Discount Rate (pre-tax)
|
$128.9 million
|
$150.0 million
|
$303.9 million
|
|
Internal Rate of Return
|
21.0 % pre-tax
16.6 % after-tax
|
24.7 % pre-tax
19.6 % after-tax
|
37.8 % pre-tax
31.0 % after-tax
|
|
1) Feasibility Study Base Case Gold Price Profile ($850 for 1st
3 years, $725 thereafter) 2)
$950 gold price demonstrates upside at current gold prices
|
The Updated Study was prepared by SRK. Terry Braun, P.E., Principal of SRK, an
independent “Qualified Person” as defined by Canadian National Instrument
43-101, supervised the preparation of scientific and technical information
contained in this press release. The
Company anticipates filing the Updated Study on SEDAR and EDGAR within 10 days
of this press release.
On August 4, 2009, Vista
announced that authorizations had been received for a confirmatory drilling
program at the Paredones Amarillos gold project. Drilling started on Friday, August 28, 2009,
and Major Drilling de Mexico,
S.A. de C.V., under the direction of Vista’s
exploration team, has completed the first of thirteen holes. Additional metallurgical tests to be
undertaken on the new samples from this drilling program are expected to
confirm the process plant design criteria and provide additional validation of
the mineral reserve model.
Fred Earnest, Vista’s
President and Chief Operating Officer, stated, “We are very pleased with the
results of the Feasibility Study Update for the Paredones Amarillos gold
project. The project has been subjected
to a detailed and rigorous review of the design criteria and cost assumptions
from the Feasibility Study completed in 2008.
This effort supports our belief that the project can be built and
operated as expected, and we believe that the project continues to represent an
attractive investment for Vista as it
advances its plan to become a mid-tier gold producer.”
Vista’s
advisors continue to work with Mexican authorities to expedite the approval of
the Temporary Occupation Permit and the Change of Land Use Permit for the
Paredones Amarillos gold project. Mr.
Earnest commented, “The review process continues to advance favourably and we
anticipate the approval process to reach a successful conclusion in the near
future. We have also initiated a
community engagement program in anticipation of receiving the permits. We expect this program to involve several
different workshops and meetings over the course of the next 3-4 months as we
work with the local communities and stakeholders to ensure the successful
development of the Paredones Amarillos gold project.”
About Vista Gold Corp..
Since 2001, Vista
has acquired a number of gold projects with the expectation that higher gold
prices would increase their value. For more information about our projects,
including technical studies and resource estimates, please visit our website at
www.vistagold.com.
Vista has taken steps to advance the Paredones Amarillos gold project located
in Baja California Sur,
Mexico, towards
production. These steps include the
completion of a definitive feasibility study, the purchase of long-delivery
processing equipment, and the purchase of land for the processing facilities,
related infrastructure and the desalination plant. The results of a preliminary
economic assessment completed in 2009 on the Mt.
Todd gold project in Australia
are encouraging and Vista is undertaking
other studies to advance the project, with the completion of a preliminary
feasibility study targeted for the fourth quarter of 2009. Vista’s other holdings include the Guadalupe
de los Reyes gold project in Mexico, the Yellow Pine gold project in Idaho, the
Awak Mas gold project in Indonesia, and the Long Valley gold project in
California.
Forward-Looking
Statements
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 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 estimates of capital and operating costs, estimates of production and
life-of-mine, and estimates of financial payback period and internal rate of
return of the Paredones Amarillos gold project, financial and operating results
and estimates; potential funding requirements and sources of capital; plans for
budgeting financial recoveries; the timing, performance and results of
feasibility studies and economic evaluations including the timing and receipt
of required land use, environmental and other permits for the Paredones
Amarillos gold project and timing for starting and completion of drilling and
testing programs at the Paredones Amarillos gold project; the timing and
outcome of the application for the Temporary Occupation Permit (“TOP”) and for
the new Change of Land Use Permit (“CUSF”) for the Paredones Amarillos gold
project and timing for confirmation of the status of such permits; anticipated
timing of commencement of construction and commencement of production at the
Paredones Amarillos gold project; preliminary assessment results for the Mt.
Todd gold project; and plans and timing for a preliminary feasibility study at
the Mt. Todd gold project; Vista’s future business strategy; goals; operations;
plans; potential project development; future gold prices; Vista’s potential
status as a producer including plans and timing of potential production; and
other such matters are forward-looking statements and forward-looking
information. When used in this press
release, the words “estimate”, “plan”, “will”, “target”, “anticipate”,
“expect”, “intend”, “believe” 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, risks relating to general
economic conditions, delays and incurrence of additional costs in connection
with our Paredones Amarillos gold project, including uncertainty relating to
timing and receipt for required governmental permits; uncertainty relating to
timing and outcome of the TOP and the new CUSF for the Paredones Amarillos gold
project, uncertainty of feasibility study results and preliminary assessments
and of estimates on which such results are based; risks relating to delays in
commencement and completion of construction at the Paredones Amarillos and Mt.
Todd gold projects; risks
of significant cost increases; risks of shortages of equipment or supplies; 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; risks related to
repayment of debt; risks related to increased leverage; and uncertainty of
being able to raise capital on favorable terms or at all; as well as those
factors discussed in Vista’s latest Annual Report on Form 10-K, as amended and
Quarterly Report on Form 10-Q 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.
There can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from those
anticipated in such statements. 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.
All mineral reserves and
resources have been estimated in accordance with the definition standards on
mineral resources and mineral reserves of the Canadian Institute of Mining,
Metallurgy and Petroleum referred to in National Instrument 43-101, commonly
referred to as NI 43-101. U.S.
reporting requirements for disclosure of mineral properties are governed by the
United States Securities and Exchange Commission (SEC) Industry Guide 7.
Canadian and Guide 7 standards are substantially different and the information
contained in this press release, the Updated Study and the Feasibility Study
are not comparable to similar information disclosed by U.S.
companies. This press release, the Updated Study and the Feasibility Study
referenced in this press release use the terms “measured,” “indicated,” and
“inferred” resources. We advise investors that while those terms are recognized
and required by Canadian regulations, the SEC does not recognize them. Inferred
mineral resources are considered too speculative geologically to have economic
considerations applied to them that enable them to be categorized as mineral
reserves. 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 feasibility
or pre-feasibility studies, except in rare cases. U.S.
investors are cautioned not to assume that part or all of an inferred resource
exists, or is economically or legally minable. U.S. investors are
cautioned not to assume that any part
or all of mineral deposits in these
categories will ever be converted into
reserves.
For further information, please contact Connie
Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com