Vista Gold Corp. Announces Joint Venture Agreement for Awak Mas Gold Project in Indonesia
Vista Gold Corp. ("Vista") (TSX & NYSE Amex: VGZ) announced today that its wholly-owned subsidiary, Vista Gold (Barbados) Corp., has signed a Joint Venture Agreement with Pan Asia Resources Corporation ("Pan Asia") with respect to the development of the Awak Mas gold project in Indonesia.
The Joint Venture Agreement provides Pan Asia, a privately held resource development company, with the opportunity to earn a 60% interest in the Awak Mas project by (i) expending US$3 million on the project within the next 30 months, (ii) completing an environmental impact assessment and feasibility study (in compliance with the Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects), each of which is required by the Contract of Work granted by the Indonesian Government under which the Awak Mas project is held, and (iii) issuing to Vista two million shares of Pan Asia and the right to purchase up to an additional two million shares of Pan Asia in the event of an initial public offering of Pan Asia shares (on the same terms as offered under such initial public offering).
Pan Asia has informed Vista that it intends to immediately commence the studies relating to the environmental impact assessment and may undertake some additional drilling prior to re-estimating the gold resources for the Awak Mas project under current market conditions. Under the terms of the Joint Venture Agreement, Vista will retain its controlling interest in the Awak Mas project until Pan Asia completes the earn-in conditions described above.
Fred Earnest, President and COO of Vista, commented, "We are looking forward to working with Pan Asia on the Awak Mas project. We believe the in-country experience that Pan Asia's management team brings to the joint venture will significantly benefit the development of the project. We believe the joint venture allows us to advance the Awak Mas project and realize greater value from this project in our portfolio while we continue to focus on the development of our Paredones Amarillos and Mt. Todd gold projects."
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 undertaken programs to advance the Paredones Amarillos gold project, located in Baja California Sur, Mexico, including completion of a definitive feasibility study, the purchase of long delivery equipment items, and the purchase of land for processing facilities, a desalination plant and related infrastructure. The results of a preliminary economic assessment completed in 2009 on the Mt. Todd gold project in Australia are encouraging and Vista is undertaking a pre-feasibility study and additional resource drilling to advance the project. Vista's other holdings include the Guadalupe de los Reyes gold project in Mexico, Yellow Pine gold project in Idaho, Awak Mas gold project in Indonesia, and the Long Valley gold 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 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 potential of the joint venture with Pan Asia, the timing and completion of the earn-in requirements by Pan Asia, the advancement of the Awak Mas property, realization of greater value form the Awak Mas property, future financial and operating results and estimates; preliminary assessment results for the Awak Mas project and Mt. Todd gold project; and plans and timing for a preliminary feasibility study at the Awak Mas project and 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, uncertainty over timing and completion of the earn-in requirements for the joint venture by Pan Asia, risks related to entering into a joint venture with Pan Asia, including integration and control risks, uncertainty regarding the advancement and realization of value from the Awak Mas project, 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 the application for the Change of Forest Land Use Permit 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 US 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.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez, +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Commencement of New Drilling Program at the Mt. Todd Gold Project and Update on Pre-Feasibility Study
Vista Gold Corp. ("Vista" or the "Company") (TSX & NYSE Amex: VGZ) announced today that it has mobilized three drill rigs to its Mt. Todd gold project in Australia in anticipation of commencing a 14,000 meter drilling program beginning in early January.
The Company anticipates that the Mt. Todd drilling program will use two core rigs and one reverse circulation rig and contemplates 10 core holes (5,000 meters) and 18 reverse circulation holes (9,000 meters). The core drilling program is designed to test areas of the Batman deposit for potential resource expansion, to convert inferred resources(2) to measured and indicated resources(1) and to obtain samples for further metallurgical testing. This program is designed to follow-up on targets identified in two previous drilling programs which together have resulted in an increase in measured and indicated resources of 192% or 134.5 million tonnes containing approximately 3.37 million ounces of gold at an average grade of 0.8 grams of gold per tonne (See press releases of the Company dated January 4, 2007 and June 4, 2009). The reverse circulation drilling program is designed to test targets on Vista's exploration licenses located adjacent to the Batman deposit. These targets were identified by a recently completed field program. The drilling program is expected to be completed during the first quarter, 2010.
The Company also announced that it continues to advance its Pre-Feasibility Study ("PFS") for the Mt. Todd project and that the PFS is expected to confirm the principal metallurgical parameters used in the Mt. Todd Preliminary Economic Assessment ("PEA") announced in June 2009 and updated in August 2009. The PFS was originally targeted for completion by year-end 2009, but will now be deferred to enable the Company to incorporate the results of the new drilling program as well as to allow for additional engineering work, particularly with respect to the best approach for tailings disposal and storage.
Fred Earnest, President and COO of Vista, stated, "We expect the additional engineering, combined with the larger estimated resource base expected from the new drilling program will enhance the project economics. Assuming positive results from the PFS, we anticipate commencing a definitive feasibility study for Mt. Todd in the second half of 2010."
Tetra Tech Inc. of Golden, Colorado, is contracted to manage and prepare the PFS in accordance with Canadian National Instrument 43-101?Standards of Disclosure for Mineral Projects ("NI 43-101"). The PEA was prepared under the direction of Mr. John Rozelle, an independent qualified person under NI 43-101. The results of the PEA are outlined in a NI 43-101 technical report entitled "Mt. Todd Gold Project Updated Preliminary Economic Assessment Report, Northern Territory, Australia" and is dated June 11, 2009. The PEA is available on SEDAR at www.sedar.com. John Rozelle is the independent "qualified person," within the meaning of NI 43-101 who supervised the preparation of the scientific and technical information contained in this press release.
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 undertaken programs to advance the Paredones Amarillos gold project, located in Baja California Sur, Mexico, including a definitive feasibility study, the purchase of long delivery equipment items, 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 a pre-feasibility study and additional resource drilling to advance the project. Vista's other holdings include the Guadalupe de los Reyes gold project in Mexico, Yellow Pine gold project in Idaho, Awak Mas gold project in Indonesia, and the Long Valley gold project in California.
1. Cautionary Note to U.S. Investors concerning estimates of Measured and
Indicated Resources: This press release uses the terms "measured
resources," "indicated resources" and "measured & indicated resources."
We advise U.S. investors that while these terms are defined in and
required by Canadian regulations, these terms are not defined terms
under the U.S. Securities and Exchange Commission ("SEC") Industry
Guide 7 and are normally not permitted to be used in reports and
registration statements filed with the SEC. 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.
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.
2. Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources: This press release uses the term "inferred resources." We
advise U.S. investors that while this term is defined in and required
by Canadian regulations, this term is not a defined term under SEC
Industry Guide 7 and is normally not permitted to be used in reports
and registration statements filed with 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 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. 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.
U.S. investors are cautioned not to assume that any part or all of an
inferred resource exists or is economically or legally minable.
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 , estimates of mineral resources, the conversion of inferred mineral resources to measured and indicated resources, the conversion of mineral resources to mineral reserves, the potential to expand the resource base at the Mt. Todd gold project, the potential to enhance the project economics of the Mt. Todd gold project through engineering studies and the drill program, the anticipated timing, design and expected results of the drill program, the timing for completion and expected results of the PFS, the timing for commencement of the definitive feasibility study, the potential for gold resources in the Batman deposit and other targets within the Mt. Todd gold project, future gold prices, the confirmation of the metallurgical parameters of the Mt. Todd gold project, favorable effects of Mt. Todd project economics, the results of the PEA, and other such matters are forward-looking statements and forward-looking information. 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 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 resource estimates, estimates of results based on such resource estimates; risks relating to completing metallurgical testing; risks relating to cost increases for capital and operating costs; risks relating to delays in the completion of the drilling program, risks related to the adequacy of the design of the drilling program, risk regarding the PFS, risks relating to the delays at the Mt. Todd Project; risks related to 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; 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 under the headings "Uncertainty of Forward-Looking Statements" and "Risk Factors" in Vista's latest Annual Report on Form 10-K as filed on March 13, 2009, as amended April 16, 2009, and Quarterly Report on Form 10-Q, as filed November 9, 2009, 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.
Without limiting the foregoing, this press release uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosures an issuer makes of scientific and technical information concerning mineral projects. All mineral resource estimates contained in this press release, including the terms "measured mineral resources," "indicated mineral resources" and "inferred mineral resources," have been prepared in accordance with NI 43-101, and these standards differ significantly from the requirements of the SEC. The resource information contained in this press release is not comparable to similar information disclosed by U.S. companies. See the Cautionary Notes to U.S. Investors above.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Third Quarter 2009 Results and Conference Call with Management
Vista Gold Corp. (TSX & NYSE Amex: VGZ) ("Vista or the "Corporation") provides financial results for the three and nine months ended September 30, 2009, which were filed on November 9, 2009, with the US Securities and Exchange Commission and with the relevant securities regulatory authorities in Canada in the Corporation's Quarterly Report on Form 10-Q, and announces management's quarterly conference call scheduled for Wednesday, November 11, 2009 at 10:00 a.m. EST.
Financial Results
All amounts are in thousands of US Dollars (US$000's), except per share amounts and unless noted otherwise.
Our consolidated net loss for the three-month period ended September 30, 2009, was $1,717 or $0.05 per share compared to a consolidated net loss of $2,823 or $0.08 per share for the same period in 2008. Our consolidated net earnings for the nine-month period ended September 30, 2009, was $293 or $0.01 per share compared to a consolidated net loss of $6,994 or $0.20 per share for the same period in 2008. For the three-month period, the decrease in the consolidated net loss of $1,106 from the prior period is primarily due to a gain of $537 on the repurchase of the senior subordinated convertible notes ("Notes"). On July 14, 2009, we repurchased $1,333 of our Notes for $866, which resulted in a gain. Also, contributing to the decrease in the consolidated net loss for the three-month period was an increase in the gain on currency translation of $256 and a decrease in corporate administration and investor relations of $419; these amounts were partially offset by an increase in exploration, property evaluation and holding costs of $167. The increase in the consolidated net earnings of $7,287 for the nine-month period from the prior year period is largely due to a gain on disposal of marketable securities of $6,829. The gain was the result of the sale of our Allied Nevada Gold Corp. ("Allied") shares which we retained in connection with the transaction that resulted in the formation of Allied and the transfer of Vista's Nevada properties to Allied.
Net cash used in operating activities was $964 for the three-month period ended September 30, 2009, compared to $1,706 for the same period in 2008. The decrease of $742 is mostly the result of a decrease in cash used for accounts payable, accrued liabilities and other of $588, a decrease in cash used for prepaid expenses and other of $178, which was offset by an increase in cash used for accounts receivable of $37 and an increase in interest paid on our Notes of $11.
Net cash used in operating activities was $5,189 for the nine-month period ended September 30, 2009, compared to $4,985 for the same period in 2008. The increase of $204 is mostly the result of the increase in interest paid of $669 on the Notes.
Net cash used in investing activities decreased to $1,454 for the three-month period ended September 30, 2009, as compared to $3,342 for the same period in 2008. The decrease in cash used in investing activities of $1,888 is due to the following:
-- A decrease in cash used for additions to mineral properties of $1,742.
During the 2008 period, we undertook a drilling program at the Mt.
Todd gold mine and were in the process of completing a feasibility
study for the Paredones Amarillos gold project. These projects were
completed during 2008.
-- A decrease in cash received from short-term loans of $350. In
connection with the sale of our Amayapampa gold project in April 2008,
we loaned to Republic Gold Limited $350 to cover ongoing expenses at
the Amayapampa gold project. They repaid this amount during the
three-month period ended September 30, 2008.
Net cash provided by investing activities increased to $5,805 for the nine-month period ended September 30, 2009, as compared to net cash used in investing activities of $24,650 for the same period in 2008. The increase in cash provided by investing activities of $30,455 is primarily the result of the following:
-- A decrease in the additions to plant and equipment of $16,746. During
2008, we completed a brokered private placement of $30,000 principal
amount of Notes and used $16,000 of the proceeds towards the purchase
of gold processing equipment to be used at our Paredones Amarillos
gold project, which included the costs of relocating the equipment to
Edmonton, Alberta, Canada. There was no similar purchase during the
nine-month period ended September 30, 2009.
-- A decrease in the acquisition of mineral property of $452. On January
24, 2008, we completed the acquisition of interests in various mineral
properties adjacent to our Guadalupe de los Reyes gold project in
Mexico. The consideration paid by Vista for the acquisition of these
interests included cash payments totaling $452. There was no similar
purchase during the nine-month period ended September 30, 2009.
-- An increase in the proceeds from the sale of marketable securities of
$8,966. On April 3, 2009, we sold all 1,529,848 common shares of
Allied we held for $9,016.
-- An increase in the proceeds received upon the disposal of mineral
property. In June 2009, we sold most of the remaining patented mining
claims in Colorado for $188. There were no similar transactions
during the 2008 period.
-- A decrease in cash used for additions to mineral properties of $3,986.
During the 2008 period, we undertook a drilling program at the Mt.
Todd gold mine and were in the process of completing a feasibility
study for the Paredones Amarillos gold project. These projects were
completed during 2008.
Net cash provided by financing activities was $19,841 for the three-month period ended September 30, 2009, as compared to net cash provided by financing activities of $70 for the same period in 2008. This increase is the result of the completion of a public offering on September 21, 2009, and the completion of the over-allotment on September 25, 2009, in which we offered and sold an aggregate 10.12 million common shares. Proceeds to Vista after commission and other fees were $20.7 million ($20.5 million after fees paid subsequent to September 30, 2009). There were no similar transactions during the three-month period in 2008.
Net cash provided by financing activities was $19,841 for the nine-month period ended September 30, 2009, as compared to $31,470 for the same period in 2008. This decrease is primarily the result of the completion of the public offering and over-allotment as discussed during the three-month period as compared to the completion of a brokered private placement on March 4, 2008, in which we offered and sold $30,000 in aggregate principal amount of the Notes. Proceeds to Vista after legal and other fees were $28,390.
There were no warrant exercises or exercises of stock options during the three-month period ended September 30, 2009, as compared to stock option exercises of $70 during the 2008 period. There were no warrant exercises during the three-month period in 2008.
There were no warrant exercises or exercises of stock options during the nine-month period ended September 30, 2009, as compared to stock option exercises of $139 and warrant exercises of $2,941 during the 2008 period.
At September 30, 2009, our total assets were $94,266 compared to $75,765 at December 31, 2008, representing an increase of $18,501. At September 30, 2009, we had working capital of $33,596 compared to $21,209 at December 31, 2008, representing an increase of $12,387. This increase relates primarily to an increase in our cash balance from year end as a result of our public offering and the over-allotment during September 2009.
The principal component of working capital at both September 30, 2009, and December 31, 2008, is cash and cash equivalents of $33,723 and $13,266, respectively. Other components include marketable securities (September 30, 2009 -- $791; December 31, 2008 -- $8,153) and other liquid assets (September 30, 2009 - $600; December 31, 2008 - $593).
On September 21, 2009, we announced the closing of our previously announced public offering of common shares. We sold to Dahlman Rose & Company and Wellington West Capital Markets, as underwriters, 8.8 million common shares at a price of $2.25 per common share. We granted the underwriters a 30-day option to purchase up to 1.32 million additional common shares to cover over-allotments, if any.
On September 25, 2009, we announced the closing of the sale of 1.32 million common shares, pursuant to the underwriters' exercise of the over-allotment option, which Vista granted in connection with its public offering of common shares. Consistent with the public offering of common shares that closed on September 21, 2009, the 1.32 million common shares were sold to Dahlman Rose & Company LLC and Wellington West Capital Markets, as underwriters, at the public offering price of $2.25 per common share. The over-allotment and the public offering were made pursuant to Vista's shelf registration statement filed with the US Securities and Exchange Commission and a shelf prospectus filed with certain Canadian securities regulatory authorities. With the sale of the additional 1.32 million common shares to the underwriters pursuant to the exercise by the underwriters of their over-allotment option, an aggregate of 10.12 million common shares in total were sold in connection with the offering.
Proceeds to Vista from the offering, net of commissions and fees, were approximately $20.5 million, which includes net proceeds of approximately $2.7 million from the sale of the 1.32 million common shares pursuant to the underwriters' exercise of the over-allotment option.
Vista intends to use the net proceeds from the offering: (i) to fund drilling, exploration, and engineering/technical activities (including the preparation of a feasibility study) on its Mt. Todd gold project; (ii) to fund the engineering, design and other technical activities to advance its Paredones Amarillos gold project; (iii) to fund exploration activities and if warranted, drilling programs at its Guadalupe de los Reyes gold project and (iv) to fund acquisitions, and further development of acquired mineral properties, working capital requirements and/or for other general corporate purposes.
Selected Financial Three Months Ended Nine Months Ended
Data September 30, September 30,
2009 2008 2009 2008
U.S. $000's, except loss
per share
Results of operations
Net loss $(1,717) $(2,823) $293 $(6,994)
Basic and diluted loss
per share (0.05) (0.08) 0.01 (0.20)
Net cash used in
operations (964) (1,706) (5,189) (4,985)
Net cash used in
investing activities (1,454) (3,342) 5,805 (24,650)
Net cash provided by
financing activities 19,841 70 19,841 31,470
Financial position September 30, December 31,
2009 2008
Current assets $35,114 $22,012
Total assets 94,266 75,765
Current liabilities 1,518 803
Total liabilities 25,983 24,527
Shareholders' equity 68,283 51,238
Working capital 33,596 21,209
Management Discussion & Analysis and Conference Call
To review Vista's Form 10-Q for the Third Quarter 2009, including Management Discussion & Analysis, visit either www.sedar.com, www.sec.gov/edgarhp.htm or our website www.vistagold.com. A conference call with management to review Third Quarter 2009 financial results and corporate and project activities is scheduled on Wednesday, November 11, 2009 at 10:00 a.m. EST.
Toll-free in North America: 1-866-443-4188 International: 1-416-849-6196
This call will also be web-cast and can be accessed at the following web location:
http://www.snwebcastcenter.com/event/?event_id=631
This call will be archived and available at www.vistagold.com after November 11, 2009. Audio replay will be available for three weeks by calling in North America: 1-866-245-6755, passcode 574222.
If you are unable to access the audio or phone-in on the day of the conference call, please feel free to email questions, prior to the conference call, addressed to Connie Martinez, Manager - Investor Relations, (email:
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 undertaken programs to advance the Paredones Amarillos gold project, located in Baja California Sur, Mexico, including a definitive feasibility study, the purchase of long delivery equipment items, 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 expected late in the fourth quarter of 2009. Vista's other holdings include the Guadalupe de los Reyes gold project in Mexico, Yellow Pine gold project in Idaho, 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 future financial and operating results and estimates; 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 the application for the Change of Forest Land Use Permit 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 US 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.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Announces Update for Paredones Amarillos Gold Project
Vista Gold Corp. ("Vista" or the "Company") (TSX & NYSE Amex: VGZ) is pleased to provide an update on activities at the Paredones Amarillos gold project in Baja California Sur, Mexico. Receipt of the Temporary Occupation Permits ("TOP") was announced on October 28, 2009, and signals the commencement of a number of activities designed to advance the development of the project towards construction and the planned start of production in 2011. Once in production, the Paredones Amarillos gold project is expected to produce an estimated average of 143,000 ounces of gold per year during the first five years and an estimated 1.2 million ounces of gold over the estimated 9.3 year life of the mine.
Permitting
As previously announced, with the receipt of the TOP, the Company now has all the prerequisite documentation to re-apply for the Change of Forest Land Use Permit ("CFLUP") which is required before the Company can commence construction of the Paredones Amarillos gold project. The Company plans to file the application this week and estimates that the CFLUP will be granted prior to the end of the first quarter 2010.
Project Engineering
The Company is preparing a Request for Proposal to be sent to qualified and interested companies for the provision of Engineering, Procurement and Construction Management ("EPCM") services for the project. During the next 30-45 days, Vista expects to select the EPCM contractor and to commence the first phase of detailed engineering and design work, so that construction activities can start as soon as possible following receipt of the CFLUP.
Vista already owns most of the major equipment required for the process plant (mill), and a recent review indicates that other major project equipment (including mobile mining equipment) are expected to be available with reasonable delivery times. The expected construction period for the project is approximately 15 months.
Project Financing
Vista continues to advance efforts to secure appropriate financing for the Paredones Amarillos gold project's development including discussions with various qualified banks that may be interested in providing project loans. The process is expected to take three to five months with completion being targeted to coincide with the receipt of the CFLUP.
Community Relations
On November 4, 5 and 6, 2009, the Company's wholly-owned Mexican subsidiary, Minera Paredones Amarillos S.A. de C.V. ("MPA") which holds the Paredones Amarillos gold project, plans to hold a series of workshops in communities close to the project, including La Paz. The workshops are part of the Company's ongoing efforts to keep local residents, government officials and other stakeholders informed about the Paredones Amarillos gold project and the measures being taken by the Company to ensure that the Paredones Amarillos gold project will make a positive contribution to the community. These workshops are one of several programs developed by MPA in conjunction with the Mexican consulting group, C3 Consensus, in an effort to reduce public misconceptions, ensure that correct project information is disseminated and at the same time, to receive appropriate stakeholder input which may lead to project development improvements.
More Information about the Paredones Amarillos Gold Project
For more information about the Paredones Amarillos gold project, please see the technical report entitled "Feasibility Study Update, NI 43-101 Technical Report, Vista Gold Corp., Paredones Amarillos Gold Project, Baja California Sur, Mexico," dated September 1, 2009, prepared by SRK Consulting (U.S.), Inc. ("SRK") of Lakewood, Colorado. The final report is available on SEDAR at www.sedar.com.
Qualified Person
Terry Braun, P.E., Principal of SRK, an independent "qualified person" as defined by Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects, supervised the preparation of scientific and technical information contained in this press release.
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 late in 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 the timing and outcome of the application for the CFLUP application for the Paredones Amarillos gold project, anticipated plans and timing of commencement of construction, development and commencement of production at the Paredones Amarillos gold project; the timing, performance and results of feasibility studies including the timing and receipt of required land use, environmental and other permits for the Paredones Amarillos gold project; the estimated production and life of mine of the Paredones Amarillos gold project, plans, timing and outcome of project financing, the timing and outcome of detailed EPCM work, the timing and availability of project equipment, 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 gold prices, 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 CFLUP application 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.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez, +1-720-981-1185, for Vista Gold Corp.
Web Site: http://www.vistagold.com/
Vista Announces Receipt of Temporary Occupation Permits for Paredones Amarillos Gold Project
Vista Gold Corp. ("Vista" or the "Company") (TSX & NYSE Amex: VGZ) is pleased to announce that Minera Paredones Amarillos S.A. de C.V. ("MPA"), Vista's wholly-owned Mexican subsidiary, has received the Temporary Occupation Permits for the Paredones Amarillos gold project located in Baja California Sur, Mexico.
The Temporary Occupation Permits (one for each of the seven mining concessions that cover the area of the Paredones Amarillos gold project) formally grant MPA the right to use the surface land in the project area owned by the Mexican federal government. With the Temporary Occupation Permits received, the Company has all of the documents necessary to file its application for the Change of Forest Land Use Permit ("CFLUP") which is required before the Company can commence development of the Paredones Amarillos gold project. The Company intends to file the CFLUP application in the upcoming days.
Fred Earnest, Vista's President and Chief Operating Officer, stated, "We are very pleased to have received the Temporary Occupation Permits. This is a significant milestone in Vista's effort to become a mid-tier gold producer. Our advisors in Mexico City have worked tirelessly with many different agencies to achieve the approval of the Temporary Occupation Permits and we appreciate the support and assistance received from each of the agencies involved in the review and ultimate approval of these permits. With the anticipated filing of our CFLUP application expected in the upcoming days, we believe we will be on track to receive the CFLUP by the end of the first quarter of 2010 and anticipate being able to move forward with construction of the Paredones Amarillos gold project for estimated initial production in 2011."
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 late in 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 the timing and outcome of the application for the CFLUP application for the Paredones Amarillos gold project, anticipated plans and timing of commencement of construction and commencement of production at the Paredones Amarillos gold project; the timing, performance and results of feasibility studies including the timing and receipt of required land use, environmental and other permits for the Paredones Amarillos gold project; and 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 gold prices, 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 CFLUP application 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.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez, +1-720-981-1185, for Vista Gold Corp.
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Closing of Over-Allotment of Common Share Offering
Vista Gold Corp. ("Vista" or the "Company") (TSX & NYSE Amex: VGZ) is pleased to announce the closing of the sale of 1.32 million common shares, pursuant to the underwriters' exercise of the over-allotment option, which the Company granted in connection with its recently-closed public offering of common shares. Consistent with the public offering of common shares that closed on September 21, 2009, the 1.32 million common shares were sold to the underwriters at the public offering price of US$2.25 per common share. The over-allotment and the recently-closed public offering were made pursuant to the Company's shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") and a shelf prospectus filed with certain Canadian securities regulatory authorities. With the sale of the additional 1.32 million common shares to the underwriters, 10.12 million common shares in total have been sold in connection with the offering.
Proceeds to the Company from the offering to date, net of commissions and expenses, are approximately US$20.3 million, which includes net proceeds of approximately US$2.74 million from the sale of the 1.32 million common shares pursuant to the underwriters' exercise of the over-allotment option.
Vista intends to use the net proceeds from this offering (i) to fund drilling, exploration, and technical/engineering activities (including the preparation of a feasibility study) on its Mt. Todd gold project, (ii) to fund the engineering, design and other technical activities to advance its Paredones Amarillos gold project, (iii) to fund exploration activities and if warranted, drilling programs at its Guadalupe de los Reyes gold project and (iv) to fund acquisitions, and further development of acquired mineral properties, working capital requirements and/or for other general corporate purposes.
Dahlman Rose & Company, LLC and Wellington West Capital Markets Inc. acted as joint book-runners for the offering.
The offering was made by way of a registration statement, which has been declared effective by the SEC, a base shelf prospectus and a final prospectus supplement each of which has been filed with the SEC and each of the Canadian provinces of British Columbia, Alberta, Manitoba, Ontario and Newfoundland and Labrador. A copy of the final prospectus supplement incorporating the base shelf prospectus relating to the offering may be obtained by either contacting the underwriters, by accessing the SEC website, www.sec.gov, or by accessing the website maintained by the Canadian securities regulatory authorities, SEDAR, at www.sedar.com.
In the United States from: Dahlman Rose & Company, LLC Attn: Prospectus Dept. 142 West 57th Street 18th Floor New York, NY 10019 Phone: 212-702-4521 Fax: 212-920-2952 Email:This email address is being protected from spambots. You need JavaScript enabled to view it. In Canada from: Wellington West Capital Markets Inc. Attn: Scott Larin 145 King Street West, Suite 700 Toronto, Ontario M5H 1J8 Phone: 416-640-4893 Fax: 416-640-4946 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the final prospectus supplement, the base prospectus or the Company's shelf registration statement. A registration statement relating to the securities has been filed with the SEC and became effective April 30, 2009. A final prospectus supplement relating to the offering has been filed with the SEC. A base shelf prospectus has been filed with the securities regulatory authorities in certain provinces in Canada and a final prospectus supplement was filed with such regulatory authorities.
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. 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 items, 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, Yellow Pine gold project in Idaho, Awak Mas gold project in Indonesia, and the Long Valley gold project in California.
For further information, please contact: Vista Gold Corp. Attn: Greg Marlier 7961 Shaffer Parkway, Suite 5 Littleton, Colorado 80127 Phone: 720-981-1185 Fax: 720-981-1186 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
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 statements as to the use of proceeds. When used in this press release, the words "optimistic", "potential", "indicate", "expect", "intend", "hopes", "believe", "may", "will", "if" 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, the future use of proceeds, risks relating to cost increases for capital and operating costs including cost of power; risks relating to delays at Vista's projects; risks of shortages of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning 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 and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. 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.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Greg Marlier of Vista Gold Corp., +1-720-981-1185, fax,
+1-720-981-1186,
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Closing of Common Share Offering
Vista Gold Corp. ("Vista" or the "Company") (TSX & NYSE Amex: VGZ) is pleased to announce the closing of its previously announced public offering of common shares pursuant to the Company's shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") and a shelf prospectus filed with certain Canadian securities regulatory authorities. The Company sold 8.8 million common shares at a price of US$2.25 per common share. The Company has granted the underwriters a 30-day option to purchase up to 1.32 million additional common shares to cover over-allotments, if any.
Proceeds to the Company from the offering, net of commissions, fees and expenses, were approximately US$17.6 million (assuming the underwriters' over-allotment option is not exercised).
Vista intends to use the net proceeds from this offering (i) to fund drilling, exploration, and technical/engineering activities (including the preparation of a feasibility study) on its Mt. Todd gold project, (ii) to fund the engineering, design and other technical activities to advance its Paredones Amarillos gold project, (iii) to fund exploration activities and if warranted, drilling programs at its Guadalupe de los Reyes gold project and (iv) to fund acquisitions, and further development of acquired mineral properties, working capital requirements and/or for other general corporate purposes.
Dahlman Rose & Company, LLC and Wellington West Capital Markets Inc. acted as joint book-runners for the offering.
The offering was made by way of a registration statement, which has been declared effective by the SEC, a base shelf prospectus and a final prospectus supplement each of which has been filed with the SEC and each of the Canadian provinces of British Columbia, Alberta, Manitoba, Ontario and Newfoundland and Labrador. A copy of the final prospectus supplement incorporating the base shelf prospectus relating to the offering may be obtained by either contacting the underwriters, by accessing the SEC website, www.sec.gov, or by accessing the website maintained by the Canadian securities regulatory authorities, SEDAR, at www.sedar.com.
In the United States from: Dahlman Rose & Company, LLC Attn: Prospectus Dept. 142 West 57th Street 18th Floor New York, NY 10019 Phone: 212-702-4521 Fax: 212-920-2952 Email:This email address is being protected from spambots. You need JavaScript enabled to view it. In Canada from: Wellington West Capital Markets Inc. Attn: Scott Larin 145 King Street West, Suite 700 Toronto, Ontario M5H 1J8 Phone: 416-640-4893 Fax: 416-640-4946 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the final prospectus supplement, the base prospectus or the Company's shelf registration statement. A registration statement relating to the securities has been filed with the SEC and became effective April 30, 2009. A final prospectus supplement relating to the offering has been filed with the SEC. A base shelf prospectus has been filed with the securities regulatory authorities in certain provinces in Canada and a final prospectus supplement was filed with such regulatory authorities.
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. 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 items, 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, Yellow Pine gold project in Idaho, Awak Mas gold project in Indonesia, and the Long Valley gold project in California.
For further information, please contact: Vista Gold Corp. Attn: Greg Marlier 7961 Shaffer Parkway, Suite 5 Littleton, Colorado 80127 Phone: 720-981-1185 Fax: 720-981-1186 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
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 statements as to the use of proceeds. When used in this press release, the words "optimistic", "potential", "indicate", "expect", "intend", "hopes", "believe", "may", "will", "if" 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 market response to the offering, the net proceeds from the offering, the future use of proceeds, risks relating to cost increases for capital and operating costs including cost of power; risks relating to delays at Vista's projects; risks of shortages of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning 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 and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. 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.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Vista Gold Corp., Attn: Greg Marlier, +1-720-981-1185, Fax,
+1-720-981-1186,
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Pricing of Common Stock Offering
Vista Gold Corp ("Vista" or the "Company") (TSX & NYSE Amex: VGZ) is pleased to announce the pricing of its previously announced public offering of common stock pursuant to the Company's shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") and a shelf prospectus filed with certain Canadian securities regulatory authorities. The Company has agreed to increase the number of shares sold by 10 percent to 8.8 million shares at a price of US$2.25 per share of common stock. The Company has granted the underwriters a 30-day option to purchase up to 1.32 million additional shares of common stock to cover over-allotments, if any.
Proceeds to the Company from the offering, net of commissions and expenses, are expected to be approximately US$17.6 million (assuming the underwriters' over-allotment option is not exercised). The offering is expected to close on September 21, 2009.
Vista intends to use the net proceeds from this offering (i) to fund drilling, exploration, and technical/engineering activities (including the preparation of a feasibility study) on its Mt. Todd gold project, (ii) to fund the engineering, design and other technical activities to advance its Paredones Amarillos gold project, (iii) to fund exploration activities and if warranted, drilling programs at its Guadalupe de los Reyes gold project and (iv) to fund acquisitions, and further development of acquired mineral properties, working capital requirements and/or for other general corporate purposes.
Dahlman Rose & Company, LLC and Wellington West Capital Markets Inc. are acting as joint book-runners for the offering.
The offering is being made by way of a registration statement, which has been declared effective by the SEC, a base shelf prospectus and a final prospectus supplement each of which has been filed with the SEC and each of the Canadian provinces of British Columbia, Alberta, Manitoba, Ontario and Newfoundland and Labrador. A copy of the final prospectus supplement incorporating the base shelf prospectus relating to the offering may be obtained by either contacting the underwriters, by accessing the SEC website, www.sec.gov, or by accessing the website maintained by the Canadian securities regulatory authorities, SEDAR, at www.sedar.com.
In the United States from: Dahlman Rose & Company, LLC Attn: Prospectus Dept. 142 West 57th Street 18th Floor New York, NY 10019 Phone: 212-702-4521 Fax: 212-920-2952 Email:This email address is being protected from spambots. You need JavaScript enabled to view it. In Canada from: Wellington West Capital Markets Inc. Attn: Scott Larin 145 King Street West, Suite 700 Toronto, Ontario M5H 1J8 Phone: 416-640-4893 Fax: 416-640-4946 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the final prospectus supplement, the base prospectus or the Company's shelf registration statement. A registration statement relating to the securities has been filed with the SEC and became effective April 30, 2009. A final prospectus supplement relating to the offering has been filed with the SEC. A base shelf prospectus has been filed with the securities regulatory authorities in certain provinces in Canada and a final prospectus supplement was filed with such regulatory authorities.
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. 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 items, 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, Yellow Pine gold project in Idaho, Awak Mas gold project in Indonesia, and the Long Valley gold project in California.
For further information, please contact: Vista Gold Corp. Attn: Greg Marlier 7961 Shaffer Parkway, Suite 5 Littleton, Colorado 80127 Phone: 720-981-1185 Fax: 720-981-1186 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
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 anticipated closing of the offering, the expected net proceeds from the offering, and the anticipated use of proceeds. When used in this press release, the words "optimistic", "potential", "indicate", "expect", "intend", "hopes," "believe," "may," "will," "if" 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 market response to the offering, the net proceeds from the offering, the future use of proceeds, risks relating to cost increases for capital and operating costs including cost of power; risks relating to delays at Vista's projects; risks of shortages of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning 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 and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. 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.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Greg Marlier of Vista Gold Corp., +1-720-981-1185, Fax,
+1-720-981-1186,
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Common Stock Offering
Vista Gold Corp ("Vista" or the "Company") (TSX & NYSE Amex: VGZ) is pleased to announce that it intends to offer 8 million shares of its common stock pursuant to the Company's shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") and a prospectus supplement to its base shelf prospectus filed with certain Canadian securities regulatory authorities. The Company intends to grant the underwriters a 30-day option to purchase up to 1.2 million additional shares of common stock to cover over-allotments, if any.
Vista intends to use the net proceeds from this offering (i) to fund drilling, exploration, and technical/engineering activities (including the preparation of a feasibility study) on its Mt. Todd gold project, (ii) to fund the engineering, design and other technical activities to advance its Paredones Amarillos gold project, (iii) to fund exploration activities and if warranted, drilling programs at its Guadalupe de los Reyes gold project and (iv) to fund acquisitions, and further development of acquired mineral properties, working capital requirements and/or for other general corporate purposes.
Dahlman Rose & Company, LLC and Wellington West Capital Markets Inc. are acting as joint book-runners for the offering.
The offering is being made by way of a registration statement, which has been declared effective by the SEC, a base shelf prospectus and a prospectus supplement each of which has been filed with the SEC and each of the Provincial securities regulatory authorities in Canada, other than Quebec. A copy of the preliminary prospectus supplement incorporating the base shelf prospectus relating to the offering may be obtained by either contacting the underwriters, by accessing the SEC website, www.sec.gov, or by accessing the website maintained by the Canadian securities regulatory authorities, SEDAR, at www.sedar.com.
In the United States from: Dahlman Rose & Company, LLC Attn: Prospectus Dept. 142 West 57th Street 18th Floor New York, NY 10019 Phone: 212-702-4521 Fax: 212-920-2952 Email:This email address is being protected from spambots. You need JavaScript enabled to view it. In Canada from: Wellington West Capital Markets Inc. Attn: Scott Larin 145 King Street West, Suite 700 Phone: 416-640-4893 Fax: 416-640-4946 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the prospectus supplement, the prospectus or the Company's shelf registration statement. A registration statement relating to the securities has been filed with the SEC and became effective April 30, 2009. A preliminary prospectus supplement relating to the offering has been filed with the SEC. A shelf prospectus has been filed with the securities regulatory authorities in certain provinces in Canada and a preliminary prospectus supplement was filed with such regulatory authorities.
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. 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 items, 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, Yellow Pine gold project in Idaho, Awak Mas gold project in Indonesia, and the Long Valley gold project in California.
For further information, please contact: Vista Gold Corp. Attn: Greg Marlier 7961 Shaffer Parkway, Suite 5 Littleton, Colorado 80127 Phone: 720-981-1185 Fax: 720-981-1186 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
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 size of the announced offering, the number of common shares to be issued, and the anticipated use of proceeds. When used in this press release, the words "optimistic", "potential", "indicate", "expect", "intend", "hopes," "believe," "may," "will," "if" 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 market response to the offering, the pricing of the offering, the future use of proceeds, risks relating to cost increases for capital and operating costs including cost of power; risks relating to delays at Vista's projects; risks of shortages of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning 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 and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. 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.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Greg Marlier of Vista Gold Corp., +1-720-981-1185, fax,
+1-720-981-1186,
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Updated Mineral Resources for the Guadalupe de los Reyes Gold Project
Vista Gold Corp. ("Vista") (TSX & NYSE Amex: VGZ) announced today the updated mineral resources for the Guadalupe de los Reyes gold project in Sinaloa, Mexico.
In January 2008, Vista consolidated the Guadalupe de los Reyes District by acquiring the interests of Grandcru Resources Corporation in the district. (Please refer to our December 19, 2007, and January 24, 2008, press releases for details of the transaction.)
In July 2009, Vista retained Pincock, Allen & Holt ("PAH") of Lakewood, Colorado, to complete a mineral resource estimation for the district. The mineral resource estimate found in the following table has been adjusted to reflect material removed from old underground workings.
Guadalupe de los Reyes Project Mineral Resource Estimates
(0.50 g/t Cutoff)
------------------------------------------------------------------------
Contained
Metric Gold Grade Contained Silver Grade Silver
Tonnes (g/t) Gold Ounces (g/t) Ounces
------------------------------------------------------------------------
Indicated(1) 10,048,000 1.50 484,000 25.74 8,313,900
------------------------------------------------------------------------
Inferred(2) 4,888,000 2.02 316,800 59.98 9,425,500
------------------------------------------------------------------------
1. Cautionary Note to U.S. Investors concerning estimates of Indicated
Resources: This table uses the term "measured resources" and "indicated
resources". We advise U.S. investors that while this term is recognized
and required by Canadian regulations, the U.S. Securities and Exchange
Commission ("SEC") does not recognize it. The SEC normally only permits
issuers to report mineralization that does not constitute "reserves" as
in-place tonnage and grade without reference to unit measures. The
term "contained gold ounces" used in this table is not permitted under
the rules of the SEC. 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.
2. Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources: This table uses the term "inferred resources". We advise
U.S. investors that while this term is recognized and required by
Canadian regulations, the SEC 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. The
SEC normally only permits issuers to report mineralization that does
not constitute "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. U.S.
investors are cautioned not to assume that any part or all of an
inferred resource exists or is economically or legally minable.
The updated gold resource estimate was completed on August 12, 2009, by PAH, pursuant to Canadian National Instrument 43-101 ("NI 43-101"). This updated gold resource estimate was completed by or under the supervision of Mr. Leonel Lopez, C.P.G., an independent Qualified Person, (as defined in NI 43-101), utilizing standard industry software and resource estimation methodology. Mr. Lopez has reviewed and verified the technical and scientific information contained in this press release. For more information on the Guadalupe de los Reyes project and the updated mineral resource estimate, refer to the report entitled "Technical Report for the Guadalupe de los Reyes Gold-Silver Project, Sinaloa, Mexico" dated August 12, 2009, which has been filed on SEDAR simultaneously with this press release.
Since consolidating its position in the district, Vista has completed a data compilation program which has led Vista to its belief that the district's mineral potential has not been fully assessed. Frank Fenne, Vista's Vice President - Exploration commented, "Low-sulfidation epithermal systems like the one found at Guadalupe de los Reyes can form world-class deposits. The vein systems at Guadalupe de los Reyes aggregate over 8.5 km of strike length and historic workings on a small part of the system indicate over 400 meters of vertical continuity of mineralization. Previous exploration in the Guadalupe de los Reyes District has focused on shallow, open-pitable targets. The underground potential has never been explored by modern methods and we believe there is excellent exploration potential for high-grade underground deposits."
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.
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 estimates of mineral resources for the Guadalupe de los Reyes gold project, exploration potential for open-pit and underground gold resources for the Guadalupe de los Reyes gold project , the continuity and strike length of ore for the Guadalupe de los Reyes gold project, , ,the timing and outcome of a Mt. Todd pre-feasibility study, estimates of future operating, annual production and financial performance of the Mt. Todd gold project,, uncertainty of future gold prices, future U.S.-to-Australian dollar exchange rates, , favorable effects of Mt. Todd project economics, Vista's ability to add value in a cost-effective manner, plans for the construction and development of the Paredones Amarillos gold project, and the possibility of production at the Paredones Amarillos gold project and other such matters are forward-looking statements and forward-looking information. When used in this press release, the words "potential," "target," "estimate," "indicate," "expect," "intend," "hopes," "believe," "may," "will," "if" 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 resource estimate results and assumptions and methodology on which such results are based; risks relating to completing metallurgical testing and scheduling for pre-feasibility studies; risks relating to delays at the Mt. Todd gold project; risks of shortages of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; risks relating to permitting, 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. 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 and the updated resource estimate are not comparable to similar information disclosed by U.S. companies. This press release and the updated resource estimate 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
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Announces Paredones Amarillos Gold Project Feasibility Study Update Results and Provides Project Update
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 127,400 ounces per year
Production (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 24.7% pre-tax 37.8% pre-tax
16.6% after-tax 19.6% after-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
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Positive Metallurgical Test Results for the Mt. Todd Project, Northern Territory, Australia, and Appointment of Thomas DeMull as Senior Vice President, Project Development
Vista Gold Corp. ("Vista") (TSX & NYSE Amex: VGZ) announced today the updated results of metallurgical tests completed for the Mt. Todd gold project, Northern Territory, Australia, and the appointment of Thomas DeMull as Senior Vice President, Project Development.
As part of the on-going engineering studies on the development of the Mt. Todd gold project, Resource Development, Inc. ("RDi") of Wheat Ridge, Colorado, JKTech Pty Ltd ("JKTech") of Queensland, Australia, and Ausenco Services Pty Ltd ("Ausenco") of Perth, Australia, have recently completed additional successful metallurgical test programs and simulations. The metallurgical tests were conducted on core from the 2008 Mt. Todd drilling program that is believed to be representative of approximately 80% of the ore contained in the pit shape identified in Vista's May 2009 Preliminary Economic Assessment (please refer to Vista's press release dated June 4, 2009).
The RDi test work confirms a gold recovery of 82% in a whole ore leach circuit with ore that has been ground to a relatively coarse size of 80% passing 100 mesh. JKTech completed testing to determine ore grinding characteristics for both conventional crushing/grinding as well as crushing with high pressure grinding rolls ("HPGR") followed by grinding. The results of the JKTech testing together with other information were used by Ausenco in a comminution circuit simulation. The work by Ausenco confirmed earlier test work completed by Vista, and indicated energy and operating cost savings may be realized by utilizing HPGR technology for processing the Mt. Todd ore. The results of these studies and simulations will be incorporated into the Preliminary Feasibility Study(2) ("PFS") which Vista expects to complete in the fourth quarter of this year.
Commenting on the test results, Fred Earnest, Vista's President and Chief Operating Officer, stated, "The Mt. Todd test program continues to advance, confirming the selection of process technology and developing input parameters for the PFS. The PFS is examining the best approach to develop the estimated 4.25 million ounces of measured and indicated gold resource (147.6 million tonnes at 0.93 g/t)(1,2) and is targeting a potential mining operation with an estimated annual production of approximately 250,000 ounces of gold per year. We are also nearing the completion of a review of exploration data and our initial field programs on the extensive exploration leases, which we will use to design our next exploration program. We believe further drilling on the Batman deposit and on the surrounding exploration leases will define a significantly larger gold resource."
Additionally, on September 10, 2009, Thomas DeMull will assume the position of Senior Vice President, Project Development. Mr. DeMull holds a MS degree in Metallurgical Engineering from Michigan Technology University and has over 30 years of experience in the development and operation of gold and copper mines. He has worked in North and South America and the Asian-Pacific. Over the past 25 years, Tom has worked on 10 new mine projects, six of which became operating mines, including the Sleeper mine in Nevada and Newmont's Batu Hijau mine in Indonesia. Most recently, Mr. DeMull held the position of President and CEO of Rocky Mountain Resources Corp.
Fred Earnest, Vista's President and Chief Operating Officer, stated, "We are very pleased to have an executive with Tom's qualifications join our team. We believe his talents and experience will allow him to make immediate contributions to our Mt. Todd and Paredones Amarillos development projects."
Except as described above, Deepak Malhotra, PhD, is the independent "qualified person" within the meaning of NI 43-101 who supervised the preparation of the scientific and technical information that forms the basis of this press release.
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, Yellow Pine gold project in Idaho, Awak Mas gold project in Indonesia, and the Long Valley gold project in California.
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 conversion of inferred resources to measured and indicated resources, the potential for gold resources in the Batman deposit and other targets within the Mt. Todd gold project, the waste-to-ore ratio at Mt. Todd, the successful completion of a metallurgical testing program at Mt. Todd, the representativeness of metallurgical results for the Mt. Todd gold project, the timing and outcome of a Mt. Todd pre-feasibility study, estimates of future operating, annual production and financial performance of the Mt. Todd gold project, the targeted annual production of the Mt. Todd gold project, uncertainty of mine planning criteria and design, future gold prices, future U.S.-to-Australian dollar exchange rates, the improved efficiencies of high pressure grinding roll technology, favorable effects of Mt. Todd project economics, Vista's ability to add value in a cost-effective manner, plans for the construction and development of the Paredones Amarillos gold project, and the possibility of production at the Paredones Amarillos gold project and other such matters are forward-looking statements and forward-looking information. When used in this press release, the words "potential," "target," "estimate," "indicate," "expect," "intend," "hopes," "believe," "may," "will," "if" 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 resource estimate results estimates on which such results are based; uncertainty of mine planning criteria and design including uncertainty related to targeted annual production rates of the Mt. Todd gold project, risks relating to completing metallurgical testing and scheduling for pre-feasibility studies; risks relating to cost increases for capital and operating costs including cost of power; risks relating to delays at the Mt. Todd gold project; risks of shortages of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; risks relating to permitting, uncertainties concerning 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 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.
(1) For more information on the Mt. Todd gold project, please see Vista's technical report(2) entitled "Mt. Todd Gold Project Updated Preliminary Economic Assessment Report, Northern Territory, Australia" dated June 11, 2009 available on SEDAR at www.sedar.com. Mr. John Rozelle, is the independent "qualified person" within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") for the mineral resource estimate of the Mt. Todd gold project included in this press release.
(2) Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources: This press release and the PFS and technical report referenced in this press release use the terms "Measured Resources", "Indicated Resources" and "Measured & Indicated Resources." We advise U.S. investors that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission ("SEC") Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. The PFS and technical report referenced in this press release use the term "inferred resources". We advise U.S. investors that while this term is defined in and required by Canadian regulations, this term is not a defined term under SEC Industry Guide 7 and is normally not permitted to be used in reports and registration statements filed with 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 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. 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. 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
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Second Quarter Financial Results and Conference Call With Management
Vista Gold Corp. (TSX & NYSE Amex: VGZ) ("Vista" or the "Corporation") announced today its financial results for the quarter and six months ended June 30, 2009, as filed on August 7, 2009, with the US Securities and Exchange Commission and the relevant securities regulatory authorities in Canada in the Corporation's Quarterly Report on Form 10-Q, and announces a management quarterly conference call scheduled for Tuesday, August 11, 2009, at 1:00 P.M. MDT.
Results from Operations
Our consolidated net earnings for the three-month period ended June 30, 2009, was US$3.9 million or US$0.11 per share compared to a consolidated net loss of US$2.0 million or US$0.06 per share for the same period in 2008. Our consolidated net earnings for the six-month period ended June 30, 2009, was US$2.0 million or US$0.06 per share compared to a consolidated net loss of US$4.2 million or US$0.12 per share for the same period in 2008. For both the three- and six-month periods ended June 30, 2009, the increases in the consolidated net earnings of US$5.9 million and US$6.2 million from the respective prior periods are primarily due to a gain on disposal of marketable securities of US$6.8 million. The gain was the result of the sale of our Allied Nevada Gold Corp. ("Allied") shares which we retained in connection with the transaction that resulted in the formation of Allied and the transfer of Vista's Nevada properties to Allied. This transaction resulted in an exchange where the Corporation's shareholders received one new Vista common share and 0.794 Allied common share for each old Vista share held. This gain has been partially offset by an increase in the future income tax expense for both the three- and six-month periods of US$1.2 million and US$0.7 million.
Exploration, property evaluation and holding costs
Exploration, property evaluation and holding costs were US$268,000 for the three-month period ended June 30, 2009 and US$601,000 for the six-month period ended June 30, 2009, as compared with US$252,000 and US$497,000 for the same periods, respectively, in 2008. For both the three-month and six-month periods ended June 30, 2009, there were no significant variances as we continue to move our projects towards development decisions.
Corporate administration and investor relations
Corporate administration and investor relations costs decreased to US$1.0 million during the three-month period ended June 30, 2009, compared with US$1.3 million for the same period in 2008. The decrease of US$0.3 million from the respective prior period is primarily due to the following:
Stock-based compensation expense decreased by US$194,000 for the three-month period ended June 30, 2009. This decrease is primarily due to a decrease in the number of options granted during the prior year and vesting over time as well as an increase in the stock-based compensation amount being capitalized as mineral properties.
Legal costs decreased by US$75,000 for the six-month period ended June 30, 2009.
Corporate administration and investor relations costs decreased to US$2.0 million for the six-month period ended June 30, 2009, compared with US$2.5 million for the same period in 2008. The decrease of US$554,000 from the respective prior period is primarily due to the following:
Stock-based compensation expense decreased by US$364,000 for the six-month period ended June 30, 2009. This decrease is primarily due to a decrease in the number of options granted during the prior year and vesting over time as well as an increase in the stock-based compensation amount being capitalized as mineral properties.
Securities and compliance fees expense decreased by US$120,000 for the six-month period ended June 30, 2009. Audit, tax and Sarbanes-Oxley compliance fees decreased by US$53,000 for the six-month period ended June 30, 2009 as we work with our auditors and outside consultants to reduce these fees.
Interest expense
Interest expense of US$584,000 during the three-month period ended June 30, 2009, was approximately equal to US$585,000 for the same period in 2008. Interest expense increased to US$1.2 million for the six-month period ended June 30, 2009, as compared with US$769,000 for the same period in 2008. This increase is because the senior secured convertible notes (the "Notes") were issued on March 4, 2008, and therefore only 118 days of interest were recorded for the 2008 period. For the three-month period ended June 30, 2009, US$265,000 is attributable to the accretion of the debt discount and US$319,000 is attributable to interest expense. For the six-month period ended June 30, 2009, US$524,000 is attributable to the accretion of the debt discount and US$639,000 is attributable to interest expense. These amounts are approximately 43% of the full interest expense associated with the issuance of the Notes. We capitalized the remaining 57% as additions to mineral properties in accordance with SFAS No. 34 and our accounting policy.
Other income and expense Gain on disposal of marketable securities
For the three-month period ended June 30, 2009, we realized a gain of US$6.8 million on the disposal of marketable securities compared to a loss on the disposal of marketable securities of US$88,000 for the same period in 2008. The gain for the three-month period in 2009 resulted from the sale of securities that had a book value of US$2.2 million and the loss for the same period in 2008 resulted from the sale of securities that had a book value of US$120,000.
For the six-month period ended June 30, 2009, we realized a gain of US$6.8 million on the disposal of marketable securities as compared to a loss on the disposal of marketable securities of US$67,000 for the same period in 2008. The gain for the six-month period in 2009 resulted from the sale of securities that had a book value of US$2.2 million and the loss for the same period in 2008 resulted from the sale of securities that had a book value of US$157,000.
For both the three- and six-month periods ended June 30, 2009, the gains were mostly the result of our sale on April 3, 2009, of all 1,529,848 common shares of Allied Nevada Gold Corp. we held for US$9.0 million. These shares had a book value of US$2.2 million.
At June 30, 2009, we held marketable securities available for sale with a quoted market value of US$628,000. We purchased the securities for investing purposes with the intent to hold the securities until such time it would be advantageous to sell the securities at a gain. Although there can be no reasonable assurance that a gain will be realized from the sale of the securities, we monitor the market status of the securities consistently in order to mitigate the risk of loss on the investment.
During the three-month period ended June 30, 2009, the future income tax expense was US$989,000 compared to a future income tax benefit of US$179,000 for the 2008 period. During the six-month period ended June 30, 2009, the future income tax expense was US$781,000 compared with US$93,000 for the same period in 2008. For both the three- and six-month periods ended June 30, 2009, the increase in the non-cash future income tax expense offsets non-cash tax benefits that were recorded in previous years since it has been determined there will be no tax liability on the gain realized by the sale of the Allied Nevada shares.
Financial Position, Liquidity and Capital Resources Cash used in operations
Net cash used in operating activities was US$3.0 million for the three-month period ended June 30, 2009, compared to US$2.0 million for the same period in 2008. The increase of US$1.0 million is mostly the result of an increase of US$658,000 in the amount of interest paid on the Notes. The Notes were issued on March 4, 2008 and therefore only 72 days of interest had accrued as of June 15, 2008. Also contributing to the increase was an increase in cash used for accounts payable, accrued liabilities and other of US$454,000, which was offset by an increase in cash provided by accounts receivable of US$118,000.
Net cash used in operating activities was US$4.2 million for the six-month period ended June 30, 2009, compared to US$3.3 million for the same period in 2008. Similar to the three-month period ended June 30, 2009, the increase of US$946,000 is mostly the result of the increase in interest paid of US$658,000, and an increase in cash used for accounts payable, accrued liabilities and other of US$349,000, which has been offset by an increase in cash provided by accounts receivable of US$130,000.
Investing activities
Net cash provided by investing activities increased to US$8.4 million for the three-month period ended June 30, 2009, as compared to net cash used in investing activities of US$3.2 million for the same period in 2008. The increase in cash provided by investing activities of US$11.6 million is due to the following:
An increase in the proceeds from the sale of marketable securities of US$9.0 million. On April 3, 2009, we sold all 1,529,848 common shares of Allied Nevada Gold Corp. we held for US$9.0 million.
An increase in the proceeds received upon the disposal of mineral property. In June 2009, we sold most of the remaining patented mining claims in Colorado for US$188,000. There were no similar transactions during the 2008 period.
A decrease in cash used for additions to mineral properties of US$1.8 million. During the 2008 period we undertook a drilling program at the Mt. Todd gold mine and were in the process of completing a feasibility study for the Paredones Amarillos gold project. These projects were completed during 2008.
A decrease in short-term loans made of US$350,000. In connection with the sale of our Amayapampa gold project in April 2008, we loaned to Republic US$350,000 to cover ongoing expenses at the Amayapampa gold project.
Net cash provided by investing activities increased to US$7.3 million for the six-month period ended June 30, 2009, as compared to net cash used in investing activities of US$21.3 million for the same period in 2008. The increase in cash provided by investing activities of US$28.6 million is mostly the result of the same items that increased cash for the three-month period as well as the following:
A decrease in the additions to property, plant and equipment of US$16.3 million. During 2008 we completed a brokered private placement of US$30.0 million principal amount of senior secured convertible notes (the "Notes") and we have used US$16.0 million of the proceeds towards the purchase of gold processing equipment to be used at our Paredones Amarillos gold project, which included the costs of relocating the equipment to Edmonton, Alberta, Canada. There was no similar purchase during the six-month period ended June 30, 2009.
A decrease in the acquisition of mineral property of US$452,000. On January 24, 2008, we completed the acquisition of interests in various mineral properties adjacent to our Guadalupe de los Reyes gold project in Mexico. The consideration paid by Vista for the acquisition of these interests included cash payments totaling US$452,000 and the issuance of a total of 213,503 common shares of Vista (with an aggregate fair value of US$1.0 million) to various parties. There was no similar purchase during the six-month period ended June 30, 2009.
Financing activities
There was no cash provided by or used in financing activities for the three-month period ended June 30, 2009. Net cash used by financing activities was US$144,000 for the three-month period ended June 30, 2008. The cash used in financing activities for the 2008 period was the result of additional fees paid on the issuance of the Notes.
There was no cash provided by or used in financing activities for the six-month period ended June 30, 2009. Net cash provided by financing activities was US$31.4 million for the six-month period ended June 30, 2008. During the six-month period ended June 30, 2008, we completed a brokered private placement, in which we offered and sold US$30.0 million principal amount of the Notes. Proceeds to Vista after legal and other fees were US$28.4 million. Also, during the six-month period ended June 30, 2008, warrants exercised produced cash proceeds of US$2.9 million and stock option exercises produced cash proceeds of US$69,000.
Liquidity and Capital Resources
At June 30, 2009, our total assets were US$74.6 million compared to US$75.8 million at December 31, 2008, representing a decrease of US$1.2 million. At June 30, 2009, we had working capital of US$17.1 million compared to US$21.2 million at December 31, 2008, representing a decrease of US$4.1 million. This decrease relates primarily to a reduction in marketable securities balances due to the sale of the Allied Nevada Gold Corp. shares in April 2009, which is offset by an increase in our cash balance from year end.
The principal component of working capital at both June 30, 2009 and December 31, 2008, is cash and cash equivalents of US$16.3 million and US$13.3 million, respectively. Other components include marketable securities (June 30, 2009 -- US$628,000; December 31, 2008 -- US$8.2 million) and other liquid assets (June 30, 2009 - US$723,000; December 31, 2008 - US$593,000).
As a result of the delay in the issuance of the Change of Land Use Permit at the Paredones Amarillos gold project and the current uncertainty in the resource and financial markets, management has adopted a revised plan and budget for the year 2009. The plan continues those programs necessary to expedite the development of the Paredones Amarillos gold project, while minimizing expenditures in other areas. We expect that in the event that financing for the Paredones Amarillos gold project is not available on acceptable terms in 2009, Vista has sufficient working capital to fund its planned operations at least through the end of 2010, without additional financing. We will continue to examine potential funding alternatives for the project, which may include project financing, debt financing or equity financing.
On April 17, 2009, we announced that we filed a preliminary short form base shelf prospectus in Canada with the securities regulatory authorities in each province and territory (other than Quebec) and a corresponding shelf registration statement in the United States with the Securities and Exchange Commission ("SEC"). On April 27, 2009, we announced that we filed a final short form base shelf prospectus in each province and territory in Canada (other than Quebec) and an amended Form S-3 with the SEC. The Form S-3 was declared effective on April 30, 2009.
The selected financial data including the results of operations for the three-month and six-month periods ended June 30, 2009 compared to the 2008 periods, and the financial positions as at June 30, 2009 compared to December 31, 2008, is summarized in the following table:
Selected Financial Data Three Months Six Months
Ended June 30, Ended June 30,
2009 2008 2009 2008
U.S. $000's, except loss
per share
Results of operations
Net earnings/(loss) $3,890 (2,048) $2,010 $(4,171)
Basic and diluted earnings/(loss)
per share 0.11 (0.06) 0.06 (0.12)
Net cash used in operations (3,043) (2,072) (4,225) (3,279)
Net cash provided/(used)
in investing activities 8,361 (3,195) 7,259 (21,308)
Net cash provided by
financing activities - (144) - 31,400
Financial position June 30, December 31,
2009 2008
Current assets $17,651 $22,012
Total assets 74,589 75,765
Current liabilities 514 803
Total liabilities 25,460 24,527
Shareholders' equity 49,129 51,238
Working capital 17,137 21,209
Management Conference Call
To review Vista's Quarterly Report on Form 10-Q for the fiscal quarter ending June 30, 2009, including our Management Discussion & Analysis, visit either www.sedar.com, www.sec.gov or www.vistagold.com. A conference call with management to review our financial results for the quarter ended June 30, 2009 and corporate and project activities is scheduled on Tuesday, August 11, 2009, at 1:00 p.m. MDT.
Toll-free in North America: 1-866-782-8903 International: 1-647-426-1845
This call will also be web-cast and can be accessed at the following web location:
http://www.snwebcastcenter.com/event/?event_id=516
This call will be archived and available at www.vistagold.com after August 11, 2009. Audio replay will be available for three weeks by calling in North America: 1-866-245-6755, passcode 188727.
If you are unable to access the audio or phone-in on the day of the conference call, please feel free to email questions to Connie Martinez, Manager - Investor Relations, (email:
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 undertaken programs to advance the Paredones Amarillos gold project, located in Baja California Sur, Mexico, including a definitive feasibility study, the purchase of long delivery equipment items, 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, Yellow Pine gold project in Idaho, Awak Mas gold project in Indonesia, and the Long Valley gold project in California.
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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 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 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 and for the new Change of Land Use Permit 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 Temporary Occupation Permit and the new Change of Land Use Permit 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.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Announces Confirmatory Drilling Program at Paredones Amarillos Gold Project and Update on Permitting Progress
Vista Gold Corp. (TSX & NYSE Amex: VGZ) ("Vista" or the "Company") announced today that it will be initiating a diamond drilling program at the Paredones Amarillos gold project, located in Baja California Sur, Mexico. The program of diamond drill holes is designed to obtain samples to confirm process plant design criteria and provide additional validation of the mineral reserve model used for the feasibility study completed in September 2008 and announced in a press release dated September 8, 2008. Vista received the final authorization to proceed with the drilling program on Friday, July 31, 2009, and plans on mobilizing the drilling contractor within two weeks. The Company expects to complete the drilling by mid-October and complete the evaluation of the results later in the fourth quarter.
Vista's advisors and management have been working with Mexican authorities to expedite the permitting process at the Paredones Amarillos gold project. Vista's advisors have informed management that the Company's application for the Temporary Occupation Permit ("TOP") for the use of the federal land which overlies the Paredones Amarillos deposit is in the final review stages and that the application process continues to advance favorably. Receipt of the TOP is a pre-requisite for filing an application for the Change of Land Use Permit ("CUSF") which will enable the Company to commence development of Paredones Amarillos. The Company has already prepared the CUSF application and obtained the environmental permit necessary to submit the application. The Company intends to submit the CUSF application as soon as the TOP is received.
Fred Earnest, the Company's President and COO, said, "Approval of the drilling program is a positive sign and we are hopeful that the final stages of the Paredones Amarillos permitting process will now move more rapidly. We expect that the receipt of the TOP and the results of the drilling program will enable us to commence detailed engineering and refurbishment of the milling equipment we purchased in April 2008, as well as advance project financing efforts. We are currently in the final stages of updating the capital and operating costs and project economics for the development of the Paredones Amarillos gold project and plan to release the results shortly."
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 undertaken programs to advance the Paredones Amarillos gold project, located in Baja California Sur, Mexico, including a definitive feasibility study, the purchase of long delivery equipment items, 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, Yellow Pine gold project in Idaho, 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 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 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 TOP and for the new 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.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Board Approval for Preparation of a Pre-Feasibility Study on its Mt. Todd Gold Project
Vista Gold Corp. ("Vista") (TSX & NYSE Amex Equities: VGZ) is pleased to announce that following a review of the results of the recently completed Preliminary Economic Assessment ("PEA"), the Board has approved the expenditure of funds for the preparation of a Preliminary Feasibility Study ("PFS") on its Mt. Todd gold project. Vista has awarded a contract to Tetra Tech Inc. of Golden, Colorado, to manage and prepare the PFS in accordance with Canadian National Instrument 43-101-Standards of Disclosure for Mineral Projects ("NI 43-101"). The contract for the process and infrastructure engineering portion of the PFS has been awarded to Ausenco Limited of Queensland, Australia. In addition, Resource Development inc. of Denver, Colorado, will continue to supervise metallurgical testing and act as metallurgical consultant.
The PFS will be based on the base case scenario presented in the PEA, except that in accordance with NI 43-101, the PFS will not include inferred resources. The base case final pit, using a break-even gold price of US$600 per ounce was estimated to contain 147.6 million tonnes of measured and indicated resources(1) with an average grade of 0.90 grams gold per tonne, containing 4.25 million ounces of gold. The goal of the PFS is to refine and optimize these estimates to determine the potential economics of the proposed operation. The PEA reported an estimated mine life of 15.2 years with total estimated gold production of 3.7 million ounces resulting in estimated pre-tax net cash flow of US$646.7 million at a US$750 per ounce gold price. At the same gold price the pre-tax NPV8 (net present value with an 8% discount rate) was estimated to be US$232.9 million and the internal rate of return was estimated to be 21.6%. Pre-production capital was estimated to be US$323.1 million. Cash operating costs were estimated to be US$453 per ounce. The PEA is preliminary in nature and includes inferred mineral resources, see Cautionary Notes 2 and 3.
Fred Earnest, President and COO of Vista, stated, "It was a logical decision to spend the approximate US$1 million to complete the PFS, which management believes will enable it to confirm the economic and technical feasibility of the Mt. Todd gold project. If the economics in the PEA are confirmed by the PFS, then we expect that most of the measured and indicated resources(1) estimated in the base case pit, as reported in the PEA, will be able to be reclassified as proven and probable reserves(4). The PEA reflects the results of two years of work that has more than doubled the estimated gold resources at our Mt. Todd gold project and has resolved satisfactorily what Vista believes are the most important processing concerns left over from previous operations. While the PEA used a gold price of US$750 per ounce (three-year trailing average), the sensitivity analysis indicates an internal rate of return of 37.7% at US$950 per ounce gold price and a pre-tax NPV8 of US$601.7 million. The preparation of the PFS and the potential estimation of proven and probable reserves(4) is only the first step. We believe the Mt. Todd property has the potential to host a larger gold resource."
Vista is currently developing plans to undertake development drilling in the Batman Pit area to convert inferred resources(2) to indicated resources or measured resources(1) and to undertake exploration drilling on the mining and exploration licenses at Mt. Todd.
The PEA was prepared under the direction of Mr. John Rozelle, an independent qualified person under NI 43-101. The results of the PEA are outlined in a NI 43-101 technical report entitled "Mt. Todd Gold Project Updated Preliminary Economic Assessment Report, Northern Territory, Australia" and is dated June 11, 2009. The PEA is available on SEDAR at www.sedar.com.
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. In addition to the Mt. Todd gold project discussed above, Vista has undertaken programs to advance the Paredones Amarillos gold project, located in Baja California Sur, Mexico, including a definitive feasibility study, the purchase of long delivery equipment items, and the purchase of land for the processing facilities, related infrastructure and the desalination plant. Vista's other holdings include the Guadalupe de los Reyes gold project in Mexico, Yellow Pine gold project in Idaho, Awak Mas gold project in Indonesia, and the Long Valley gold project in California.
1) Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources: This press release uses the terms "measured resources", "indicated resources" and "measured & indicated resources." We advise U.S. investors that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission ("SEC") Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. 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. 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.
2) Cautionary Note to U.S. Investors concerning estimates of Inferred Resources: This press release uses the term "inferred resources". We advise U.S. investors that while this term is defined in and required by Canadian regulations, this term is not a defined term under SEC Industry Guide 7 and is normally not permitted to be used in reports and registration statements filed with 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 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. 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. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.
3) Cautionary Note concerning economic analysis that include Inferred Resources: Mineral resources that are not mineral reserves do not have demonstrated economic viability. This PEA is preliminary in nature and it includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
4) Cautionary Note to U.S. Investors concerning estimates of Reserves: This press release uses the term "mineral reserve". We advise U.S. investors that while this term is defined in and required by Canadian regulations, such definitions differ from the definitions in the SEC Industry Guide. Under 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 the primary environmental analysis or report must be filed with the appropriate governmental authority.
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 economic analysis, estimates of mineral resources, the conversion of mineral resources to mineral reserves, life of mine estimates, the potential for gold resources in the Batman deposit and other targets within the Mt. Todd gold project, the preparation of the PFS, future gold prices, the satisfactory resolution of processing concerns at Mt. Todd, favorable effects of Mt. Todd project economics, the estimated operating and capital costs and the cash flow analysis and sensitivity analysis in the PEA, and other such matters are forward-looking statements and forward-looking information. 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 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 resource estimates, estimates of results based on such resource estimates; risks relating to completing metallurgical testing; risks relating to cost increases for capital and operating costs; risks relating to delays at the Mt. Todd Project; risks related to 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; 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 under the headings "Uncertainty of Forward-Looking Statements" and "Risk Factors" in Vista's latest Annual Report on Form 10-K as filed on March 13, 2009, as amended April 16, 2009, and Quarterly Report on Form 10-Q, as filed May 6, 2009, and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. 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.
Without limiting the foregoing, this press release uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosures an issuer makes of scientific and technical information concerning mineral projects. All mineral resource estimates contained in this press release, including the terms "measured mineral resources," "indicated mineral resources" and "inferred mineral resources", have been prepared in accordance with NI 43-101, and these standards differ significantly from the requirements of the SEC. The resource information contained in this press release is not comparable to similar information disclosed by U.S. companies. See the Cautionary Notes to U.S. Investors above.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Results of a Preliminary Economic Assessment and Increases Estimated Measured and Indicated Resources by 12.8% at Its Mt. Todd Gold Project, Northern Territory, Australia
Vista Gold Corp. ("Vista") (TSX & NYSE Amex Equities: VGZ) is pleased to announce the results of a Preliminary Economic Assessment ("PEA") for the Batman deposit at the Mt. Todd gold project in Northern Territory, Australia. The PEA reflects the technical studies which Vista has undertaken since the issuance of the initial PEA on December 29, 2006, including over 18,000 meters of diamond drilling, a two-year metallurgical program which included crushing and grinding, flotation and leach testwork, mine design and various preliminary engineering studies and cost estimates. The PEA was prepared by TetraTech Inc. of Golden, Colorado, under the direction of Mr. John Rozelle, an independent qualified person under Canadian National Instrument 43-101 ("NI 43-101").
Three potential operating scenarios were evaluated using a gold price of $750 per ounce (three year running average), an exchange rate of US$1 = A$1.35 and first quarter 2009 costs. The results of the PEA indicate that development of the base case alternative would have an estimated cash cost of $453 per ounce and a pre-tax Internal Rate of Return ("IRR") of 21.6%. The total gold mined over the 15.2 year mine life is estimated to be 4,526,000 ounces, with an estimated annual production of 245,500 ounces (with average production over the first three years of 296,700 ounces). The PEA estimated that an economic gold cut-off grade of approximately 0.4 grams gold per tonne should be employed which results in a 12.8% increase (579,000 ounces) in Measured and Indicated Resources(1).
Fred Earnest, President and COO of Vista, stated, "The results of the PEA are very encouraging and follow two years of successful exploration programs and a comprehensive metallurgical test program. The Mt. Todd project has grown considerably since our acquisition of the project and we are confident that there is potential for continued substantial growth in resources. The results of the PEA are positive with an IRR of 21.6% at long-term gold prices of US$750 per ounce and an IRR of 37.7% at a US$950 gold price. We plan to advance the project as a matter of priority and are progressing towards the completion of the pre-feasibility study which we anticipate will enable the estimation of Mineral Reserves(4). We are also hopeful that the results of the next drilling program will convert most of the estimated Inferred Resources(2) at Mt. Todd to Measured and Indicated Resources(1) within the Base Case pit. To date we have focused nearly all of our energy on the Batman deposit. Under the direction of Frank Fenne (VP Exploration) and Peter Harris (Mt. Todd Exploration Manager), we are evaluating other targets, which we plan to drill during the next 12 months on the Mining Licenses ("ML's") and within the extensive area surrounding the ML's covered by our Exploration Licenses. We believe that we have a world-class gold deposit at Mt. Todd."
The PEA evaluated three operating scenarios. The parameters and pre-tax results are summarized in the following table.
LG Pit Resources Cut-off Internal Net Cash NPV8 @
Shell used in the Grade Rate of Flow US$750
(US$/oz Evaluation (grams Return (US$000's) per
Au) (1)(2) gold @ US$750 @ US$750 ounce
per per ounce per Gold(3)
tonne) Gold(3) ounce
Gold(3)
Base Case 600 Measured,
Indicated &
Inferred 0.42 21.6% 646,682 232,894
Case 2 550 Measured &
Indicated 0.58 23.1% 485,697 211,916
Case 3 750 Measured,
Indicated &
Inferred 0.34 20.4% 815,944 302,153
Notes: The Lerchs-Grossman economic pit shells formed the basis for the final pit designs which incorporated pit wall smoothing and ramps. NPV(8) is the pre-tax net present value calculated with an 8% discount rate. The IRR is calculated on a pre-tax basis.
On January 26, 2009, Vista announced a new mineral resource estimate that incorporated the results of the 2008 drilling program. The resource estimate report can be found on SEDAR at www.sedar.com, entitled "MT. TODD GOLD PROJECT, Gold Resource Update, Northern Territory, Australia" dated February 27, 2009. The resource estimate was reported assuming a gold cut-off grade of 0.50 grams per gold tonne, slightly higher than the PEA report's economic gold cut-off grade of approximately 0.4 grams per gold tonne. The resource estimate report represents an increase in estimated Measured Resources(1) of 119,000 ounces of gold and an increase in Indicated Resources(1) of 460,000 ounces of gold resulting in a combined estimated increase in Measured and Indicated Resources(1) of 579,000 ounces of gold at a cutoff grade of 0.40 grams per tonne (0.015 ounces of gold per ton). The updated gold mineral resource estimate for the Batman deposit as of January 23, 2009, assuming a cutoff grade of 0.40 grams of gold per tonne is set out below.
Resource Metric Average Grade Short Tons Average Grade Contained
Classification Tonnes (grams/tonne) (x1000) (ounces/ton) Gold
(x1000) Ounces
(x1000)
Measured(1) 52,919 0.91 58,333 0.026 1,543
Indicated(1) 138,020 0.81 152,139 0.024 3,581
Measured &
Indicated(1) 190,939 0.84 210,472 0.024 5,125
Inferred(2) 94,008 0.74 103,625 0.022 2,244
TetraTech worked with Resource Development inc. ("RDi") of Arvada, Colorado and Ausenco of Perth, Australia in the completion of the PEA. Key elements of the PEA are summarized below.
In Pit Mineral Resource Estimation
At the present time, the Mt. Todd gold project contains no CIM definable Mineral Reserves(3) . However, in accordance with accepted standards for a PEA, Measured and Indicated Resources(1) (and in two cases, Inferred Resources(2)) have been used as the basis for the economic evaluation. The Base Case(3) final pit design is based on the US$600 per ounce gold Lerchs-Grossman ("LG") economic pit which used all three mineral resource classifications in its analysis. Case 2 is a more conservative case with the final pit design based on the US$550 per ounce gold LG economic pit which used only Measured and Indicated Resources(1). Case 3(3) evaluates the up-side potential of the project with the final pit design based on the US$750 per ounce gold LG economic pit which used all three mineral resource classifications. In all three cases, the LG economic pit was smoothed and ramps were added to arrive at a final pit design. Mine production schedules were developed for the first three years of operation, after which an average ore and waste profile was used as the basis for the cash flow analysis. The following table summarizes the estimated mineral resources included in the PEA for each of the three cases.
Base Case(3) (US$600 Tonnes Grade Contained
Design) (000's) (grams Au per Ounces
tonne) Gold(1)
Measured
Resources(1) 46,528 0.95 1,421,110
Indicated
Resources(1) 101,041 0.87 2,826,530
Inferred
Resources(2) 14,249 0.73 334,420
Case 2 (US$550 Design) Tonnes Grade Contained
(000's) (grams Au per Ounces
tonne) Gold(1)
Measured
Resources(1) 32,908 1.09 1,153,240
Indicated
Resources(1) 59,225 1.04 1,980,260
Inferred
Resources(2) 1,561 0.78 39,150
Case 3(3) (US$750 Tonnes Grade Contained
Design) (000's) (grams Au per Ounces
tonne) Gold(1)
Measured
Resources(1) 56,790 0.87 1,588,480
Indicated
Resources(1) 152,060 0.75 3,666,630
Inferred
Resources(2) 44,912 070 1,010,770
Mining
In both the Base Case(3) and Case 2, the operation has been sized to mine and process 30,000 tonnes of ore per day (nominally 10.5 million tonnes per year). The estimated mine life of Base Case(3) is 15.2 years and 8.9 years for Case 2. In Case 3(3) the operation has been sized to mine and process 60,000 tonnes of ore per day (nominally 21.0 million tonnes per year) and the resulting mine life is 11.9 years. In all three cases the mine schedule and equipment requirements are based on an owner-operated fleet of 141 tonne trucks and 18 m(3) shovels. The mining costs are estimated to be US$1.34 per tonne in the Base Case(3) , US$1.23 in Case 2 and US$1.26 in Case 3(3) . Optimization of the project (including the fleet size) will occur as part of the pre-feasibility study. The following table presents basic mine and project production results:
Total Life of Average Average Average Average
Contained Mine Grade - Grade - Gold Gold
Ounces Stripping Years 1-3 Life of Production - Production -
Ratio (grams Au Mine Years 1-3 Life of Mine
(waste : per tonne)(grams Au ounces/year ounces/year
ore) per tonne)
Base
Case(3) 4,526,000 1.9 1.06 0.87 296,700 245,500
Case 2 3,163,000 2.7 1.18 1.05 331,300 291,600
Case
3(3) 6,200,000 1.6 0.87 0.76 486,700 429,700
Processing
Since acquiring the Mt. Todd gold project, Vista has been evaluating processing alternatives for the Mt. Todd ore. The metallurgical testing has been aided by a better understanding of the mineralogy of the orebody after two years of exploration drilling in the Batman deposit. An investigation of the sulfide species present in the deposit indicates that pyrite is the predominant sulfide mineral near the surface with chalcocite and chalcopyrite. Near the bottom of the existing pit, pyrite begins to transition to pyrrhotite and the chalcocite is replaced almost entirely by chalcopyrite. At depth, pyrrhotite becomes the dominant sulfide with lesser amounts of pyrite and chalcopyrite. Galena and sphalerite are also present in minor quantities in various parts of the deposit. The transition out of the chalcocitic mineralization in the early part of the project indicates that the quantity of cyanide soluble copper in the deposit is considerably less than previously thought and should not present any long-term processing challenges.
Vista's metallurgical test programs have successfully focused on two critical areas of the process flowsheet, namely: crushing/grinding and gold recovery. Several significant advancements have resulted in reductions in operating costs without reducing gold recoveries. Studies completed to date have indicated that the Mt. Todd ore will be amenable to processing using high pressure grinding roll ("HPGR") technology. The test work to date has determined that a gold recovery of 82% can likely be achieved in a whole ore leach circuit with a grind circuit product of 80% passing 100 mesh ("P(80) 100"). Testwork completed by RDi and Polysius indicate that a crushing/grinding circuit with three stages of crushing followed by high pressure grinding rolls and grinding in ball mills will have an 18.1 kilowatt-hour per tonne ore power requirement. This is a 46% reduction in power requirements compared to the previously contemplated conventional crushing, SAG mill/ball mill circuit with an 80% passing 200 mesh product. We expect that the process circuit will include cyanide detoxification prior to tailings handling. The processing costs are estimated to be US$5.75 per tonne of material processed (exclusive of tailings treatment).
Tailings Management
As a result of the relatively coarse grind employed in the leaching circuit (P(80) 100) and subsequent product size, Vista has evaluated filtration and the use of a dry-stack tailings storage system. A preliminary evaluation indicates that the technology may be economically implemented at Mt. Todd. Employing dry-stack tailings results in a significant reduction in capital costs compared to a conventional tailings storage facility and a small increase in operating costs. We expect that the material will be compacted and the side slopes will be armored with rock and revegetated to minimize erosion. The tailings de-watering and stacking costs are estimated to be US$0.36 per tonne of material processed.
Water Management and Acid Rock Drainage
Vista has implemented a water management program to handle surface run-off and acid rock drainage ("ARD") from the existing, unreclaimed waste dump and heap leach. Vista expects to commission a lime treatment plant in June as part of a planned improvement in the water management program. Vista plans to encapsulate the existing facilities and in a similar manner isolate waste with an ARD potential prior to closure. A passive treatment system will be evaluated as part of the closure planning.
Infrastructure
The Mt. Todd mine site is 230 km southeast of the port of Darwin and 56 km by road north-northeast of the regional center of Katherine. Katherine and Darwin are connected to Darwin by a railroad and the Stuart Highway. An existing paved road connects the mine site to the Stuart Highway. The site's existing electric power facilities are sufficient for current and expected construction requirements. During project operation, Vista expects to use natural gas-fired generators as the source of project power and we have included them in the capital and operating cost estimates. An existing raw water dam and reservoir is expected to provide water for the process requirements.
Operating Costs
The operating costs have been developed based on current conditions in Northern Territory, Australia. Quotes have been obtained for diesel fuel and natural gas as the primary energy components. Labor rates have been developed based on Vista's experience in Australia and have been compared to rates provided by AUSENCO (the Australian engineering firm retained to complete the pre-feasibility process engineering). Mine equipment operating and maintenance costs have been estimated based on US experience. Reagent costs have been provided by AUSENCO. Grinding media costs have been estimated based on world commodity prices. All Australian costs have been converted to US$ costs using a foreign exchange rate of A$1.35 per US$1. The following table summarizes the operating costs for the three cases evaluated in the PEA.
Base Case 2 Case
Case(3) 3(3)
Mining (US$/tonne material mined) $1.34 $1.23 $1.26
Mining (US$/tonne material processed) $3.84 $4.59 $3.25
Milling (US$/tonne material processed) $5.75 $5.75 $5.32
Tailings De-watering (US$/tonne material
processed) $0.23 $0.23 $0.23
Tailings Dry-Stacking (US$/tonne
material processed) $0.13 $0.13 $0.13
Environmental (US$/tonne material
processed) $0.05 $0.05 $0.05
G&A (US$/tonne material processed) $0.44 $0.44 $0.44
Total Operating Costs (US$/tonne
material processed) $10.44 $11.19 $9.42
Capital Costs
The mining capital equipment costs area based on budgetary quotes for the first quarter 2009. RDi obtained quotes for the major mill components. Capital costs for the remainder of the process area were estimated based on accepted factors. In Case 3, the same sized mining equipment was used even though the mining rate doubled. Vista views this as an opportunity for future improvement in the project. The process equipment capital costs for the 60,000 tonne per day mill were factored from the 30,000 tonne per day mill in the base case. A 20% contingency factor was applied to all capital costs and is included in the estimate.
Economic Analysis
The cash flow analysis results for the three cases evaluated in the PEA are summarized in the following table.
Net Cash Pre-Tax Internal
Flow NPV8 Rate of
Life of Pay-back (US$000's) @ (US$000's) @ Return @
Mine Period US$750 per US$750 per US$750 per
(years) (years) ounce Gold ounce Gold ounce Gold
Base
Case(3) 15.2 3.0 $646,682 $232,894 21.6%
Case 2 8.9 3.8 $485,697 $211,916 23.1%
Case 3(3) 11.9 3.3 $815,944 $302,153 20.4%
Pre- Life- Cash Operating Capital
Total Gold Production of-Mine Cost Cost
Production Capital Capital (US$/ (US$/
(ounces) (US$000's) (US$000's) ounce Au) ounce Au)
Base
Case(3) 3,732,000 $323,142 $417,787 $453 $112
Case 2 2,595,000 $339,846 $380,496 $404 $147
Case 3(3) 5,114,000 $494,477 $567,392 $467 $110
Sensitivity Analysis
The PEA includes an analysis of project sensitivity to changes in gold price, capital costs and operating costs. The following table summarizes the results of the sensitivity analysis for the Base Case.
NPV8 - Base Case Gold Price of US$750/ounce (US$ millions)
-20% -10% Base Case +10% +20%
Gold Price ($43.7) $94.6 $232.9 $371.2 $509.5
Capital Cost $299.6 $266.3 $232.9 $199.5 $166.1
Operating Cost $397.4 $315.1 $232.9 $150.6 $68.4
Base Case Sensitivity to Various Gold Prices (US$ millions)
Gold Price
(US$/oz Au) US$650 US$750 US$850 US$950 US$1050
NPV8 $48.5 $232.9 $417.3 $601.7 $786.1
Internal Rate
of Return 11.3% 21.6% 30.1% 37.7% 44.7%
Note: NPV8 and IRR are calculated on a pre-tax basis.
Discussion and Planning
As previously announced, work on the pre-feasibility study is underway including additional high pressure grinding roll testing at JKTech Pty Ltd. in Queensland, Australia and a 7-10,000 meter drilling program is planned to potentially expand the estimated gold resource and, if possible, to convert Inferred Resources(2) to Measured and Indicated Resources(1). Vista is currently considering consolidating the pre-feasibility and bankable feasibility programs in order to accelerate the completion of the bankable feasibility study on the Mt. Todd gold project.
For further information of the Mt. Todd gold project please see our technical report available on SEDAR entitled "MT. TODD GOLD PROJECT, Gold Resource Update, Northern Territory, Australia" and dated February 27, 2009. This technical report was prepared by or under the supervision of Mr. John Rozelle, an independent qualified person under NI 43-101.
Update on Paredones Amarillos Project
Vista continues to work through the permitting process at the Paredones Amarillos project, located in Baja California Sur, Mexico. Vista is awaiting a permit for a small drilling program as well as the Temporary Occupation Permit which is a prerequisite for the Change of Land Use Permit. Mike Richings, Executive Chairman and CEO commented, "The delay in receipt of these permits has been frustrating but our Mexican advisors and the Mexican regulators continue to confirm to us that Vista has the legal right to mine and develop the Paredones Amarillos deposit. We have been and will continue to look for ways to expedite the permitting process so that we can commence development and construction at Paredones Amarillos. In the meantime, our continued success at Mt. Todd enables Vista to effectively allocate resources and advance both projects as part of our strategy to become a mid-tier gold producer over the next two to five years."
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. Vista has undertaken programs to advance the Paredones Amarillos project, located in Baja California Sur, Mexico, including a definitive feasibility study, the purchase of long delivery equipment items, 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 project in Australia are encouraging and Vista is undertaking other studies to advance the project. Vista's other holdings include the Guadalupe de los Reyes project in Mexico, Yellow Pine project in Idaho, Awak Mas project in Indonesia, and the Long Valley project in California.
(1) Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources: This press release uses the terms "Measured Resources", "Indicated Resources" and "Measured & Indicated Resources." We advise U.S. investors that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission ("SEC") Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. 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. 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.
(2) Cautionary Note to U.S. Investors concerning estimates of Inferred Resources: This press release uses the term "inferred resources". We advise U.S. investors that while this term is defined in and required by Canadian regulations, this term is not a defined term under SEC Industry Guide 7 and is normally not permitted to be used in reports and registration statements filed with 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 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. 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. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.
(3) Cautionary Note concerning economic analysis that include Inferred Resources: Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This PEA is preliminary in nature and it includes Inferred Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized.
(4) Cautionary Note to U.S. Investors concerning estimates of Reserves: This press release uses the term "Mineral Reserve". We advise U.S. investors that while this term is defined in and required by Canadian regulations, such definitions differ from the definitions in the SEC Industry Guide. Under 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 the primary environmental analysis or report must be filed with the appropriate governmental authority.
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 economic analysis, estimates of mineral resources, the conversion of inferred resources to measured and indicated resources, the conversion of mineral resources to mineral reserves, life of mine estimates, the potential for gold resources in the Batman deposit and other targets within the Mt. Todd project, the waste-to-ore ratio at Mt. Todd, the successful completion of a metallurgical testing program at Mt. Todd, the beginning of a Mt. Todd pre-feasibility study, future gold prices, future U.S.-to-Australian dollar exchange rates, the improved efficiencies of high pressure grinding roll technology, favorable effects of Mt. Todd project economics and Vista's ability to add value in a cost-effective manner the estimated operating and capital costs and the cash flow analysis and sensitivity analysis in the Mt. Todd Preliminary Economic Assessment, anticipated processing and tailings management and other such matters are forward-looking statements and forward-looking information. 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 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 resource estimates, estimates of results based on such resource estimates; risks relating to completing metallurgical testing and scheduling for pre-feasibility studies; risks relating to cost increases for capital and operating costs including cost of power; risks relating to delays at the Mt. Todd Project; 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; uncertainties concerning 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 under the headings "Uncertainty of Forward-Looking Statements" and "Risk Factors" in Vista's latest Annual Report on Form 10-K as filed on March 13, 2009, as amended April 16, 2009, and Quarterly Report on Form 10-Q, as filed May 6, 2009, and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. 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.
Without limiting the foregoing, this press release uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosures an issuer makes of scientific and technical information concerning mineral projects. All mineral resource estimates contained in this press release, including the terms "measured mineral resources," "indicated mineral resources" and "inferred mineral resources", have been prepared in accordance with NI 43-101, and these standards differ significantly from the requirements of the SEC. The resource information contained in this press release is not comparable to similar information disclosed by U.S. companies. See the Cautionary Notes to U.S. Investors above.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Reviews Project Activities, Announces First Quarter 2009 Financial Results and Conference Call with Management
Vista Gold Corp. ("Vista") (TSX & NYSE Amex: VGZ) provides the following updates on its principal project activities, announces the financial results for the quarter ended March 31, 2009, as filed on May 6, 2009 with the U.S. Securities and Exchange Commission and the relevant Canadian securities commissions in its Quarterly Report on Form 10-Q, and a conference call with management scheduled for Wednesday, May 13, 2009, at 10:00 A.M. (EDT).
Paredones Amarillos
In February 2009, Vista retained the Roberts and Schaefer Company ("R&S") to conduct a review of the proposed Paredones Amarillos gold project process facility lay-out and the proposed design of the crushing, material handling and milling area as presented in the bankable feasibility study for the project. R&S' study is nearing completion and several design improvements have been identified that have the potential to improve operating efficiencies and to reduce the estimated capital costs for the proposed processing facility. Vista has retained R&S to undertake a complete re-estimate of the process area capital and operating costs. Vista has also retained SRK Consulting to complete a re-estimation of the project capital and operating costs and expects these cost up-dates by the end of the second quarter of 2009. The bankable feasibility study was completed on and dated September 5, 2008, when prices for contracted services and raw materials were higher than today. In addition there has been a favorable change in the Mexican Peso - US dollar exchange rate since the completion of the study in September 2008. The new estimates will reflect current economic conditions.
Vista is currently waiting for notification of the status of the Temporary Occupation Permit ("TOP"), for the project, which is a pre-requisite for the Change of Land Use Permit. The TOP approval process continues in accordance with the established procedures; however, it is uncertain whether a further administrative review involving a site visit will be required. In addition to the TOP, Vista expects to receive approval of a permit for a development drilling program within the next few weeks. Vista will provide additional information regarding the status of permits at the earliest opportunity.
Mt. Todd
Vista has recently completed the first stage of a comprehensive metallurgical test program which was initiated in 2008 using core drilling samples obtained during the 2007 and 2008 drilling programs at Mt Todd. The program examined various approaches to recovering the gold and to determine the principal operating parameters; including recovery, power and steel consumptions for crushing and grinding and principal reagents consumption. Vista has retained TetraTech of Golden, Colorado, to complete a new Preliminary Economic Evaluation ("PEA") for the Mt. Todd project. The results of the metallurgical test program and the previously announced resource estimate (refer to Vista's press release dated January 26, 2009) will be incorporated into the PEA which is expected to be released in the near future.
Financial Results
Our consolidated net loss for the three-month period ended March 31, 2009, was US$1.9 million or $0.05 per share compared to a consolidated net loss of US$2.1 million or $0.06 per share for the same period in 2008. The decrease in the consolidated net loss of US$0.2 million from the respective prior period is primarily due to a decrease in the loss from discontinued operations of US$0.2 million as there were no disposals during the 2009 period and a decrease in corporate administration and investor relations expense of US$0.3 million. Also, for the 2009 period, there was a future income tax benefit of US$0.2 million compared to a future income tax loss of US$0.3 million for the same period during 2008. Offsetting these amounts was an increase in interest expense of US$0.4 million, an increase in exploration, property evaluation and holding costs of US$0.09 million, an increase in the write-down of marketable securities of US$0.1 million and a decrease in interest income of US$0.08 million.
Net cash used in operating activities was US$1.1 million for the three-month period ended March 31, 2009, compared to US$1.2 million for the same period in 2008. The decrease of US$0.1 million is the result of a decrease of non-cash items of US$0.1 million and a decrease in cash used for accounts payable, accrued liabilities and other of US$0.1 million, which is partially offset by a decrease in the consolidated net loss of US$0.02 million.
Net cash used in investing activities decreased to US$1.1 million for the three-month period ended March 31, 2009, from US$18.1 million for the same period in 2008. The decrease of US$17.0 million is mostly due to a decrease in the additions to property, plant and equipment of US$16.1 million. With the completion of a brokered private placement on March 7, 2008, of US$30.0 million of principal amount of senior secured notes (the "Notes"), we have used US$16.0 million of the proceeds towards the purchase of gold processing equipment to be used at our Paredones Amarillos project, which included the costs of relocating the equipment to Edmonton, Alberta, Canada. There was no similar purchase during the three-month period ended March 31, 2009.
There was no cash provided by or used in financing activities for the three-month period ended March 31, 2009. Net cash provided by financing activities was US$31.5 million for the three-month period ended March 31, 2008. During the three-month period ended March 31, 2008 we completed a brokered private placement, in which we offered and sold US$30.0 million principal amount of the Notes. Proceeds to Vista after legal and other fees were US$28.5 million. Also, during the three-month period ended March 31, 2008, warrants exercised produced cash proceeds of US$2.9 million and stock options exercised produced cash proceeds of US$0.1 million. There were no warrants or stock options exercised in the three-month period ending March 31, 2009.
At March 31, 2009, our total assets were US$76.6 million, compared to US$75.8 million at December 31, 2008, representing an increase of US$0.8 million. At March 31, 2009, we had working capital of US$19.4 million compared to US$21.2 million at December 31, 2008, representing a decrease of US$1.8 million. This decrease relates primarily to a reduction in cash balances from year end, which is offset by an increase in our marketable securities balances due to better market conditions.
The principal component of working capital at both March 31, 2009 and December 31, 2008, is cash and cash equivalents of US$11.0 million and US$13.3 million, respectively. Other components include marketable securities (March 31, 2009 - US$9.4 million; December 31, 2008 - US$8.2 million) and other liquid assets (March 31, 2009 - US$0.6 million; December 31, 2008 - US$0.6 million).
On April 3, 2009, Vista announced that it had sold all of its 1,529,848 shares of Allied Nevada Gold Corp. ("Allied") for US$9.0 million. These shares had a book value of US$2.2 million and when sold, resulted in a realized gain of US$6.8 million. The proceeds from this transaction increased the Company's unaudited cash balance to approximately US$20.5 million. In May 2007, Vista completed a transaction that resulted in the formation of Allied and the transfer of Vista's Nevada properties to Allied. The Allied shares sold by Vista were retained in connection with this transaction to facilitate the payment of any taxes payable by Vista in respect of the transaction. Vista has determined that there are no other taxes payable by it in respect of the transaction and made the decision to sell the Allied shares at the appropriate time and use the cash for project development requirements.
On April 17, 2009, we announced that we filed a preliminary short form base shelf prospectus in Canada with certain Canadian securities commissions and a corresponding shelf registration statement in the United States with the Securities and Exchange Commission ("SEC"). On April 27, 2009, we announced that we filed a final short form base shelf prospectus in Canada and an amended Form S-3 with the SEC. The Form S-3 was declared effective on April 30, 2009.
Selected financial results are tabulated below:
Selected Financial Data Three Months Ended March 31,
2009 2008
U.S. $000's, except loss per share (restated)
Results of operations
Net loss $(1,880) $(2,123)
Basic and diluted loss per share (0.05) (0.06)
Net cash used in operations (1,182) (1,207)
Net cash used in investing
activities (1,102) (18,113)
Net cash provided by financing
activities - 31,544
Financial position March 31, December 31,
2009 2008
(restated)
Current assets $20,939 $22,012
Total assets 76,604 75,765
Current liabilities 1,580 803
Total liabilities 25,906 24,527
Shareholders' equity 50,698 51,238
Working capital 19,359 21,209
The Annual General Meeting of Vista's shareholders was held on May 4, 2009. Re-elected to the Board of Directors for a one-year term were John M. Clark, W. Durand Eppler, C. Thomas Ogryzlo, Tracy A. Stevenson, Michael B. Richings and Frederick H. Earnest. PricewaterhouseCoopers LLP was re-appointed independent auditors. In addition, shareholders approved the amendments to Vista's stock option plan described in the information circular for the meeting, and the unallocated options issuable under the plan. The amendments to Vista's stock option plan included an amendment to provide for the automatic extension of the expiry date of options that expire during a black-out period to the date that is 10 business days after the end of the blackout period. The approval of unallocated options was required because Vista's stock option plan is a rolling stock option plan and under the rules of the Toronto Stock Exchange, shareholders are required to approve all unallocated stock options issuable under a rolling stock option plan every three years. Further information regarding these matters may be found in the information circular for the meeting.
Management Conference Call
To review Vista's Quarterly Report on Form 10-Q for the fiscal quarter ending March 31, 2009, including our Management Discussion & Analysis, visit either www.sedar.com, www.sec.gov or www.vistagold.com. A conference call with management to review our financial results for the quarter ended March 31, 2009 and corporate and project activities is scheduled on Wednesday, May 13, 2009 at 10:00 a.m. EDT.
Toll-free in North America: 1-866-782-8903 International: 1-647-426-1845
This call will also be web-cast and can be accessed at the following web location:
http://www.snwebcastcenter.com/event/?event_id=403
This call will be archived and available at www.vistagold.com after May 13, 2009. Audio replay will be available for three weeks by calling in North America: 1-866-245-6755, passcode 596915.
If you are unable to access the audio or phone-in on the day of the conference call, please feel free to email questions to Connie Martinez, Manager - Investor Relations, (email:
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 is undertaking programs to advance its Paredones Amarillos project and has completed a bankable feasibility study and purchased certain long delivery equipment items for use at the project. If the remaining permits are received by mid-year and financing arrangements for the Paredones Amarillos project are completed during the second half of the year, Vista has prepared a development schedule which anticipates that the project would be in production during 2011. A preliminary assessment for the Mt. Todd project in Australia was completed in 2007 and additional technical studies are underway, with the preparation of a preliminary feasibility study targeted for 2009. Vista's other holdings include the Guadalupe de los Reyes project in Mexico, Yellow Pine project in Idaho, the Awak Mas project in Indonesia, and the Long Valley project in California.
Reported financial results in this press release are approximate. For exact amounts please see Vista's Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission on May 6, 2009.
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 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 including the timing and receipt of required land use, environmental and other permits for the Paredones Amarillos project and timing for starting and completion of drilling and testing programs at the Paredones Amarillos project; plans to confirm the validity of the Change of Land Use Permit and to obtain the Temporary Occupation Permit for the Paredones Amarillos project and timing for confirmation of the status of those and other permits; anticipated changes in capital and operating costs; anticipated timing of commencement of construction and commencement of production at the Paredones Amarillos project; plans for evaluation of the Mt. Todd project including estimates of silver, copper and gold resources; preliminary assessment results; results of drilling programs and prospects for exploration and conversion of resources at the Mt. Todd project and plans for a feasibility study at the Mt. Todd project; Vista's future business strategy; competitive strengths; goals; operations; reserve and resource estimates; plans; potential project development; future share price and valuation; future gold prices; Vista's potential status as a producer including plans, timing and targeted initial production levels; and other such matters are forward-looking statements and forward-looking 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 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 project, including uncertainty relating to timing and receipt for required governmental permits; uncertainty relating to timing and receipt of the Temporary Occupation Permit and for confirmation of the validity of the Change of Land Use Permit for the Paredones Amarillos 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 project and Mt. Todd project; 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 and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. 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.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Filing of Final Short Form Base Shelf Prospectus and Amendment to Registration Statement
Vista Gold Corp. ("Vista" or the "Corporation") (TSX & NYSE Amex: VGZ) is pleased to announce that it filed today a final short form base shelf prospectus (the "Prospectus") with the securities commissions in each province and territory of Canada (other than Quebec) and an amendment to its shelf registration on Form S-3 with the United States Securities and Exchange Commission (collectively, the "Offering Documents"). The Offering Documents, when brought effective, will allow Vista to make offerings of common shares, debt securities, warrants, subscription receipts or units for initial aggregate proceeds of up to US$200 million during the next 25 months to potential purchasers in each province and territory of Canada (other than Quebec).
As previously announced, Vista expects that it will need to fund the initial capital requirements for the construction and development of its Paredones Amarillos gold project, once necessary permits and approvals have been received. Although the initial financings under the Prospectus are expected to be used for the construction and development of our existing properties, the proceeds from financings under the Offering Documents may also be used by Vista to fund development of its other existing or acquired mineral properties, acquisitions, working capital requirements, repayment of outstanding indebtedness from time to-time or for other general corporate purposes. The Offering Documents are expected to provide Vista with a flexible and efficient approach for completing future financings for corporate growth and development.
A copy of the final short form base shelf prospectus may be obtained from the SEDAR website at www.sedar.com or from Vista upon request by email at
A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
About Vista Gold
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 undertaken programs to advance our Paredones Amarillos gold project, including the completion of a bankable feasibility study and the purchase of long delivery equipment items for use at that project. A drilling program was completed on our Mt Todd project in 2008 and a new resource estimate was completed early in 2009. Metallurgical studies are underway and a new pre-feasibility study is expected to be completed during 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.
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 those relating to the proposed financing by Vista, are forward-looking statements. The timing, occurrence and results or events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, capital market conditions, risks relating to fluctuations in the price of gold, uncertainties concerning reserve and resource estimates, risks relating to the status of Vista's required governmental permits for the Paredones Amarillos gold project, delays in construction of the Paredones Amarillos gold project, feasibility study results and the estimates on which they are based and studies and timing relating to new resources estimates, as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the securities commissions in each province and territory of Canada and with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, 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, 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 www.vistagold.com.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Filing of Preliminary Short Form Base Shelf Prospectus and Registration Statement
Vista Gold Corp. ("Vista" or the "Corporation") (TSX & NYSE Amex: VGZ) is pleased to announce that it filed today a preliminary short form base shelf prospectus with the securities commissions in each province and territory of Canada (other than Quebec) and a corresponding shelf registration statement on Form S-3 with the United States Securities and Exchange Commission (collectively, the "Offering Documents"). The Offering Documents, when brought effective, will allow Vista to make offerings of common shares, debt securities, warrants, subscription receipts or units for initial aggregate proceeds of up to US$200 million during the next 25 months to potential purchasers in each province and territory of Canada (other than Quebec) and the United States. Vista expects that it will need to fund the initial capital requirements for the construction and development of its Paredones Amarillos gold project, once necessary permits and approvals have been received. Although the initial financings under the Offering Documents are expected to be used for the construction and development of our existing properties, the proceeds from financings under the Offering Documents may also be used by Vista to fund development of its other existing or acquired mineral properties, acquisitions, working capital requirements, repayment of outstanding indebtedness from time-to-time or for other general corporate purposes. The Offering Documents provide Vista with a flexible and efficient approach for completing future financings for corporate growth and development.
A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
About Vista Gold
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 undertaken programs to advance our Paredones Amarillos gold project, including the completion of a bankable feasibility study and the purchase of long delivery equipment items for use at that project. A drilling program was completed on our Mt Todd project in 2008 and a new resource estimate was completed early in 2009. Metallurgical studies are underway and a new pre-feasibility study is expected to be completed during 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.
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 those relating to the proposed financing by Vista, are forward-looking statements. The timing, occurrence and results or events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, capital market conditions, risks relating to fluctuations in the price of gold, uncertainties concerning reserve and resource estimates, risks relating to the status of Vista's required governmental permits for the Paredones Amarillos gold project, delays in construction of the Paredones Amarillos gold project, feasibility study results and the estimates on which they are based and studies and timing relating to new resources estimates, as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the securities commissions in each province and territory of Canada and with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, 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, 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 www.vistagold.com.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Sale of Its Allied Nevada Gold Corp. Shares
Vista Gold Corp. ("Vista" or the "Company") (TSX & NYSE Amex: VGZ) announced that it has sold 1,529,848 shares of Allied Nevada Gold Corp. ("Allied") for approximately US$9.0 million. In May 2007, Vista completed a transaction that resulted in the formation of Allied and the transfer of Vista's Nevada properties to Allied. The Allied shares sold by Vista were retained by Vista in connection with this transaction to facilitate the payment of any taxes payable by Vista in respect of the transaction. Vista has determined that there are no other taxes payable by Vista in respect of the transaction and made the decision to sell the Allied shares at the appropriate time and use the cash for project development requirements. The proceeds from the sale of the Allied shares will increase the Company's unaudited cash balance to approximately US$20.5 million.
Fred Earnest, President and COO of Vista, commented, "Since the formation of Allied Nevada Gold Corp. we have watched the progress of Allied's exploration and development programs. Allied's success in expanding and identifying new mineral resources at the Hycroft mine is very encouraging to Vista, as we are starting to enjoy similar successes at our Mt. Todd gold project in Northern Territory, Australia. Allied's recent success in reaching commercial gold production at the Hycroft mine and the completion of a new resource estimate are significant achievements that have had a favorable impact on Allied's share price. As a result, we decided that this was the appropriate time to convert this working capital asset to cash."
About Vista Gold
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 undertaken programs to advance our Paredones gold project, including the completion of a bankable feasibility study and the purchase of long delivery equipment items for use at that project. A drilling program was completed on our Mt Todd project in 2008 and a new resource estimate was completed early in 2009. Metallurgical studies are underway and a new pre-feasibility study is expected to be completed during 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.
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 the impact of working capital from the disposition of Allied shares; plans for evaluation of the Mt. Todd project including estimates of silver, copper and gold resources; preliminary assessment results; completion of the pre-feasibility study for the Mt. Todd project; Vista's future business strategy; plans; potential project development; Vista's potential status as a producer including plans, timing and targeted initial production levels; and other such matters are forward-looking statements and forward-looking 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 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 project, including uncertainty relating to timing and receipt for required governmental permits; uncertainty relating to timing and receipt for confirmation of the validity of the Change of Land Use Permit for the Paredones Amarillos 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 project and Mt. Todd project; 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 and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. 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.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces Year-End Financial Results
Vista Gold Corp. ("Vista") (TSX & NYSE-AMEX: VGZ) announced today its financial results for the year ended December 31, 2008, as filed on March 13, 2009 with the U.S. Securities and Exchange Commission and Canadian securities commissions in Vista's Annual Report on Form 10-K. Our 2008 consolidated net loss was US$10.0 million or US$0.29 per share, basic and diluted, compared to the 2007 consolidated net loss of US$13.2 million or US$0.41 per share, basic and diluted, for a net decrease of US$3.2 million. The decrease of US$3.2 million in 2008 is primarily the result of the impairment of the Amayapampa project of US$5.5 million and costs related to the completion of the arrangement transaction involving Allied Nevada Gold Corp. of US$2.9 million, both of which occurred during the 2007 period. These amounts are offset by decreased interest income of US$0.7 million, an increase in interest expense of US$2.0 million, an increase in income tax expense of US$1.4 million, an increase in impairment loss of US$0.6 million with respect to certain marketable securities, costs to dispose of the Amayapampa project of US$132,000 and an increase in loss on currency translation of US$343,000.
Net cash used in operating activities in 2008 was US$7.6 million compared to US$4.3 million in 2007 and US$1.5 million in 2006. The increase of US$3.3 million in 2008 as compared to 2007 is mostly the result of aggregate interest payments of US$2.3 million made on June 15, 2008 and December 15, 2008 for the senior secured convertible notes (the "Notes") issued in March 2008, and an increase in the loss from continuing operations of US$2.8 million, which has been partially offset by an increase in non-cash items of US$2.1 million.
Net cash used in investing activities in 2008 was US$26.9 million compared to US$31.3 million in 2007. The decrease of US$4.4 million is principally related to a decrease of US$24.5 million as a result of the cash transferred to Allied Nevada Gold Corp. in conjunction with the completion of the arrangement transaction in May 2007, which has been offset by the following:
-- An increase in additions to plant and equipment of US$17.5 million. On
March 4, 2008, with the completion of a brokered private placement of
US$30.0 million principal amount of the Notes. We used US$16.0
million of the proceeds towards the purchase of gold processing
equipment to be used at our Paredones Amarillos project. The aggregate
purchase price was approximately US$16.0 million, which included the
costs of relocating the equipment to Edmonton, Alberta, Canada. The
purchase was finalized in April 2008 with the completion of the
relocation of the major equipment components to Edmonton. There were
no similar purchases during the 2007 period.
-- An increase in the acquisition of mineral properties of US$452,000. On
January 24, 2008, we completed the acquisition of interests in various
mineral properties adjacent to our Guadalupe de los Reyes project in
Mexico. The consideration paid by Vista for the acquisition of these
interests included cash payments totaling US$452,000 and the issuance
of a total of 213,503 Common Shares of Vista (with an aggregate fair
value of US$1.0 million) to various parties.
-- An increase in the additions to mineral properties of US$2.2 million.
This increase primarily reflects the costs associated with the
feasibility study for the Paredones Amarillos project and a drilling
program at the Mt. Todd project.
Net cash provided by financing activities was US$31.4 million for the twelve-month period ended December 31, 2008, as compared to US$4.3 million for the same period in 2007. This increase is primarily the result of the completion of a brokered private placement of the Notes. Proceeds to Vista after payment of legal and other fees were US$28.3 million. There were no similar transactions during the 2007 period.
At December 31, 2008, our total assets were US$75.8 million as compared to US$51.3 million and US$92.7 million as of December 31, 2007 and 2006, respectively. Long-term liabilities totaled US$23.7 million at December 31, 2008; there were no long-term liabilities at December 31, 2007 and there were long-term liabilities of US$4.9 million at December 31, 2006. At the same date in 2008, we had working capital of US$21.2 million compared to US$27.2 million in 2007 and US$49.7 million in 2006.
Our working capital of US$21.2 million as of December 31, 2008, decreased from 2007 by US$6.0 million which was decreased from 2006 by US$22.5 million. The principal component of working capital for both 2008 and 2007 is cash and cash equivalents of US$13.3 million and US$16.7 million, respectively. Other components include marketable securities (2008--US$8.2 million; 2007--US$10.9 million), accounts receivable (2008--US$127,000; 2007--US$91,000) and other liquid assets (2008--US$466,000; 2007--US$289,000). The decrease of US$6.0 million in working capital from 2008 to 2007 relates to the decrease in cash balances from 2007 to 2008 and a decline in market values of our marketable securities.
Selected Financial Data Years ended December 31, US $000's, except loss per share 2008 2007 Results of operations Net loss $(9,973) $(13,150) Basic and diluted loss per share $(0.29) $(0.41) Net cash used in operations $(7,638) $(4,285) Net cash used in investing activities (26,913) (31,349) Net cash provided by financing activities 31,425 4,324 Financial position Current assets $22,012 $27,948 Total assets 75,765 51,346 Current liabilities 803 694 Total liabilities 24,527 694 Shareholders' equity 51,238 50,652 Working capital $21,209 $27,254
Mike Richings, Executive Chairman and CEO, commented on the 2008 financials: "This year's financial results largely reflect Vista's significant advances on its two major projects. The decision to increase expenditures and investments in the Paredones Amarillos project was made at the end of 2007. At the time we were completing the bankable feasibility study on the project, major equipment was in short supply. We decided to purchase the major items of processing equipment from a mill that was being dismantled. To finance this purchase, we undertook a private placement of convertible debt. Shortly after this, a Mexican government agency opined that a crucial permit was no longer valid, and rather than enter into a long and expensive legal challenge, we commenced a process to replace the permit. This process continues, and after a frustrating period last year, we are now seeing signs of progress. Although there is always uncertainty about permitting, we hope to have the key permits in place so that we can commence project financing and development activities by mid-2009. The investments and programs that were made in 2008, including the bankable feasibility study on the Paredones Amarillos project, which showed favorable results, should help to ensure an efficient period of financing and initial development of the project. At Mt. Todd, we also made significant investments in a drilling program, completed an updated mineral resource estimate and completed additional metallurgical test-work in 2008. We view the results of the drilling program as successful, as the subsequent resource estimate resulted in a substantial increase in estimated gold resources at the project. The initial results of the metallurgical studies, which are still underway, are encouraging to us and will be released in the second quarter together with an updated preliminary economic assessment. I believe the work we have completed this year has put us well on our way to establishing Mt. Todd as a major development project for Vista and reaching a production decision on the project."
Further, Richings stated, "Upon obtaining the necessary permits for the Paredones Amarillos project and upon further positive developments at both our Paredones Amarillos and Mt. Todd projects, together with continued higher gold prices, we anticipate a better valuation and higher share price for Vista during the remainder of 2009."
The annual general meeting of Vista's shareholders has been scheduled for Monday, May 4, 2009, at 10:00 a.m., Vancouver time, at the offices of Borden Ladner Gervais LLP, located at Suite 1200, 200 Burrard Street, Vancouver, British Columbia, Canada.
Management Discussion & Analysis and Conference Call
To review Vista's Form 10-K for the fiscal year ending December 31, 2008, including our Management Discussion & Analysis, visit either www.sedar.com, www.sec.gov or www.vistagold.com. A conference call with management to review our year-end financial results for 2008 and corporate and project activities is scheduled on Wednesday, March 18, 2009 at 10:00 a.m. EDT.
Toll-free in North America: 1-866-782-8903 International: 1-647-426-1845
This call will also be web-cast and can be accessed at the following web location:
http://www.snwebcastcenter.com/event/?event_id=344
This call will be archived and available at www.vistagold.com after March 18, 2009. Audio replay will be available for three weeks by calling in North America: 1-866-245-6755, passcode 571610.
If you are unable to access the audio or phone-in on the day of the conference call, please feel free to email questions, prior to the conference call, addressed to Connie Martinez, Manager - Investor Relations, (email:
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 is undertaking programs to advance the Paredones Amarillos project and has completed a bankable feasibility study and purchased certain long delivery equipment items for use at the project. If the remaining permits are received by mid-year and financing arrangements for the Paredones Amarillos project are completed during the second half of the year, Vista has completed a development schedule which anticipates that the project would be in production during 2011. A preliminary assessment for the Mt. Todd project in Australia was completed in 2007 and additional technical studies are underway, with the preparation of a preliminary feasibility study targeted for 2009. Vista's other holdings include the Guadalupe de los Reyes project in Mexico, Yellow Pine project in Idaho, the Awak Mas project in Indonesia, and the Long Valley project in California.
Reported financial results in this press release are approximate. For exact amounts please see Vista's Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 13, 2009.
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 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 including the timing and receipt of required land use, environmental and other permits for the Paredones Amarillos project and timing for starting and completion of drilling and testing programs at the Paredones Amarillos project; plans to confirm the validity of the Change of Land Use Permit and to obtain the Temporary Occupation Permit for the Paredones Amarillos 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 project; plans for evaluation of the Mt. Todd project including estimates of silver, copper and gold resources; preliminary assessment results; results of drilling programs and prospects for exploration and conversion of resources at the Mt. Todd project and plans for a feasibility study at the Mt. Todd project; potential for gold production at the Amayapampa gold project and timing for commencement of production and timing and receipt of future payments in connection with the disposal of the Amayapampa gold project; Vista's future business strategy; competitive strengths; goals; operations; reserve and resource estimates; plans; potential project development; future share price and valuation; future gold prices; Vista's potential status as a producer including plans, timing and targeted initial production levels; and other such matters are forward-looking statements and forward-looking 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 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 project, including uncertainty relating to timing and receipt for required governmental permits; uncertainty relating to timing and receipt for confirmation of the validity of the Change of Land Use Permit for the Paredones Amarillos 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 project and Mt. Todd project; 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 and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. 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.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces 57% Increase in Measured and Indicated Gold Resource Estimates at the Mt. Todd Project Increasing Measured and Indicated Resources by 1.65 Million Ounces and Inferred Resources by 318,000 Ounces
Vista Gold Corp. ("Vista") (TSX & NYSE-A: VGZ) is pleased to announce that an updated gold resource estimate for the Batman deposit at the Mt. Todd Gold Project in Northern Territory, Australia.
The new resource estimate as presented in the following table represents an increase in Measured Resources(1) of 78,000 ounces of gold and an increase in Indicated Resources(1) of 1,572,000 ounces of gold resulting in a combined increase in Measured and Indicated Resources(1) of 1,650,000 ounces of gold at a cutoff grade of 0.50 grams per tonne (0.015 ounces of gold per ton). The gold resource estimate for the Batman deposit as of January 23, 2009, reported at a cutoff grade of 0.50 grams of gold per tonne is set out below. The estimate was prepared using GEMCOM software and used whole block kriging to estimate block values.
Resource Metric Average Grade Short Tons Average Grade Contained
Classification Tonnes (grams/tonne) (x1000) (ounces/ton) Gold Ounces
(x1000) (x1000)
Measured(1) 44,645 0.99 49,212 0.029 1,424
Indicated(1) 105,936 0.92 116,773 0.027 3,121
Measured &
Indicated(1) 150,581 0.94 165,985 0.027 4,545
Inferred(2) 66,725 0.86 73,551 0.025 1,849
1. Cautionary Note to U.S. Investors concerning estimates of Measured and
Indicated Resources: This table uses the terms "measured resources" and
"indicated resources". We advise U.S. investors that while these terms
are recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission ("SEC") does not recognize them. The
SEC normally only permits issuers to report mineralization that does
not constitute "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. 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.
2. Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources: This table uses the term "inferred resources". We advise
U.S. investors that while this term is recognized and required by
Canadian regulations, the SEC 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. The
SEC normally only permits issuers to report mineralization that does
not constitute "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. U.S.
investors are cautioned not to assume that any part or all of an
inferred resource exists or is economically or legally minable.
Fred Earnest, President and COO of Vista, stated, "The 57% increase in the estimated total gold resources to 6.3 million ounces resulting from the success of the 2008 drilling program increases our understanding of the Batman deposit. We are optimistic that future drilling may convert a majority of the estimated Inferred resources to Measured and Indicated and that there is potential for additional gold resources in both the Batman extensions and in the other targets on the Mt. Todd property. Previous pit design estimates indicated we can expect a relatively low waste-to-ore ratio and we expect that a newly identified mineralized zone in the hanging wall will also favorably affect the waste-to-ore stripping ratio. We have completed preliminary geotechnical investigations in the areas of the proposed tailings impoundment facilities, a pit slope design study and a preliminary baseline environmental data review. When the metallurgical testing program is concluded, which we expect to occur in the near future, we intend to undertake a pre-feasibility study to determine project economics and estimate mineable reserves. We expect gold prices to remain high, the US/Australian dollar exchange rate to remain favorable and the improved efficiencies of high pressure grinding roll technology on the hard Mt. Todd ore to favorably affect operating costs, all of which we anticipate will have positive impacts on the project economics."
The updated gold resource estimate was completed on January 23, 2009, by Tetra Tech of Golden, Colorado, pursuant to Canadian National Instrument 43-101 ("NI 43-101"). This updated gold resource estimate was completed by or under the supervision of Mr. John Rozelle, P.G., an independent Qualified Person (as defined in NI 43-101), utilizing standard industry software and resource estimation methodology. Mr. Rozelle has reviewed and verified the technical and scientific information contained in this press release. Previous technical reports contain extensive geologic and technical information related to the deposit for which the estimate is prepared. The last technical report was filed on SEDAR on June 4, 2008, and is entitled "Mt. Todd Gold Project - Resource Update, Northern Territory, Australia" and is dated May 15, 2008. The updated resource estimate incorporates the results of 7,367 assay intervals from 14 drill holes (all core holes) drilled by Vista in 2008 with sample preparation and assaying completed by ALS Chemex. These results are in addition to the results of 100,685 assay intervals from 755 drill holes (250 core, 435 reverse circulation and 70 rotary drill holes) completed previously by BHP Resources Pty Ltd., Zapopan NL, Pegasus Gold Australia Pty Ltd. and Vista, which were used in the previous updates of the Mt. Todd resource estimate. Vista has also completed a preliminary evaluation of the development of the project, the results of which were announced on January 4, 2007. For more information on these studies please refer to our press releases dated January 4, 2007, February 27, 2008 and April 24, 2008 press releases or the full technical reports for the Mt. Todd Project. The press releases and full technical reports are available on Vista's website (www.vistagold.com). We expect to file on SEDAR a technical report for the updated resource estimate on or about February 27, 2009.
2008 Drilling Results
The 2008 drilling program consisted of fourteen holes with 9,006 meters drilled. Of the fourteen holes completed in this program, one was drilled to obtain a sample for ongoing metallurgical testing (hole VB08-041). Eleven holes were drilled to intersect the untested mineralization down-dip from the 2007 drilling located within the pit shape evaluated as part of the Preliminary Economic Assessment, the results of which were reported in Vista's January 4, 2007 press release. Two holes were drilled to test the continuity of mineralization below the previously evaluated pit shape (holes VB08-039 & -040). The results from the first ten holes were reported previously in Vista's press releases dated July 21, September 3, and November 12, 2008. Due to excessive deviation in the first 500 meters of its length, hole VB08-040 never intersected the orebody and was terminated. A summary of the gold assay and preliminary copper assay results of the last four holes are shown below:
Drill Interval Intercept Gold Copper Including Intercept Gold Copper
Hole (meters) (meters) (grams/ (ppm) (meters) (meters) (grams/ (ppm)
tonne) tonne)
VB08038 674-713 39 2.31 1427
VB08039 188-216 28 1.22 431
314-387 73 0.75 382 345-372 27 1.21 510
425-574 149 1.08 659 426-447 21 1.60 1092
528-567 39 1.69 763
VB08040 Drill hole deviated from ore zone
VB08041 6-64 58 0.87 654
The drilling program began in April 2008, under the direct supervision of Tim Tuba, Vista's Exploration Manager in Australia, and was completed in September 2008. The core drilling was 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. Sampling and assaying methods were 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. Frank K. Fenne, P.G., Vice-President of Exploration for Vista, who is a Qualified Person as defined by NI 43-101, has reviewed the program and results and confirms that all protocols used in the project conform to industry standards.
Pre-Feasibility Study
As announced in its November 12, 2008 press release, Vista awarded TetraTech of Golden, Colorado, the contract to undertake a preliminary feasibility study on the Mt. Todd Project. The first stage, which includes the updated resource estimate, metallurgical testing, rock mechanics evaluations, and preliminary geotechnical and environmental reviews, is nearing completion. The rock mechanic evaluation indicates that rock at Mt. Todd is exceptionally competent and recommends inter-ramp pit slopes of 55-60 degrees except on the east wall where an inter-ramp pit slope of 40 degrees is advised. The metallurgical studies are nearing completion with lab testwork currently in progress. The preliminary geotechnical field investigation has been completed. The site inspection for the preliminary review of the baseline environmental data has occurred and a draft report is in progress.
About Mt. Todd
The Mt. Todd Project is situated within the southeastern portion of the Early Proterozoic Pine Creek Geosyncline. The Batman deposit geology consists of a sequence of hornfelsed interbedded greywackes and shales with minor thin beds of felsic tuff. Bedding consistently strikes at 325 degrees, dipping 40 to 60 degrees to the southwest. Northerly trending sheeted quartz sulfide veins and joints striking at 0 to 20 degrees and dipping 60 degrees to the east are the major location for mineralization in the Batman deposit. The veins are 0.04 to 4 inches in thickness with an average thickness of around 0.4 inches and occur in sheets with up to 6 veins per horizontal foot. In general, the Batman deposit is 4,800 to 5,100 feet in length by 1,200 to 1,500 feet in true width and 1,500 to 1,800 feet in known down-dip extension (the deposit is open along strike and at depth).
The deposit has a drill hole spacing that varies from 80 feet by 80 feet to 260-330 feet by 260-330 feet and generally averages 160 feet by 160 feet. All assaying was by fire assay on 50-gram charges with atomic absorption ("AA") finish. Tetra Tech has advised Vista that quality control and quality assurance methods employed by the various companies working at Mt. Todd were standard at the time of the work. According to Tetra Tech, quality control and quality assurance methods for previous drilling programs has been audited several times by independent consultants.
The 2008 drilling program consisted of 14 core holes which resulted in a total of 7,367 assay intervals. In June, 2008, Mr. Rozelle audited the quality control and quality assurance methods implemented by Vista. Core was logged and cut under the direction of Vista's geologists and half-core segments were sent to independent labs in Adelaide (ALS Chemex) and Perth (ALS-Chemex) for sample preparation and fire assay analysis/AA analysis. Both labs prepared and analyzed a statistically significant number of duplicate samples. In addition to submitting commercially acquired blanks and standards, Vista submitted pulps for re-analysis to the opposing lab.
Earlier this year Vista completed preliminary tests using high pressure grinding rolls and the results indicated a reduction in crushing and grinding requirements compared to conventional technologies of approximately 30%. This was announced in Vista's press release dated November 10, 2008.
In addition to the Mining Licenses which contain the Batman deposit, Vista also holds a large exploration land package to the north and east of the Batman deposit.
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. Vista has undertaken programs to advance the Paredones Amarillos Project, located in Baja California Sur, Mexico, including a definitive feasibility study, the purchase of long delivery equipment items, and the purchase of land for the processing facilities, related infrastructure and the desalination plant. The results of a preliminary assessment completed in 2007 on the Mt. Todd Project in Australia were encouraging and Vista has subsequently undertaken other studies to advance the project. Vista's other holdings include the Guadalupe de los Reyes Project in Mexico, Yellow Pine Project in Idaho, 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, 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 conversion of inferred resources to measured and indicated resources, the potential for gold resources in the Batman deposit and other targets within the Mt. Todd project, the waste-to-ore ratio at Mt. Todd, the successful completion of a metallurgical testing program at Mt. Todd, the beginning of a Mt. Todd pre-feasibility study, future gold prices, future U.S.-to-Australian dollar exchange rates, the improved efficiencies of high pressure grinding roll technology, favorable effects of Mt. Todd project economics and Vista's ability to add value in a cost-effective manner and other such matters are forward-looking statements and forward-looking information. When used in this press release, the words "optimistic", "potential", "indicate", "expect", "intend", "hopes," "believe," "may," "will," "if" 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 resource estimate results estimates on which such results are based; risks relating to completing metallurgical testing and scheduling for pre-feasibility studies; risks relating to cost increases for capital and operating costs including cost of power; risks relating to delays at the Mt. Todd Project; risks of shortages of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning 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 and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. 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.
Without limiting the foregoing, this press release uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with NI 43-101 of the Canadian. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosures an issuer makes of scientific and technical information concerning mineral projects. All mineral resource estimates contained in this press release, including the terms "measured mineral resources," "indicated mineral resources" and "inferred mineral resources", have been prepared in accordance with NI 43-101, and these standards differ significantly from the requirements of the SEC. The resource information contained in this press release is not comparable to similar information disclosed by U.S. companies.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com/
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
Vista Gold Corp. Announces the Following Update on Activities at Its Paredones Amarillos Project
Vista Gold Corp. ("Vista") (TSX & NYSE-A: VGZ) announced on September 8, 2008, the results of a bankable feasibility study (filed with SEDAR on October 22, 2008) and provided an update on the permitting of the Paredones Amarillos Project. As previously announced (see press releases dated September 8 and July 2, 2008), Vista indicated that it had decided to apply for a new Change of Land Use Permit ("CUSF"). In a press release dated November 10, 2008, Vista indicated it was in final negotiations to purchase the land required for the process plant and tailings impoundment facility and had presented an application for a Temporary Occupation Permit ("TOP") for the use of the federal land which overlies the deposit. The land purchase and TOP are necessary pre-requisites for the CUSF application. On December 23, 2008, we reached agreement to purchase approximately 500 hectares of land for the mill site and other infrastructure. We have not yet received the TOP, which was expected by the end of 2008. Communications that our advisors have had with the office of the General Director of Mines of the Ministry of Economy (the department responsible for awarding the TOP) indicate that the approval process is proceeding normally, but at a slower pace than expected. Vista has already obtained the necessary environmental permit and completed the other prerequisite studies for the submittal of the CUSF permit application and will file that permit application as soon as the TOP is received.
On December 5, 2008, Vista completed another transaction to purchase the land for a desalination plant for the Paredones Amarillos Project. The property is located on the Pacific Coast, 25 kilometers SW of the Paredones Amarillos Project. The four-acre parcel of land is zoned for industrial use and approval has been received from the Municipality of La Paz for the installation of the desalination plant.
Fred Earnest, President and COO of Vista, commented, "The acquisition of the two parcels of land are important steps in the development of the project. We are disappointed that the process to acquire the Temporary Occupation Permit is taking longer than we had expected; however, we are using the time to undertake other critical path programs for the development of the project."
About Vista Gold
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 www.vistagold.com. Vista has undertaken programs to advance the Paredones Amarillos Project, including the completion of a definitive feasibility study and the purchase of long delivery equipment items for use at that project. A drilling program was completed on the Mt Todd project in 2008 and a new resource estimate is expected to be completed early in 2009. Metallurgical studies are underway and a new feasibility study is expected to be completed during 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.
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 the timing and receipt of required land use, environmental and other permits for the Paredones Amarillos Project; plans to confirm the validity of the Change of Land Use Permit and to obtain the Temporary Occupation Permit for the Paredones Amarillos Project and timing for confirmation of the status of such permits; plans for evaluation of the Mt. Todd Project including estimates of silver, copper and gold resources; preliminary assessment results; results of drilling programs and prospects for exploration and conversion of resources at the Mt. Todd Project and plans for a feasibility study at the Mt. Todd Project; Vista's future business strategy; plans; potential project development; Vista's potential status as a producer including plans, timing and targeted initial production levels; and other such matters are forward-looking statements and forward-looking 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 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 Project, including uncertainty relating to timing and receipt for required governmental permits; uncertainty relating to timing and receipt for confirmation of the validity of the Change of Land Use Permit for the Paredones Amarillos 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 Project and Mt. Todd Project; 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 and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. 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.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web Site: http://www.vistagold.com/
