Vista Gold Corp. is an international gold mining company with a plus 20-year
history of gold exploration, development and operations. Vista is traded on both
the TSX and AMEX under the symbol VGZ. The Company has a strong retail
investor following and as market capitalization continues to grow, there is
increasing fund and institutional interest.
Since 2001, Vista has pursued a strategy of accumulating and improving high
quality gold resources in low risk environments. As the projects were acquired
at times of lower gold prices, Vista is currently undertaking technical programs
to advance the projects to the point where decisions can be made to put them into
production, either by the Company or through a sale to, or joint venture with
another mining company. These programs include strategic drilling; updated
resource and reserve estimates; and/or engineering, design and feasibility studies,
which, in addition to advancing the projects, also adds value and reduces the risks
associated with future potential development.
Vista controls six properties containing 10.3 million measured and indicated
gold resource ounces and 3.9 million inferred gold resource ounces. These
resource ounces were determined by studies completed by independent
consultants. (Dollars referenced below are U.S. dollars).
Paredones Amarillos, Mexico- The Paredones Amarillos Project, in Baja California Sur, Mexico, contains 1.9 million ounces of measured and indicated gold resources and 140,000 ounces of inferred gold resources. In January 2008, Vista announced the purchase of key processing equipment for the project. Vista management believes that the purchase of this used equipment now, in addition to anticipated significant capital cost savings, will save 12-18 months over the time required for the delivery of similar new equipment. Vista completed a preliminary feasibility study in September 2005 (see Vista's press release of September 26, 2005), which was updated in June 2007 (see Vista's press release of June 21, 2007) to reflect 1st quarter 2007 cost parameters. Capital and operating cost estimates were updated in February 2008, based on a whole-ore leach process flowsheet, at $169.1 million for preproduction capital and preproduction development costs, and the operating costs are estimated to be approximately $12.53 per tonne of ore processed. Vista intends to complete a definitive feasibility study in the third quarter of 2008, following which the Company intends to announce a production decision once financing is in place.
Mt. Todd, Australia – In June 2006, Vista completed the acquisition of the Mt. Todd gold mine in the Northern Territory, Australia, for $2.1 million and completed a resource estimate using an independent consultant. Measured and indicated gold resources are 1.8 million ounces and inferred gold resources are 1.5 million ounces.
A preliminary assessment completed in December 2006 projected a 10-year mine life at a production rate of 30,000 tpd with operating costs estimated at $391 per ounce, producing 266,000 ounces of gold annually. The project would require initial capital estimated at $264 million.
The Mt. Todd project continues to show good exploration potential. A drilling program conducted in the Spring of 2007 was successful in adding ounces to the Mt. Todd resource, increasing measured and indicated resource estimates by 65% to 2.9 million ounces of gold. During the 2008 drilling progam, Vista plans to complete more than 5,000 meters of core drilling with the goals of increasing the estimated measured and indicated gold resources and testing the lower areas of the Batman deposit for higher grade mineralization. Vista plans to fast-track the project to a production decision by beginning a pre-feasibility study.
Yellow Pine, Idaho - Located in Valley County, Idaho, this project contains measured and indicated gold resources of 2.2 million ounces and inferred gold resources of 819,000 ounces. The property has excellent potential for expansion laterally and at depth. A preliminary economic assessment completed in December 2006 projects a 10-year mine life (8,600 tpd plant), producing 190,000 ounces of gold a year. Initial capital costs at Yellow Pine were estimated at $150 million. Once in production, the net cash flow to Vista is estimated at $266 million (based on a gold price of $630 an ounce). Vista is planning to begin collecting baseline environmental data in 2008 for permitting.
Awak Mas, Indonesia - The Awak Mas gold deposit located in Sulawesi, Indonesia, contains measured and indicated gold resources of 1.7 million ounces and inferred gold resources of 539,000 ounces. Vista acquired the project for $1.5 million in May 2005. The project has undergone significant exploration, drilling and feasibility studies by major companies from 1991 through 1997 with over $40 million spent on the property. In late 2006, Vista completed a drilling program, a new resource estimate in June 2007 and a Preliminary Assessment in January 2008. Vista plans to begin a feasibility study in 2008.
Long Valley, California - Long Valley is an epithermal deposit located 30 miles northwest of Bishop in Mono County, California. Measured and indicated gold resources stand at 1.2 million ounces plus 0.6 million inferred gold ounces. Some 880,000 gold ounces are in near-surface oxide material. There are numerous exploration targets to expand the resource base. Vista completed a Preliminary Assessment of the project in January 2008 which indicated the project could be viable as a heap-leach operation at gold prices above $550 per ounce.
Guadalupe de los Reyes, Mexico - This project, located in the Sierra Madre Range, contains measured and indicated resources of 485,000 gold ounces and inferred resources of 316,000 gold ounces with significant silver credits. In January 2008, Vista completed an acquisition that consolidated all of the known gold and silver resources in the district under Vista's ownership.
