In 2006, we acquired 100% of the Mt. Todd gold project in Northern Territory for $2.1 million, which equated to a cost of $0.66 per ounce of gold acquired. The Mt. Todd gold project is Vista's flagship project. Since acquisition, the Company has drilled over 48,000 meters and added significantly to the resource base of the project. In January 2011, Vista announced the results of a preliminary feasibility study which contemplated a 30,000 tonne per day processing facility with estimated average gold production of approximately 240,000 ounces of gold per year. Proven and probable reserves were estimated to be 4.1 million ounces of gold comprised of 149.9 million tonnes with an average grade of 0.85 g/t. In September 2011, Vista announced the results of a new resource estimate for the Mt. Todd gold project and in November 2011 initiated a resource conversion drilling program. In September 2012, Vista announced the results of a new resource estimate with 7.0 million ounces measured and indicated and 2.0 million ounces inferred resources. Recently, Vista announced that, after completing a scoping study to assess the optimal size for the project process facilities, it has adopted a 2-stage development strategy for Mt. Todd. Vista plans to initially construct a 30,000 tpd plant and raise the cut-off grade to 0.5 g Au/t to minimize initial capital requirements and shorten the payback period. Subsequently, the Company intends to expand the project to 45,000 tpd and lower the cutoff grade to 0.4 g Au/t to take full advantage of Mt. Toddís large and growing resource. Resource conversion drilling is winding down and is expected to finish in November 2012. Vista intends to complete a preliminary feasibility study in Q1 2013 and subsequently complete a new resource estimate and feasibility study with final results in the Q2 of 2013. Vista continues to work with the NT Government to permit Mt. Todd as expeditiously as possible.
The Mt. Todd gold project is "brownfield development" with significant existing infrastructure including paved access from the major transportation corridor, a natural gas pipeline to site and medium-tension power lines for power generation, a fresh water reservoir and water treatment plant, readily available labor and technical personnel. The Northern Territory government is supportive of new mineral developments and there are no Aboriginal rights issues associated with the project.
The Mt. Todd gold project has significant exploration and district expansion potential across the projectís more than 1,176 km2 of exploration licenses.