Vista Gold Corp. is an international gold mining company based in Littleton, Colorado, with a plus 20-year history of gold exploration, development and operations. Vista is traded on both the TSX and NYSE Amex under the symbol VGZ. Since 2001, Vista has correctly predicted that gold prices would significantly increase for many years to come, and has acquired a number of impressive gold projects during 2001-2006. During 2006 and 2007, Vista completed transactions that resulted in the formation and successful spin-off to its shareholders of Allied Nevada Gold Corp. Since the spin-off Vista has sold one project and currently holds six projects with an estimated 1.3 million ounces of proven and probable reserves, 12.8 million ounces of measured and indicated resources and 4.6 million ounces inferred. 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. Vista's other holdings include the Yellow Pine gold project in Idaho, Guadalupe de los Reyes gold project in Mexico, Long Valley gold project in California, and Awak Mas gold project in Indonesia.
Vista controls six properties with an estimated 1.3 million ounces of proven and probable reserves, 12.8 million measured and indicated gold resource ounces and 4.6 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- Vista continues to work through the permitting process at the Paredones Amarillos gold project, located in Baja California Sur, Mexico. 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.”
The Paredones gold project is located in a special use area within the buffer zone of the Sierra Laguna Biosphere Reserve. As previously reported, earlier in 2008 Vista announced that it had received correspondence from the local La Paz office of the Mexican Environmental and Natural Resource Service (“SEMARNAT”) which indicates that staff in that office are of the opinion that the Change of Forest Land Use Permit (“CUSF”) approved by SEMARNAT in 1997 in relation to the Paredones Amarillos gold project is no longer valid. Vista's advisors and counsel in Mexico were of the opinion that the permit remained valid; however, they also advised Vista that a new CUSF application would be the most expeditious way to obtain the necessary approvals. The application for a new CUSF requires as a prerequisite appropriate authorization or ownership of the surface affected by the CUSF permit. Vista has acquired the surface for the processing facilities, related infrastructure and the desalination plant. Vista announced on October 28, 2009 that its subsidiary, Minera Paredones Amarillos S.A. de C.V. (“MPA”) received the Temporary Occupation Permits (one for each of the seven mining concessions that cover the area of the Paredones Amarillos gold project) which formally grants 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 had all of the documents necessary and filed for the CUSF.
In a press release on February 19, 2010, Vista announced that MPA received notice from SEMARNAT that SEMARNAT has dismissed, on administrative grounds, MPA's application for the CUSF. Specifically, SEMARNAT dismissed the CUSF application, without a review of its substantive merit, for MPA's alleged failure to satisfy certain procedural and informational requirements. The dismissal also raised a number of important issues including the validity of the Temporary Occupation Permits, which the Company is working with its advisors and the Mexican federal government to resolve. The CUSF is required before the Company can commence construction of the Paredones Amarillos gold project. The Company is currently amending its CUSF application to address SEMARNAT's specific procedural and informational requirements and intends to re-file the application, when all application requirements are clarified.
In addition to re-filing its CUSF application, the Company is working with its legal counsel and political experts in Mexico on a broader strategy for the advancement of the permitting process for the Paredones Amarillos gold project. This includes a potential court challenge to SEMARNAT's dismissal of the CUSF application as the Company's advisors believe the legal basis for the dismissal was incorrect. The Company will continue to provide information and updates as they become available, but Vista expects the dismissal of the CUSF application will delay the commencement of construction, development and production of the Paredones Amarillos project.
Mt. Todd, Australia –
In a press release on December 22, 2009, Vista announced that it has mobilized three drill rigs to its Mt. Todd gold project in Northern Territory, Australia, in anticipation of commencing a 14,000 meter drilling program.
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 to measured and indicated resources 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 Vista's website under the Properties tab and 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.
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). Currently, Vista is developing a plan to begin collecting baseline environmental data for permitting.
Guadalupe de los Reyes, Mexico -
This project, located in Sinaloa, Mexico, contains measured and indicated resources of 484,000 gold ounces and inferred resources of 316,800 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. Since consolidating its position in the district, a technical study was completed in August 2009 to update the mineral resources to include the land acquired. The study is entitled “Technical Report for the Guadalupe de los Reyes Gold-Silver Project, Sinaloa, Mexico.” The report is available on Vista's website under the Properties tab and on SEDAR at www.sedar.com.
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.
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 US$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 US$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 signed a Joint Venture Agreement with Pan Asia Resources Corporation with respect to the development of the project.
