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[STK] AMEX:VGZ Toronto:VGZ
[IN] MNG MIN PRM
[SU]
TO BUSINESS EDITORS:
Vista Gold Corp. Provides Update On Mt. Todd Gold Project (Agreement
With Northern Territory Extended & EIS Permitting Progress) And
Announces An Update For The Quigleys Deposit
DENVER, Feb. 26, 2014 /PRNewswire/ -- Vista Gold Corp. ("Vista" or the
"Company") (NYSE MKT and TSX: VGZ) announced today that its agreement
with the Northern Territory of Australia (the "Agreement") for the Mt.
Todd gold project has been extended for an additional three-year
period to December 2018. Additionally, the Company provided an update
on the EIS permitting process and announced an updated resource
estimate for the Quigleys deposit, a satellite deposit to the Mt. Todd
gold project.
Extension of Mt. Todd Agreement by the Northern Territory of Australia
On February 19, 2014 the Northern Territory of Australia extended its
agreement with Vista for the Mt. Todd gold project. The Agreement
will now extend through the end of December, 2018. Vista's President
and CEO, Fred Earnest, commented, "The advanced stage of our technical
studies together with this three-year extension give us sufficient
time to make a development decision at the Mt. Todd gold project,
provided gold prices improve. The extension of the Agreement is
indicative of Vista's and the Northern Territory Government's desire
to see the Mt. Todd gold project successfully developed."
Mt. Todd Environmental Impact Study (EIS) Update
The Mt. Todd EIS is expected to be approved in the 3rd quarter of
2014.
As previously announced, the EIS was formally presented to the
Environmental Protection Authority of the Northern Territory ("EPA")
in June 2013. Review by the EPA and the prescribed public
consultation process resulted in a series of comments to which the
Company provided comprehensive responses in late October 2013. In
late November 2013, Vista received a request for additional
information on several topics. Draft responses were prepared and
submitted in January 2014. Through regular communication with the
EPA, the Company has been advised that it has adequately responded to
all but two topics: (1) the long-term stability of the waste rock dump
and its ability to shed water in its reclaimed state; and (2) the
potential effect that the expanded Batman pit may have on the Gouldian
Finch habitat and nesting areas. Fred Earnest, commented, "We expect
to be able to respond to the questions raised about the waste rock
dump by the end of this month, and we have reached consensus with the
EPA regarding a field study to be completed in April and May with
respect to the Gouldian Finch questions. We expect the results of
this study to be submitted to the EPA in June of this year. We are
optimistic that this will clear the path for final approval of the EIS
for the Mt. Todd gold project in the third quarter of 2014."
Quigleys Deposit Updated Resource Estimate
In addition to the extensively studied Batman deposit, Vista's mining
licenses at the Mt. Todd project are host to the Quigleys deposit, a
satellite deposit that has the potential to be an additional source of
ore for the Mt. Todd gold project. To date, Vista has not undertaken
the metallurgical testing and mine planning to be able to include the
Quigleys deposit in its economic evaluations of the Mt. Todd gold
project, but recent geologic work has provided new information.
During the 4th quarter of 2013, Vista undertook a re-evaluation of the
Quigleys deposit's geology, mineralizing controls, and estimated
resources utilizing the knowledge gained over the past seven years
from our analysis of the Batman deposit. This work was completed by
Tetra Tech of Golden, Colorado, under the supervision of Dr. Rex
Bryan, Qualified Person. This resource update was based on a
comprehensive re-logging of available reverse circulation (RC) chips
and drill core (core) which was led by Mr. Peter Harris, Manager of
Geology at Mt. Todd, of Vista Gold Australia. The initial assay
domain assignments were provided to Tetra Tech from the Vista Gold
Australia geologic staff. Upon entry into the modeling software and
review, several changes to the initial shapes were suggested, and
after consultation with the Vista Gold Australia geologic staff, were
made; however, the final overall shapes are very similar to those
originally proposed by the Vista Gold Australia geologic staff.
This update differs from the previous estimation for the Quigleys
deposit in the following ways, all which contribute to an increase in
estimated resource grade:
-- Three additional diamond core holes that extended the resource
down-dip and have intercepts considerably higher than the expected
cutoff grade,
-- Mineral domains have been modeled as thinner and more discrete,
-- Domains have been modeled as sharp boundaries. Waste on the edges
of the domains has been removed, through hole by hole review and
'snapping' to drill hole assay intercepts,
-- The previous resource was modeled as one domain through the main
body of the anticline where this update has modeled the anticline as
two separate geologic domains and removed the internal waste,
-- The previous model used all composites in a single domain model to
vote for blocks within the single domain given they were within the
search ellipsoid, where this model has several domains that are only
permitted to use composites to inform grade within their corresponding
domain,
-- This update utilizes a smaller block size and sub-blocks to best
mimic the complex shape of the domain model.
Based on the above described changes and refinements, the estimated
mineral resources of the Quigleys deposit is as shown in Table 1.
Table 1: Estimated Resources at 0.4 g Au/t Cutoff
Resource Class Cutoff (g Au/t) Tonnage (x1000) Grade (g Au/t) Ounces Au (x1000)
Measured 0.4 623 1.14 23
Indicated 0.4 7,834 1.10 276
Measured + Indicated 0.4 8,457 1.10 299
Inferred 0.4 11,177 1.13 407
* See Cautionary Note to U.S. Investors Regarding Estimates of Mineral
Resources below.
Vista does not deem the estimated quantity of resources to be
materially different than previously reported quantities. What has
changed is our understanding of the geology and mineralizing hosts
which has resulted in a "more realistic" understanding of the deposit
and will therefore be used as a guide for future exploration programs.
Fred Earnest added, "The Quigleys deposit represents an opportunity to
optimize the economics of the Mt. Todd gold project by providing a
source of higher grade ore in the early years of the life of the
project. While we have yet to complete the appropriate metallurgical
testing to confirm compatibility with the flowsheet selected for the
Batman deposit, we are encouraged by the work recently completed to
better define the geologic resource."
The scientific and technical information disclosed in this press
release has been reviewed and approved by Mr. John Rozelle, a Senior
Vice President of Vista and a qualified person (as defined by Canadian
National Instrument 43-101).
For additional information on the Mt. Todd gold project, see our
technical report entitled "NI 43-101 Technical Report - Mt. Todd Gold
Project, 50,000 tpd Preliminary Feasibility Study, Northern Territory,
Australia" dated with an effective date of May 29, 2013 and an issue
date of June 28, 2013.
About Vista Gold Corp.
Vista's principal assets include its flagship Mt. Todd gold project in
Northern Territory, Australia, and a 12.4% holding in Midas Gold Corp.
In addition to non-core projects in Mexico and California, Vista holds
royalty interests in projects in Bolivia and Indonesia. For more
information about our projects, including technical studies and
resource estimates, please visit our website at www.vistagold.com.
Forward Looking Statements
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, we have sufficient time to make a
development decision at the Mt. Todd gold project, the timing for
anticipated EIS approval, our ability and the anticipated timing to
respond to questions raised by the EPA, anticipated timing to complete
the Gouldian Finch study, estimated mineral resources, our
understanding of the Quigleys deposit, use of updated information, the
Quigleys deposit is a source of higher grade ore that will be used in
the early years of the project and other such matters are
forward-looking statements and forward-looking information. The
material factors and assumptions used to develop the forward-looking
statements and forward-looking information contained in this press
release include the following: mineral reserve estimates, terms and
conditions of our agreements with contractors and our approved
business plans, management's assessment of potential transactions and
strategic options, and the Company's assessment of the questions
raised by the NT EPA and an improvement in the gold price. When used
in this press release, the words "optimistic," "potential,"
"indicate," "expect," "intend," "plans," "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, ability to work with
the NT EPA to settle any questions raised, risks that additional
studies may need to be conducted or that studies will not be completed
within expected timelines, uncertainty of resource and reserve
estimates, estimates of results based on such resource and reserve
estimates; risks relating to completing metallurgical testing; risks
relating to cost increases for capital and operating costs; risks
related to the timing and 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; as well as those factors discussed under the headings "Note
Regarding Forward-Looking Statements" and "Risk Factors" in Vista's
Annual Report Form 10-K as filed on March 14, 2013 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.
Cautionary Note to U.S. Investors Concerning Estimates of Mineral
Resources
The United States Securities and Exchange Commission ("SEC") limits
disclosure for U.S. reporting purposes to mineral deposits that a
company can economically and legally extract or produce. This press
release uses the terms "Measured resources," "Indicated resources,"
and "Measured & Indicated resources." We advise U.S. investors that
while these terms are Canadian mining terms as defined in accordance
with NI 43-101, such terms are not recognized under SEC Industry Guide
7 and are normally not permitted to be used in reports and
registration statements filed with the SEC. 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 all
necessary permits and government approvals must be filed with the
appropriate governmental authority. Mineral resources described in
this press release have a great amount of uncertainty as to their
economic and legal feasibility. 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. "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 resource will
ever be upgraded to a higher category. U.S. Investors are cautioned
not to assume that any part or all of mineral deposits in these
categories will ever be converted into SEC Industry Guide 7 reserves.
For further information, please contact Connie Martinez at (720)
981-1185, or visit the Company's website at www.vistagold.com.
SOURCE Vista Gold Corp.
-0- 02/27/2014
/Web Site: http://www.vistagold.com
(AMEX:VGZ /
Toronto:VGZ) /
CO: Vista Gold Corp.
ST: Colorado
IN: MNG MIN PRM
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