Vista Gold Commences Definitive Feasibility Study for the Mt Todd Gold Project, and Advances Other Key Programs
http://www.vistagold.com/news/news-2021/711-istaoldommencesefinitiveeasibilitytudyforthet20210721035004
"DENVER, July 21, 2021 (GLOBE NEWSWIRE) -- Vista Gold Corp. (“Vista” or the “Company”) (NYSE American and TSX: VGZ) today announced that it has commenced work to complete a feasibility study (“FS”) for its 100% owned Mt Todd gold project (“Mt Todd” or the “Project”) in Northern Territory, Australia. Tetra Tech has been engaged to lead the FS, which is expected to be completed in the first quarter of 2022. The FS and other key programs are expected to increase reserves and mine life, further validate the Mt Todd design and economics, and demonstrate district-scale potential within the Company’s mining licenses.
Frederick H. Earnest, President and CEO of Vista, commented, “This year, we have concluded important de-risking activities and achieved important milestones with the approval of the Mine Management Plan and other permits. At the same time, we have continued working to realize greater value from Mt Todd through technical programs, exploration, and partnering initiatives. In addition to extending our exploration program, we recently started the engineering and design work to complete an FS for Mt Todd. These programs have estimated combined budgets of approximately US$5 million. While we have continued to make good progress on the ground in Australia, our efforts to advance a partnership for the development of Mt Todd have been slowed by international travel restrictions to Australia. With the expectation that travel restrictions will be lifted next year, we have a window of opportunity and intend to complete the FS and additional exploration drilling within that window. We believe these programs will unlock significant value as we move forward in the process of identifying the right partner for the development of Mt Todd and maximizing value for our existing shareholders. These programs and other activities geared toward achieving a partnership for the development of Mt Todd are now funded, as a result of the recently closed offering for US$13.5 million.”
Feasibility Study
Most of the engineering work for Mt Todd has previously been completed to feasibility study standards. The Company has commenced the work of completing the remaining feasibility engineering in the process plant (piping, electrical, and instrumentation), updating project designs to be consistent with the recently approved Mine Management Plan, and completing an economic evaluation using a gold price more reflective of the current market price. Due to the conservative US$1,000 gold price used to estimate reserves in the Company’s most recent preliminary feasibility study, redesigning the pit at a higher gold price is expected to enhance value by increasing the estimated reserves and extending the life of the mine by incorporating a greater portion of the currently defined measured and indicated resources into the mine plan.
In addition to Tetra Tech, other consultants have been awarded contracts to undertake parts of the FS, including: Tetra Tech Proteus (formerly Proteus Engineers), RESPEC (formerly Mine Development Associates), and Power Engineers.
Exploration Drilling Program
The Company’s exploration program is successfully demonstrating the potential to increase the estimated mineral resources at Mt Todd with the appropriate future in-fill drilling. The exploration program is expected to continue through the remainder of this year. Every hole drilled as part of this program has intersected mineralization and added to our understanding of the continuity of mineralization within the structural corridor that hosts the Batman deposit. Our goal is to demonstrate the district resource potential of the portion of the Batman-Driffield Trend north of the Batman deposit and outline areas where future in-fill drilling can be undertaken to define additional gold resources.
Given the success of the current drill program, Vista is planning additional holes for a third phase of drilling totaling approximately 3,000 meters. Among the preliminary objectives of the next phase will be to test the lateral connectivity of the parallel north-south and cross cutting structures.
Strategic Partner
We embarked on a process to investigate partnering opportunities in the fourth quarter of 2020. The process has been slowed by COVID-19 uncertainties and international travel restrictions. We are continuing to engage with several companies in technical assessments and early-stage partnering discussions. Our technical work programs and the approval of all major permits provide a solid basis to move forward with prospective development partners. As we pursue a strategic development transaction that reflects the inherent value of Mt Todd to Vista’s shareholders, we continue to focus on our strategy to further improve the economic potential of the Project and increase shareholder value in a cost-effective manner.
About Vista Gold Corp.
Vista is a gold project developer. The Company’s flagship asset is the Mt Todd gold project located in the Tier 1, mining friendly jurisdiction of Northern Territory, Australia. Situated approximately 250 km southeast of Darwin, Mt Todd is the largest undeveloped gold project in Australia and, if developed as presently designed, would potentially be Australia’s fourth largest gold producer on an annual basis, with lowest tertile in-country and global all-in sustaining costs. All major operating and environmental permits have now been approved.
For further information, please contact Pamela Solly, Vice President of Investor Relations, at (720) 981-1185."