Vista Gold Announces Mt Todd Gold Project Preliminary Feasibility Study and Increase in Reserve of 44% to 5.9 Million Ounces of Gold

 

Denver, Colorado, May 29, 2013

Vista Gold Corp. (“Vista” or the “Company”) (NYSE MKT and TSX: VGZ) today announced the positive results of a new preliminary feasibility study (the “PFS”) for its Mt. Todd gold project (the “Project”) in Northern Territory, Australia.  The PFS evaluates two development scenarios including a 50,000 tonne per day (“tpd”) project that develops more of the Mt. Todd resource (the “Base Case”) and generates a larger Net Present Value (“NPV”) and a smaller and higher-grade 33,000 tpd project that focuses on maximizing return and operating margins (the “Alternate Case”).  The PFS was authored by Tetra Tech Inc. with Mine Development Associates, Resource Development Inc., Proteus EPCM Engineers (a Tetra Tech Company),  and Power Engineers, Inc.

 

Highlights of the 50,000 tpd Base Case include:
·         Estimated proven and probable reserves of 5.90 million ounces of gold (223 million tonnes at 0.82 g Au/t) at a cut-off grade of 0.40 g Au/t, an increase of 44% from the Company’s January 2011 PFS;
·         Average annual production of 369,850 ounces of gold per year over the mine life, including average annual production of 481,316 ounces of gold per year during the first five years of operations;
·         Life of mine average cash costs of $773 per ounce, including average cash costs of $662 per ounce during the first five years of operations;
·         A 13 year operating life;
·         After-tax NPV_5% of $591.3 million and IRR of 15.9% at $1,450 per ounce gold prices, increasing to $876.6 million and 21.1%, respectively, at $1,600 per ounce gold prices; and
·         Initial capital requirements of $1,046 million.

 Highlights of the 33,000 tpd alternate case include:

·         Estimated proven and probable reserves of 3.56 million ounces of gold (124 million tonnes at 0.90 g Au/t) at a cut-off grade of 0.45 g Au/t;
·         Average annual production of 262,826 ounces of gold per year over the mine life, including average annual production of 294,502 ounces of gold per year during the first five years of operations;
·         Life of mine average cash costs of $684 per ounce, including average cash costs of $676 per ounce during the first five years of operations;
·         An 11 year operating life;
·         After-tax NPV_5% of $440.2 million and IRR of 16.9% at $1,450 per ounce gold prices, increasing to $615.6 million and 21.4%, respectively, at $1,600 per ounce gold prices; and
·         Initial capital requirements of $761 million.

 Frederick H. Earnest, President and Chief Executive Officer of Vista, commented, “The positive results of this PFS continue to demonstrate the quality and scale of the Mt. Todd gold project.  By completing the PFS analysis on two separate development scenarios, we are highlighting the flexibility we have in the development of this robust project.  We have the option to develop the mine most appropriate at the time a development decision is made.  Furthermore, the location of the project relative to local towns and labour markets and the infrastructure investments made by previous owners of this project provide potential construction and operating advantages relative to many gold projects.”

Mr Earnest continued, “During the balance of 2013, we will continue to advance the Mt. Todd gold project.  We will be working with the Northern Territory Government to address areas vital for the completion of a feasibility study and ultimately for a project development decision.  These discussions will be undertaken within the framework of Major Project Status, which the Territory has recently accorded Mt. Todd indicating the importance that the Territory places on its development.  The PFS results allow us to finalize and submit the Environmental Impact Study (“EIS”) in June.  We continue to anticipate environmental approvals for the project around year end.   Because of the advanced state of this study, with most technical work already at feasibility levels, we estimate that a feasibility study would require four months to complete and cost approximately $2.5 million.”

 For the full release: http://www.mttodd.com.au/content/vista-gold-announces-mt-todd-gold-project-preliminary-feasibility-study-and-increase-reserve