Business
Vista Gold Announces Updated Mt Todd Preliminary Feasibility Study Showing Strong Returns At US$1300 Gold Price
DENVER, Jan. 24, 2018 /CNW/ -- Vista Gold Corp. ("Vista" or the "Company") (NYSE American and TSX: VGZ) today announced the positive results of an updated preli
About this update from Vista Gold Corp
[{"type":"text","content":"DENVER, Jan. 24, 2018 /CNW/ -- Vista Gold Corp. (\"Vista\" or the \"Company\") (NYSE American and TSX: VGZ) today announced the positive results of an updated preliminary feasibility study (the \"PFS\") for its Mt Todd gold project (\"Mt Todd\" or the \"Project\") in Northern Territory, Australia. The PFS is based on the results of a comprehensive review of all aspects of the Project and the re-design of elements of the process flow sheet, incorporating automated sorting and grinding circuit design changes in a 50,000 tonne per day (\"tpd\") project. The process improvement efforts have resulted in reduced operating costs, increased gold recovery and higher gold production at Mt Todd. Management of Vista believes that the design changes have allowed Vista to achieve a significant improvement in the Project's economics at the current gold price. 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. Unless otherwise specified, all $ amounts in this press release are expressed in US$. Highlights of the updated PFS include: Estimated proven and probable reserves of 5.85 million ounces of gold (221.0 million tonnes at 0.82 g Au/t) at a cut-off grade of 0.40 g Au/t, a decrease of 0.9% from the Company's May 2013 PFS(1); Average annual production of 382,211 ounces of gold per year over the life of the Project, including average annual production of 479,450 ounces of gold per year during the first five years of operations; Life of mine average cash costs of $645 per ounce, including average cash costs of $571 per ounce during the first five years of operations; A 13 year operating life; Initial capital requirements of $839 million; and After-tax NPV5% of $679.0 million and IRR of 20.5% at a $1,300 per ounce gold price with a $0.80:AUD1.00 exchange rate. (1) See Cautionary Note to United States Investors below. Vista's President and CEO, Frederick H. Earnest, commented, \"In 2016, we began an effort to review all aspects of the Mt Todd development plan, focused on improving the economics of the Mt Todd gold project. The results of this updated PFS demonstrate that Mt Todd is a robust project at today's gold price and foreign exchange rate. We believe it is a world class project that enjoys ...