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Vista Gold Announces Updated Preliminary Feasibility Study for the Mt Todd Gold Project with Increased After-Tax NPV5% of $823 Million and IRR of 23.4%
DENVER, Sept. 10, 2019 /CNW/ -- Vista Gold Corp. ("Vista" or the "Company") (NYSE American and TSX: VGZ) today announced the positive results of an updated prel
About this update from Vista Gold Corp
[{"type":"text","content":"DENVER, Sept. 10, 2019 /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 metallurgical optimization test work, a redesign of the fine grinding circuit, construction and ramp-up schedule changes and a comprehensive review of all aspects of the Project, including an independent benchmarking study of key PFS parameters. The process improvements have resulted in improved projected gold recovery and increased estimated gold production at Mt Todd. All dollar amounts stated herein are in United States currency and are expressed as $ unless specified otherwise. References to A$ are to Australian dollars. Highlights of the PFS for a 50,000 tonne per day (\"tpd\") project include: After-tax NPV5% of $823 million and IRR of 23.4% at a $1,350 per ounce gold price and a $0.70=A$1.00 exchange rate (the \"Base Case\"); After-tax NPV5% of $1.15 billion and IRR of 30.3% at current prices and exchange rates ($1,500 per ounce gold and $0.685=A$1.00 exchange rate); Unchanged proven and probable mineral reserves estimated to be 5.85 million ounces of gold (221.0 million tonnes at 0.82 grams of gold per tonne (\"g Au/t\")) at a cut-off grade of 0.40 g Au/t(1); Improved estimated annual production of 413,400 ounces of gold per year over the life of the Project, including estimated average annual production of 495,100 ounces of gold per year during the first five years of commercial operations; Life of mine projected average cash costs of $645 per ounce, including projected average cash costs of $575 per ounce during the first five years of commercial operations (life of mine average all-in sustaining cost (\"AISC\") of $746 per ounce, including average AISC of $688 per ounce during the first five years of commercial operations); A projected 13-year mine life; and Estimated initial capital requirements of $826 million. (1) See \"Cautionary Note to United States Investors\" below. Vista's President and CEO, Frederick H. Earnest, commented, \"We believe the PFS has substantially de-risked Mt Todd. The metallurgical programs and process area design changes completed by Vista o...