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Vista Gold Corp. Announces Canyon Resources Corporation Elects Not to Exercise Hycroft Option, New Hycroft Resource Estimate Reports 30% Increase in Measured and Indicated Gold Resources
Vista Gold Corp. Announces Canyon Resources Corporation Elects Not to Exercise Hycroft Option, New Hycroft Resource Estimate Reports 30% Increase in Measured and Indicated Gold Resources.
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\n\nDENVER, Aug. 4 /CNW/ -- Vista Gold Corp.\n(Amex: VGZ; Toronto) announces that Canyon Resources Corporation (Amex: CAU)\nhas advised Vista that Canyon will not be exercising its option to acquire the\nHycroft mine near Winnemucca, Nevada. In January 2005, Canyon entered into a\nsix month option agreement with Vista to expend US$0.5 million for drilling,\nengineering and due-diligence review to acquire the mine for US$4.0 million in\ncash plus US$6.0 million in Canyon equity units consisting of one common share\nand one warrant for half a share.\nCanyon completed a 33-hole drilling program totaling 12,475 feet and\nundertook a comprehensive study to restart operations at Hycroft. Assaying\nwas done by American Assay Laboratories of Sparks, Nevada. The drilling\nprogram confirmed average grades for the ore body but Canyon noted that\nincreased costs, as well as shortages of labor and large mining equipment were\ncontributing factors in its decision not to proceed. Vista received the data\nfrom Canyon's work at the time of notification and has not completed a review\nof all the information. However, a resource study in accordance with Canadian\nNational Instrument 43-101 guidelines was completed by Ore Reserves\nEngineering of Lakewood, Colorado, under the direction of Mr. Alan Noble, P.\nEng., a qualified person independent of Canyon or Vista.\nThe re-estimation of gold resources, based on 587 drill holes with a total\nof 52,889 assay intervals covering 267,280 feet, resulted in increasing the\nmeasured and indicated resources at the Brimstone deposit some 30% from the\nprevious estimate by Mine Development Associates of Reno, Nevada, as announced\nby Vista in September 2004. The inferred gold resources decreased slightly\nfrom the 2004 estimate to the current estimate. A comparison of the gold\nresource estimates is shown in the following table.\n\n\n\n Brimstone Gold Resources\n (0.005 opt cyanide-soluble gold cutoff grade)\n Mine Development Associates 2004\n\n Resource Short Fire Assay Contained\n Category Tons Gold Grade Gold Ounces\n (millions) (opt)\n Measured 1) 23.3 0.0165 385,100\n Indicated 1) 24.2 0.0153 369,400\n Total M&I 47.5 0.0159 754,600\n\n Inferred 2) 12 0.0111 133,600\n\n\n Brimstone Gold Resources\n (0.005 opt cyanide-soluble gold cutoff grade)\n Ore Reserves Engineering 2005\n Resource Short Fir...