Vista Gold Corp. Announces Results of a Preliminary Economic Assessment and Increases Estimated Measured and Indicated Resources by 12.8% at Its Mt. Todd Gold Project, Northern Territory, Australia

About this update from Vista Gold Corp

[{"type":"text","content":"\n\n\n\n\n\n\n\n\nDENVER, June 4 /CNW/ -- Vista Gold Corp. ("Vista") (TSX & NYSE Amex\nEquities: VGZ) is pleased to announce the results of a Preliminary Economic\nAssessment ("PEA") for the Batman deposit at the Mt. Todd gold project in\nNorthern Territory, Australia. The PEA reflects the technical studies which\nVista has undertaken since the issuance of the initial PEA on December 29,\n2006, including over 18,000 meters of diamond drilling, a two-year\nmetallurgical program which included crushing and grinding, flotation and\nleach testwork, mine design and various preliminary engineering studies and\ncost estimates. The PEA was prepared by TetraTech Inc. of Golden, Colorado,\nunder the direction of Mr. John Rozelle, an independent qualified person under\nCanadian National Instrument 43-101 ("NI 43-101").\n\n\nThree potential operating scenarios were evaluated using a gold price of\n$750 per ounce (three year running average), an exchange rate of US$1 = A$1.35\nand first quarter 2009 costs. The results of the PEA indicate that development\nof the base case alternative would have an estimated cash cost of $453 per\nounce and a pre-tax Internal Rate of Return ("IRR") of 21.6%. The total gold\nmined over the 15.2 year mine life is estimated to be 4,526,000 ounces, with\nan estimated annual production of 245,500 ounces (with average production over\nthe first three years of 296,700 ounces). The PEA estimated that an economic\ngold cut-off grade of approximately 0.4 grams gold per tonne should be\nemployed which results in a 12.8% increase (579,000 ounces) in Measured and\nIndicated Resources(1).\n\n\nFred Earnest, President and COO of Vista, stated, "The results of the PEA\nare very encouraging and follow two years of successful exploration programs\nand a comprehensive metallurgical test program. The Mt. Todd project has\ngrown considerably since our acquisition of the project and we are confident\nthat there is potential for continued substantial growth in resources. The\nresults of the PEA are positive with an IRR of 21.6% at long-term gold prices\nof US$750 per ounce and an IRR of 37.7% at a US$950 gold price. We plan to\nadvance the project as a matter of priority and are progressing towards the\ncompletion of the pre-feasibility study which we anticipate will enable the\nesti...

More updates from Vista Gold Corp