DENVER, Oct. 18 /CNW/ -- Vista Gold Corp. (Amex: VGZ; Toronto) is pleased
to announce that, in connection with the preparation of a Management
Information and Proxy Circular to be delivered to its securityholders for the
meeting being held to approve matters relating to the previously announced
transaction that will result in the transfer of the Corporation's Nevada based
properties into a recently incorporated company and the acquisition by that
new company of the Nevada based mineral assets of Carl and Janet Pescio, it
has filed updated technical reports, prepared in accordance with Canadian
National Instrument 43-101, for six of the Nevada mineral properties to be
transferred by Vista to the new company, Allied Nevada Gold Corp. ("Allied
Nevada"), and new NI 43-101 compliant technical reports for 19 of the 53
Nevada mineral properties in which the Pescios currently hold interests.
There has been no material change in the information contained in the updated
technical reports for Vista's existing Nevada properties from information
disclosed in previous reports for those properties.
The updated technical reports for Vista's properties relate to the
Hycroft mine and the Wildcat, Maverick Springs, Mountain View, Hasbrouck and
Three Hills projects. The new technical reports for the properties underlying
the interests to be acquired from the Pescios relate to the Beowawe, Cobb
Creek, Dixie Flats, Dome, Wild Horse, Eden, Elder Creek, NAD, North Carlin,
North Mill Creek, Pony Creek, Switch, Six Mile, Toy, Tusk, Rock Creek, Santa
Renia, South Silver Cloud, Tonka and Woodruff properties. The reports may be
viewed on SEDAR at www.sedar.com under Vista Gold Corp. and also under Allied
Nevada Gold Corp.
In addition, Vista has filed an updated scoping study containing a
mineral resource analysis for the Amayapampa project, a project located 186
miles southeast of La Paz, Bolivia, that was completed on September 21, 2006
by GR Technical Services Ltd. of Calgary, Alberta and Giroux Consultants
Limited of Vancouver, British Columbia in accordance with Canadian National
Instrument 43-101. The Amayapampa project is being purchased by Luzon
Minerals Ltd. ("Luzon") under terms and amended terms previously disclosed in
press releases and summarized in Vista's 2005 annual report on Form 10-K. The
resource estimate was completed in September 2005 for Luzon under the
direction of Mr. G. H. Giroux, P.Eng., MA Sc., an independent qualified
person, utilizing standard industry software and resource estimation
methodology. The mineral resource data base contains 10,264 assay intervals
from 45 core drill holes, 96 reverse circulation drill holes, and underground
channel samples done by Da Capo Resources Ltd. and Vista between 1994 through
1997, with assaying by the Bondar Clegg laboratory in Oruro, Bolivia. The
results of the study indicates that the known Amayapampa deposit, at a cutoff
grade of 0.012 ounces gold per ton (0.4 grams per tonne), contains the gold
resources shown in the following table.
<<
Tons Tonnes Gold Gold Gold Ounces
(000's) (000's) (opt) (g/t) (000's)
Measured (1) 5,677 5,150 0.047 1.60 265
Indicated (1) 10,020 9,030 0.040 1.37 336
Inferred (2) 2,161 1,960 0.027 0.94 59
(1) Cautionary Note to U.S. Investors concerning estimates of Measured
Resources and Indicated Resources: This table uses the terms
"measured resources" and "indicated resources". We advise U.S.
investors that while these terms are recognized and required by
Canadian regulations, the U.S. Securities and Exchange Commission
does not recognize them. U.S. investors are cautioned not to assume
that any part or all of mineral deposits in these categories will
ever be converted into reserves.
(2) Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources: This table uses the term "inferred resources". We advise
U.S. investors that while this term is recognized and required by
Canadian regulations, the U.S. Securities and Exchange Commission
does not recognize it. "Inferred resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any
part of an inferred mineral resource will ever be upgraded to a
higher category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of a feasibility study or
prefeasibility studies, except in rare cases. U.S. investors are
cautioned not to assume that any part or all of an inferred resource
exists or is economically or legally minable.
>>
The Amayapampa project is located along the east flank of a north-south
trending regional anticline near the top of an Ordovician sequence of weakly
metamorphosed Ordovician black argillites, quartzites, and siltites. Bedding
dips are steep at 60 to 80 degrees west, with the east limb of the anticline
being overturned and thus, also dipping steeply west. Gold occurs free and
associated with sulfides in a northwest-trending structural zone in which
quartz veins were emplaced then sheared prior to introduction of sulfides and
gold mineralizing solutions. The overall dip of the mineralized envelope is 80
to 90 degrees to the west.
The mineral envelope is approximately 1,970 feet in strike length and 98
to 230 feet in width. The depth extent of continuous mineralization is in
excess of 656 feet, although some mineralization is present below this depth.
The deposit is defined by about 48 diamond drill holes; 96 reverse-circulation
drill holes; and 315 underground channel samples totaling 17,585 feet from
more than 200 accessible cross-cuts in 43 different levels and sub-levels
extending over a vertical distance of 682 feet.
The scoping study for the Amayapampa project may be viewed on SEDAR at
www.sedar.com under Vista Gold Corp.
Vista Gold Corp., based in Littleton, Colorado, evaluates and acquires
gold projects with defined gold resources. Additional exploration and
technical studies are undertaken to maximize the value of the projects for
eventual development. The Corporation's holdings include the Maverick
Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects, the F.W.
Lewis, Inc. properties and the Hycroft mine, all in Nevada, the Long Valley
project in California, the Yellow Pine project in Idaho, the Paredones
Amarillos and Guadalupe de los Reyes projects in Mexico, the Amayapampa
project in Bolivia, the Awak Mas project in Indonesia, and the Mt. Todd
project in Australia.
<<
Forward-Looking Statements
>>
This press release contains forward-looking statements within the meaning
of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934.
All statements, other than statements of historical facts, included in this
press release that address activities, events or developments that Vista
expects or anticipates will or may occur in the future, including such things
as future business strategy, competitive strengths, goals, expansion and
growth of Vista's or Allied Nevada's businesses, operations, plans and other
such matters are forward-looking statements. When used in this press release,
the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and
similar expressions are intended to identify forward-looking statements. The
statements made in this press release about the anticipated impact the
contemplated transaction described herein may have on the operations of Vista
or Allied Nevada, as well as the benefits expected to result from the
contemplated transaction, are forward-looking statements. Other
forward-looking statements include but are not limited to those with respect
to reserve and resource estimates and production costs. These statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Vista and Allied
Nevada, including anticipated consequences of the contemplated transaction
described herein, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, risks that Vista's or Allied
Nevada's acquisition, exploration and property advancement efforts will not be
successful; risks relating to fluctuations in the price of gold; the
inherently hazardous nature of mining-related activities; uncertainties
concerning reserve and resource estimates; potential effects on Vista's or
Allied Nevada's operations of environmental regulations in the countries in
which they operate; risks due to legal proceedings; uncertainty of being able
to raise capital on favorable terms or at all; and risks that may affect
Vista's ability to complete the proposed spin-off transaction including risks
that Vista may be unable to obtain required securityholder, court or third
party approvals; as well as those factors discussed in Vista's latest Annual
Report on Form 10-K and Quarterly Report on Form 10-Q and other documents
filed with the U.S. Securities and Exchange Commission. Although Vista has
attempted to identify important factors that could cause actual results to
differ materially from those described in forward-looking statements, there
may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be
accurate as actual results and future events could differ materially from
those anticipated in such statements. Vista assumes no obligation to publicly
update any forward-looking statements, whether as a result of new information,
future events or otherwise.
For further information, please contact Greg Marlier at (720) 981-1185,
or visit the Vista Gold Corp. website at www.vistagold.com.
