DENVER, June 28, 2017 /CNW/ -- Vista Gold Corp. (the
"Company," "Vista Gold," "we" or "our") (NYSE MKT: VGZ) (TSX: VGZ)
today provided an update on the status of its metallurgical testing
program on four bulk samples from the Mt Todd gold project.
The Company also announced that its agreement with the Northern
Territory of Australia ("NT") has
been extended through December 31,
2023.
Metallurgical Testing Program
In November 2016, Vista Gold
announced the preliminary results of detailed optimization studies
for its Mt Todd gold project located in the Northern Territory,
Australia. The results indicated potential to further enhance
the project's economics through the incorporation of selective
screening and sorting in the processing flow sheet to enable finer
grinding, enhanced gold recovery, and lower processing costs. (See
our press release dated November 28,
2016).
Vista Gold's President & CEO, Frederick H. Earnest, commented, "We have
recently commenced metallurgical tests on four, 5-tonne bulk
samples from Mt Todd. These tests are designed to confirm
that the project can reduce the volume of material to be milled and
improve efficiency in the grinding circuit through a combination of
producing smaller material in the HPGR crushing circuit and the
change to a two-stage grinding circuit. We believe these
design changes can be implemented without materially changing the
project's capital requirements. Past studies have shown a
strong correlation between finer grinding and higher gold recovery,
and we believe that we have been conservative in our previous gold
recovery estimates at a finer grind. We look forward to the
results from this test work and their incorporation into an updated
preliminary feasibility study, which will be the first
comprehensive update of the project since 2013."
In February of this year, the Company completed the drilling and
logging of approximately 1,700 meters of PQ (3.75" diameter) core
to obtain four, 5-tonne bulk samples of ore representing different
parts of the deposit. The samples were shipped to
Germany to be crushed and screened
(at 5/8") at Thyssen Krupp Industries' HPGR test facility.
This work started last week and two of the four bulk samples have
been completed. Based on this work, the Company expects that
approximately 18% of each HPGR-crushed sample will be retained as
plus 5/8" material ("coarse fraction").
TOMRA Sorting Solutions, near Hamberg, will next undertake
two-step automated sorting tests designed to separate the
gold-bearing sulfide minerals and quartz veining from non-gold
bearing waste material in the coarse fractions. The first
step (XRT) sorts the material by density to target the gold-bearing
sulfide material. The second step (Laser) separates the gold
bearing quartz veining material. Eliminating non-gold bearing
waste material, after the HPGR and prior to the grinding circuit,
would enable Vista Gold to reduce the overall material going to the
grinding and leaching circuits, improve the grinding circuit
head-grade and capture potential reductions in operating costs
associated with the lower overall feed to the mill. The
automated sorting tests are scheduled to take place July 5th-7th.
Following the TOMRA test work, the fine fraction (minus 5/8"
material) together with the three components of the coarse fraction
(XRT, Laser and waste) will be shipped to the laboratories of
Resource Development Inc. (RDi) in Wheatridge, Colorado where grind-size and leach recovery
optimization and tailings characterization studies will be
completed. The results of these tests are expected to provide
the design criteria to grind the ore finer for enhanced leaching
and gold recovery.
The Company expects to be able to announce the final results of
the test work at the end of August 2017.
Following the completion of the crushing, screening and sorting
components of the metallurgical testing program the Company expects
to commence the studies needed to update its previously published
Mt Todd Preliminary Feasibility Study (completed May 2013 and amended July 2014). The PFS
update is expected to include design changes incorporating an
automated sorting circuit, two-stage grinding, and current gold
price and foreign exchange rates.
Extension of Agreement with the Northern Territory
Recently, the Company signed an extension of its agreement with
the Northern Territory of Australia. The agreement extends
through December 31, 2023 and
includes the option for an additional 3-year extension. Under
the ongoing terms of the agreement, the Company holds the exclusive
right to develop the Mt Todd gold project and commits to the
appropriate care and management of the site, and prior to providing
notice of its intention to mine, the Company retains no
environmental liability for the condition of the site prior to its
involvement in 2006. Vista Gold, at its sole option, may
elect to proceed with the development of the project by giving
notice to the NT Government, which in turn will result in the
transfer of NT-owned assets at Mt Todd and all pre-existing
environmental liability for the Mt Todd project from the NT to the
Company.
Northern Territory Minister for Primary Industry and Resource,
Hon. Ken Vowles, stated the
following when announcing the extension of the agreement, "The
Government and Vista Gold both want to see Mt Todd operating again,
in the interests of regional development, creating local jobs and
managing environmental issues. The extended agreement
maintains Vista Gold's role as manager of the site, and
acknowledges its commitment to future development."
Mr. Earnest added, "We would like to thank the NT Government for
their continued support of Vista Gold and our efforts on the Mt
Todd gold project. We have worked very hard at Mt Todd to
maintain our strong commitment to responsible environmental
management and to build strong stakeholder support for the
development of the project."
About Vista Gold Corp.
The Company is a well-funded gold project developer. Our
principal asset is our flagship Mt Todd gold project in Northern
Territory, Australia. Mt Todd is one of the largest known
undeveloped gold projects in Australia. For more information about our
projects, including technical studies and resource estimates,
please visit our website at www.vistagold.com.
For further information, please contact Connie Martinez at (720) 981-1185.
Forward Looking Statements
This press release
contains forward-looking statements within the meaning of the U.S.
Securities Act of 1933, as amended, and U.S. Securities Exchange
Act of 1934, as amended, and forward-looking information within the
meaning of Canadian securities laws. All statements, other
than statements of historical facts, included in this press release
that address activities, events or developments that we expect or
anticipate will or may occur in the future, including such things
as our belief that the optimization studies could further enhance
the economics of the Mt Todd gold project without materially
changing the capital requirements, and the plans, results and
timing for the completion of the testwork; the timing for and
completion of an updated preliminary feasibility study on Mt Todd
and other such matters are forward-looking statements and
forward-looking information. The material factors and assumptions
used to develop the forward-looking statements and forward-looking
information contained in this press release include the following:
our approved business plans, exploration and assay results, results
of our test work for process area improvements, mineral resource
and reserve estimates and results of preliminary economic
assessments, prefeasibility studies and feasibility studies on our
projects, if any, our experience with regulators, and positive
changes to current economic conditions and the price of gold.
When used in this press release, the words "optimistic,"
"potential," "indicate," "expect," "intend," "hopes," "believe,"
"may," "will," "if," "anticipate," and similar expressions are
intended to identify forward-looking statements and forward-looking
information. These statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by such statements. Such
factors include, among others, uncertainty of resource and reserve
estimates, uncertainty as to the Company's future operating costs
and ability to raise capital; risks relating to cost increases for
capital and operating costs; risks of shortages and fluctuating
costs of equipment or supplies; risks relating to fluctuations in
the price of gold; the inherently hazardous nature of
mining-related activities; potential effects on our operations of
environmental regulations in the countries in which it operates;
risks due to legal proceedings; risks relating to political and
economic instability in certain countries in which it operates;
uncertainty as to the results of bulk metallurgical test work; and
uncertainty as to completion of critical milestones for Mt Todd; as
well as those factors discussed under the headings "Note Regarding
Forward-Looking Statements" and "Risk Factors" in the Company's
latest Annual Report on Form 10-K as filed on February 22, 2017 and other documents filed with
the U.S. Securities and Exchange Commission and Canadian securities
regulatory authorities. Although we have attempted to
identify important factors that could cause actual results to
differ materially from those described in forward-looking
statements and forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. Except as required by law, we assume no obligation
to publicly update any forward-looking statements or
forward-looking information; whether as a result of new
information, future events or otherwise.
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SOURCE Vista Gold Corp.