Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today announced the positive results of hole VB21-002 at
its Mt Todd Gold Project (“Mt Todd” or the “Project”) in the
Northern Territory, Australia. This 459-meter drill hole
intersected mineralization on-trend with the Batman deposit, 500
meters north-northeast in an area with no deep drilling and
encountered a 30-meter intercept grading 1.23 g/t Au. The results
of this hole demonstrate the strong potential for continuity of
gold mineralization along the 5.4 km strike length of the
Batman-Driffield Structural Trend located on Vista’s mineral
licenses (“MLs”). As a result, the Company today announced that it
is expanding its drilling program to include an additional 10 holes
to focus deep drilling along the 1.0 km strike area from the Batman
deposit north to the Golf–Tollis/Penguin targets.
Frederick H. Earnest, President and Chief
Executive Officer of Vista, stated, “Hole VB21-002 validated our
belief that mineralization along the structurally-controlled
Batman-Driffield Trend is more continuous and widely occurring than
previously thought. This hole also provided important initial
geology and mineralization information in an area previously
undrilled at depth.
“As we move to the north and east of the Batman
deposit, the intrusive which mobilized the gold in this district is
deeper. This, combined with the orientation and intersection of
structural zones, leads us to believe there is a compelling
opportunity to add to the resource base of the Mt Todd project by
focusing on targets below the shallow historic drilling in this
area. Following on our recently completed drill program, we have
added a second drill and are now moving forward with an initial
10-hole drilling program to test and better define the host
structures underlying known gold occurrences and to evaluate the
potential to significantly increase the known mineral resources in
the area extending from the Batman deposit 1 km north to the
Golf–Tollis/Penguin targets. Successful achievement of these
objectives is expected to lay the groundwork for project growth and
improved shareholder value.” Vista Gold CEO Video
Results of Hole VB21-002
Assay results for hole VB21-002 are summarized below.
Hole No. |
Grid Co-ordinates |
Survey Data |
Intersections |
MGA94 Grid Easting |
MGA94 Grid Northing |
RL (m) |
Azimuth (°) |
Dip (°) |
Depth (m) |
|
From (m) |
To (m) |
Interval (m) |
True Thickness (m) |
Grade(g/t Au) |
Sample Type |
VB21-002 |
187662 |
8436402 |
164.0 |
269.9 |
-50.0 |
458.6 |
|
224.0 |
254.0 |
30.0 |
25.0 |
1.23 |
HQ ½ Core |
|
|
|
|
|
|
|
incl |
224.0 |
232.0 |
8.0 |
6.7 |
1.74 |
HQ ½ Core |
|
|
|
|
|
|
|
and |
268.0 |
271.0 |
3.0 |
2.5 |
1.73 |
HQ ½ Core |
Notes: |
|
(i) |
Results are based on ore grade 50g fire assay for Au. |
|
(ii) |
Intersections are from diamond core drilling with half-core samples
or from RC drilling with 1m representative samples. |
|
(iii) |
Core sample intervals were constrained by geology, alteration or
structural boundaries, intervals varied between a minimum of 0.2
metres to a maximum of 1.2 metres. |
|
(iv) |
Mean grades have been calculated on a 0.4g/t Au lower cut-off grade
with no upper cut-off grade applied, and maximum internal waste of
4.0 metres. |
|
(v) |
All intersections are downhole intervals, and reflect approximate
true widths. |
|
(vi) |
All downhole deviations have been verified by downhole camera and
or downhole gyro |
|
(vii) |
Collar coordinates surveyed by Earl James & Assoc. using
Trimble R8 GNSS. |
|
(viii) |
The Company maintains a QA/QC program in compliance with the
requirements of National Instrument 43-101. |
|
(ix) |
The assay laboratories responsible for the assays were NAL Pty Ltd,
Pine Creek, NT and Genalysis Laboratory Services Pty Ltd, Perth,
WA. |
|
|
|
The following figure shows hole VB21-002
relative to the historic drilling on Section 8436400 N. The plus 1
g Au/tonne mineralized intercept encountered in this hole with very
little similar grade material reported in the near-surface historic
drilling is consistent with Vista’s previous exploration experience
at Mt Todd. Vista plans to drill holes above, below and off-section
of this mineralized intercept to gain a better understanding of the
orientation, continuity along strike and potential for higher grade
mineralization at depth. This hole underscores Vista’s geologic
interpretations regarding the continuity of mineralization and
potential to define new resources within the Batman-Driffield
Trend.
VB21-002 Results on Section 8436900
N https://www.globenewswire.com/NewsRoom/AttachmentNg/befa664f-3704-4691-8f4b-64ba21f597a4
Comprehensive Exploration Program
Update
Vista has contracted a second drill rig to
accelerate the drilling of the next phase of the Batman-Driffield
exploration program. Ten holes totaling 3,000 meters are planned in
the area north of the Batman deposit and extending to the area of
the Golf-Tollis/Penguin targets, a strike length of 1.0 km. The
first holes will be drilled in the general vicinity of recently
completed hole VB21-002 – both up and down plunge. The holes in
this program are planned to test structural zones and intersections
of structures that are believed to be similar to zones and
intersections that are known to host significant gold resources in
the Batman deposit. The lateral extent of the historic drilling
results suggests that deeper drilling around these targets could
significantly increase the total gold resources at Mt Todd.
On the large land package that encompasses Mt
Todd, there are two-principle mineralized structural trends; the
Batman-Driffield Trend and the Cullen-Australis Trend. The
Batman-Driffield Trend, which has the greatest number of known
mineralized prospects and has been the subject of the most detailed
work, is predominantly located within the boundaries of the Mt Todd
MLs. Figure 1 provides detail of the portion of the
Batman-Driffield Trend within the MLs which hosts the Batman
deposit and a number of known mineral occurrences. As shown in this
plan view, Long-Section A-B covers a linear length of ~5.4 Km and
extends from the Batman deposit north to the Quigleys
Extension.
Figure 1: Plan map of the Mt Todd
MLs with details of the southwestern portion
of the Batman-Driffield
Trend https://www.globenewswire.com/NewsRoom/AttachmentNg/e82ac004-5b49-451a-a8d8-dffbd0d28727
The following cross section (Figure 2) provides
details of the historic drilling along Long-Section A-B (shown in
plan view in Figure 1). Of particular interest is the depth of the
historic drill holes, most of which terminated at relatively
shallow depths. Vista has drilled the Batman deposit to over 850 m
below the surface and in the course of completing this work, the
measured and indicated resources have grown from 1.9 million
ounces1 in 2006 to 7.4 million ounces2 in 2020 while the total
ounces classified as inferred resources declined only modestly over
this same period. This growth in mineral resources is the direct
result of drilling deeper than the historic drilling, most of which
ended at approximately 100 m in depth. Vista believes that the same
potential may exist below the Golf-Tollis/Penguin targets, and
below the Quigleys deposit. The “ovals” on the long section
indicate the drill target locations.
1 Measured resources are 22,095,000 tonnes with
average grade of 0.89 grams of gold per tonne containing 628,930
ounces using a 0.4g Au/t cutoff grade. Indicated resources are
45,715,000 tonnes with average grade of 0.88 grams of gold per
tonne containing 1,293,612 ounces using a 0.4g Au/t cutoff grade.
Combined measured and indicted resources are 67,810,000 tonnes with
average grade of 0.88 grams of gold per tonne containing 1,922,542
ounces using a 0.4g Au/t cutoff grade. Reserves, if any, are
included. Inferred resources are 61,754,000 tonnes with an average
grade of 0.84 grams of gold per tonne containing 1,671,729 ounces
using a 0.4 g Au/t cutoff grade. See technical report entitled
“Technical Report, Mt Todd Gold Project, Northern Territory,
Australia,” dated June 26, 2006. See Cautionary Note to U.S.
Investors below.
2 For the Batman deposit, measured
resources are 77,725,000 tonnes with average grade of 0.88 grams of
gold per tonne containing 2,191,000 ounces using a 0.4g Au/t cutoff
grade. Indicated resources are 200,112,000 tonnes with average
grade of 0.80 grams of gold per tonne containing 5,169,000 ounces
using a 0.4g Au/t cutoff grade. Combined measured and indicted
resources are 277,837,000 tonnes with average grade of 0.82 grams
of gold per tonne containing 7,360,000 ounces using a 0.4g Au/t
cutoff grade. Reserves, if any, are included. Inferred resources
are 61,323,000 tonnes with an average grade of 0.72 grams of gold
per tonne containing 1,421,000 ounces using a 0.4 g Au/t cutoff
grade. See technical report entitled “NI 43-101 Technical Report Mt
Todd Gold Project 50,000 tpd Preliminary Feasibility Study Northern
Territory, Australia,” with an effective date of September 10,
2019, an issue date of October 7, 2019, and as amended September
22, 2020. See Cautionary Note to U.S. Investors below.
Figure 2: Long section A-B showing all
drill holes drilled to date (both historic and
Vista) https://www.globenewswire.com/NewsRoom/AttachmentNg/e1466424-b61d-47a2-ae01-195a368762fc
The following plan view (Figure 3) shows the
locations of the historic drill holes and Vista’s recent drill
holes overlain by the principle structural interpretation. Vista’s
drill hole VB20-001 was the first hole drilled on a major cross
structural fracture that connects the Batman structural trend with
the parallel structural trend found at Golf-Tollis/Penguin. Drill
hole VB21-002 (oriented to the west) was the first deep drill hole
drilled significantly north of the last identified mineralization
at Batman deposit.
Presently, Vista is drilling a hole located east
of VB21-002 and oriented to the east. The regular spacing of the
southwest to northeast structural features and the connected cross
structure features form the principal drivers for the current
exploration drilling program and our excitement about the potential
of this area.
Figure 3: Plan view of the area covered
by the A-B section line with structural
interpretations https://www.globenewswire.com/NewsRoom/AttachmentNg/5c287f84-a868-4188-9479-ee8598dfa374
Figure 4 details Long-Section A-B and
illustrates the subsurface geology and metal zoning that we believe
underlie the surface. Drill results to date indicate that the
mineralization at the Golf-Tollis/Penguin targets is very similar
to that found in the Batman deposit. Based on our comprehensive
understanding of the Batman deposit, we believe the potential
exists for the Golf-Tollis/Penguin targets to host a significant
increase in resources. The section shows the plunge of the
higher-grade mineralization identified in the Batman and Quigleys
deposits. Also shown is the projected plunge of the
Golf-Tollis/Penguin target which is believed to parallel the known
plunge of the Batman higher-grade mineralization.
Figure 4: Subsurface interpreted geology
and metal
zonation https://www.globenewswire.com/NewsRoom/AttachmentNg/27ae2b50-5b8a-4bf1-9dae-ee67e5292947
The last section (Figure 5) illustrates the
potential of this area based on our geologic and structural
interpretation. The areas that Vista is targeting with its ongoing
exploration program are near the known mineral resources contained
in the Batman deposit. The areas have similar geology and
structural controls, and like the Batman deposit in 2006 when Vista
acquired the site, have largely received only shallow drilling.
Figure 5: Long section A-B showing the
extent of previous drilling and the resulting resource estimates
compared to the target area for the newly announced drilling
program. https://www.globenewswire.com/NewsRoom/AttachmentNg/944b707d-fd02-43e3-beca-9ce2f519ba0f
3 For the Batman deposit, measured
resources are 77,725,000 tonnes with average grade of 0.88 grams of
gold per tonne containing 2,191,000 ounces using a 0.4g Au/t cutoff
grade. Indicated resources are 200,112,000 tonnes with average
grade of 0.80 grams of gold per tonne containing 5,169,000 ounces
using a 0.4g Au/t cutoff grade. Combined measured and indicted
resources are 277,837,000 tonnes with average grade of 0.82 grams
of gold per tonne containing 7,360,000 ounces using a 0.4g Au/t
cutoff grade. Reserves, if any, are included. Inferred resources
are 61,323,000 tonnes with an average grade of 0.72 grams of gold
per tonne containing 1,421,000 ounces using a 0.4 g Au/t cutoff
grade. See technical report entitled “NI 43-101 Technical Report Mt
Todd Gold Project 50,000 tpd Preliminary Feasibility Study Northern
Territory, Australia,” with an effective date of September 10,
2019, an issue date of October 7, 2019, and as amended September
22, 2020. See Cautionary Note to U.S. Investors below.
4 For the Quigleys deposit, measured resources
are 594,000 tonnes with average grade of 1.15 grams of gold per
tonne containing 22,000 ounces using a 0.4g Au/t cutoff grade.
Indicated resources are 7,301,000 tonnes with average grade of 1.11
grams of gold per tonne containing 260,000 ounces using a 0.4g Au/t
cutoff grade. Combined measured and indicted resources are
7,895,000 tonnes with average grade of 1.11 grams of gold per tonne
containing 282,000 ounces using a 0.4g Au/t cutoff grade. Reserves,
if any, are included. Inferred resources are 3,981,000 tonnes with
an average grade of 1.46 grams of gold per tonne containing 187,000
ounces using a 0.4 g Au/t cutoff grade. See technical report
entitled “NI 43-101 Technical Report Mt Todd Gold Project 50,000
tpd Preliminary Feasibility Study Northern Territory, Australia,”
with an effective date of September 10, 2019, an issue date of
October 7, 2019, and as amended September 22, 2020. See Cautionary
Note to U.S. Investors below.
John Rozelle, Vista’s Sr. Vice President, a
Qualified Person as defined by National Instrument 43-101 –
Standards of Disclosure for Mineral Projects, has verified the data
underlying the information contained in and has approved this press
release. All of the drill hole information displayed in Figure 2
has been previously disclosed in Vista’s October 7, 2019 NI 43-101
Technical Report (TR) entitled “NI 43-101 Technical Report, Mt Todd
Gold Project, 50,000 tpd Preliminary Feasibility Study, Northern
Territory Australia”. The information contained in this press
release does not change any of the mineral resources or reserves
estimates contained in Vista’s October 7, 2019 Technical Report.
The information contained in this press release is provided to
inform the reader of the growth of our geologic understanding of
the Project as new software tools have been implemented.
Data Verification and QA/QC
The sampling method and approach for the
drillholes are as follows:
- The drill core, upon removal from
the core barrel, is placed into plastic core boxes;
- The poly core boxes are transported
to the sample preparation building;
- The core is marked, geologically
logged, geotechnically logged, photographed, and sawn into halves.
One-half is placed into sample bags as one-meter sample lengths,
and the other half retained for future reference. The only
exception to this is when a portion of the remaining core has been
flagged for use in the ongoing metallurgical testwork;
- The bagged samples have sample tags
placed both inside and on the outside of the sample bags. The
individual samples are grouped into “lots” for submission to
Northern Analytical Laboratories for preparation and analytical
testing; and
- All of this work was done under the
supervision of a Vista geologist.
Processing of the core included photographing,
geotechnical and geologic logging, and marking the core for
sampling. The nominal sample interval was one meter. When this
process was completed, the core was moved into the core
cutting/storage area where it was laid out for sampling. The core
was laid out using the following procedures:
- One meter depth intervals were
marked out on the core by a member of the geologic staff;
- Core orientation (bottom of core)
was marked with a solid line when at least three orientation marks
aligned and used for structural measurements. When orientation
marks were insufficient an estimated orientation was indicated by a
dashed line;
- Geologic logging was then done by a
member of the geologic staff. Assay intervals were selected at that
time and a cut line marked on the core. The standard sample
interval was one meter, with a minimum of 0.2 m and a maximum of
1.2 m;
- Blind sample numbers were then
assigned based on pre-labeled sample bags. Sample intervals were
then indicated in the core tray at the appropriate locations;
and
- Each core tray was photographed and
restacked on pallets pending sample cutting and stored on site
indefinitely.
The core was then cut using diamond saws with
each interval placed in sample bags. At this time, the standards
and blanks were also placed in plastic bags for inclusion in the
shipment. A reference standard or a blank was inserted at a minimum
ratio of 1 in 10 and at suspected high grade intervals additional
blanks sample were added. Standard reference material was sourced
from Ore Research & Exploration Pty Ltd and provided in 60 g
sealed packets. When a sequence of five samples was completed, they
were placed in a shipping bag and closed with a zip tie. All of
these samples were kept in the secure area until crated for
shipping.
Samples were placed in crates for shipping with
100 samples per crate (20 shipping bags). The crates were stacked
outside the core shed until picked up for transport and shipped to
NAL Pty. Ltd an independent. ISO 9000 certified lab, for standard
fire assays. At the lab, the samples are pulverized and split down
to 50-gram assay samples prior to assaying. The industry-standard 3
assay-ton fire assay is followed by an atomic absorption (AA)
finish, except where results report a result of greater than 3 g
Au/tonne, and then a gravimetric finish is used to report final
results.
The QP is satisfied that sample security
measures meet industry standards. Statistical analysis of the
various drilling populations and quality assurance/quality control
(QA/QC) samples has not identified or highlighted any reasons to
not accept the data as representative of the tenor and grade of the
mineralization estimated at the Batman deposit.
About Vista Gold Corp.
The Company is a gold project developer. The
Company’s flagship asset is the Mt Todd gold project in Northern
Territory, Australia. Mt Todd is the largest undeveloped gold
project in Australia and if developed as presently designed, would
potentially be Australia’s 6th largest gold producer on an annual
basis.
For further information about Vista or the Mt
Todd Gold Project, please contact Pamela Solly, Vice President of
Investor Relations, at (720) 981-1185 or visit the Company’s
website at www.vistagold.com to access important information,
including the current Technical Report.
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 drilling results show a strong potential for
continuity of gold mineralization along the 5.4 Km strike length of
the Batman-Driffield Structural Trend; our expected plans for the
drilling program; our expected results of the drilling program; ;
our believe that there is a compelling opportunity to add
significantly to the resource base of the Mt Todd project; our
plans to confirm structural zones and intersections of structures
that are believed to be similar to zones and intersections that are
known to host significant gold resources in the Batman deposit; our
belief that further potential may exist below the Golf-Tollis and
Penguin targets, and below the Quigleys deposit; our expectations
with respect to the subsurface geology and metal zoning that we
believe underlie the surface; our belief that additional drilling
could confirm continuity and connectivity of the mineralized
structures extending northeast to the Quigleys deposit; and our
belief that Mt Todd is the largest undeveloped gold project in
Australia and if developed as presently designed, would potentially
be Australia’s 6th largest gold producer on an annual basis 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, that our exploration and assay results are
accurate, 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, uncertainties inherent in the exploration of mineral
properties, the possibility that future exploration results will
not be consistent with the Company's expectations; there being no
assurance that the exploration program or programs of the Company
will result in expanded mineral resources; 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 February 26, 2021 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. Accordingly, readers should not place undue
reliance on forward-looking statements. 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.
Cautionary Note to United States
Investors
The United States Securities and Exchange
Commission (“SEC”) limits disclosure for U.S. reporting purposes to
mineral deposits that a company can economically and legally
extract or produce. The technical reports referenced in this press
release uses the terms defined in Canadian National Instrument
43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)
and the Canadian Institute of Mining, Metallurgy and Petroleum (the
“CIM”) – CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council, as amended (the “CIM
Definition Standards”). These standards are not the same as
reserves under the SEC’s Industry Guide 7 and may not constitute
reserves or resources under the SEC’s newly adopted disclosure
rules to modernize mineral property disclosure requirements (“SEC
Modernization Rules”), which became effective February 25, 2019 and
will be applicable to the Company in its annual report for the
fiscal year ending December 31, 2021. Under the currently
applicable SEC Industry Guide 7 standards, a “final” or “bankable”
feasibility study is required to report reserves, the three-year
historical average price is used in any reserve or cash flow
analysis to designate reserves and all necessary permits and
government approvals must be filed with the appropriate
governmental authority. Additionally, the technical reports uses
the terms “measured resources”, “indicated resources”, and
“measured & indicated resources”. We advise U.S. investors that
while these terms are Canadian mining terms as defined in
accordance with NI 43-101, such terms are not recognized under SEC
Industry Guide 7 and normally are not permitted to be used in
reports and registration statements filed with the SEC. Mineral
resources described in the technical reports have a great amount of
uncertainty as to their economic and legal feasibility. The SEC
normally only permits issuers to report mineralization that does
not constitute SEC Industry Guide 7 compliant “reserves” as
in-place tonnage and grade, without reference to unit measures.
“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 any or all part of an
inferred resource will ever be upgraded to a higher category.
U.S. Investors are cautioned not to assume that any part or
all of mineral deposits in these categories will ever be converted
into SEC Industry Guide 7 reserves.
Under the SEC Modernization Rules, the
definitions of “proven mineral reserves” and “probable mineral
reserves” have been amended to be substantially similar to the
corresponding CIM Definition Standards and the SEC has added
definitions to recognize “measured mineral resources”, “indicated
mineral resources” and “inferred mineral resources” which are also
substantially similar to the corresponding CIM Definition Standard.
However there are differences between the definitions and standards
under the SEC Modernization Rules and those under the CIM
Definition Standards and therefore once the Company begins
reporting under the SEC Modernization Rules there is no assurance
that the Company’s mineral reserve and mineral resource estimates
will be the same as those reported under CIM Definition Standards
as contained in the technical reports prepared under CIM Definition
Standards or that the economics for the Mt Todd project estimated
in such technical reports will be the same as those estimated in
any technical report prepared by the Company under the SEC
Modernization Rules in the future.
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