Vista Gold Corp | Company Profile

About the Company

Vista Gold Corp. is an international gold mining company based in Littleton, Colorado, with a plus 20-year history of gold exploration, development and operations. Vista is traded on both the TSX and AMEX under the symbol VGZ. Since 2001, Vista has correctly predicted that gold prices would significantly increase for many years to come, and has acquired a number of impressive gold projects during 2001-2006. During 2006 and 2007, Vista completed transactions that resulted in the formation and successful spin-out to its shareholders of Allied Nevada Gold Corp. Since the spin-out Vista has sold one project and currently holds six projects with 10.6 million Measured and Indicated Resources and 3.9 million Inferred. Vista has recently completed a definitive feasibility study on the Paredones Amarillos Project in Mexico that indicated positive results. Vista is undertaking programs to advance the Paredones Amarillos Project, so that construction could begin during the first quarter of 2009, subject to the receipt of the final permit and financing. A preliminary assessment completed in 2007 on the Mt. Todd Project in Australia was encouraging and additional technical studies are underway with a definitive feasibility study planned for completion by mid-2009. Vista’s other holdings include the Yellow Pine Project in Idaho, Guadalupe de los Reyes Project in Mexico, Long Valley Project in California, and Awak Mas Project in Indonesia.

Gold Projects

Vista controls six properties containing 10.6 million measured and indicated gold resource ounces and 3.9 million inferred gold resource ounces. These resource ounces were determined by studies completed by independent consultants. (Dollars referenced below are U.S. dollars).

Paredones Amarillos, Mexico- Vista has completed a definitive feasibility study on the Paredones Amarillos Project in Baja California Sur, Mexico, (see Vista’s press release of September 8, 2008) reflecting an anticipated production rate of 130,000-160,000 ounces per year during the 9.5 year life of the reserve. The economic analysis was completed using a gold price of $850 per ounce in the first three years of production, decreasing to $725 per ounce for the remainder. The mineralized zone comprises of 71 million tonnes of measured and indicated resource with a gold grade of 0.93 g/t and a gold content of 2.1 million ounces. Economic reserves comprise of 38 million tonnes of proven and probable ore with a grade of 1.08 g/t and a gold content of 1.3 million ounces.

Based on the study, the estimated life-of-mine average cash production costs are projected to be $419 per ounce, with lower costs of $388 per ounce projected during the first five years of production. Pre-production capital costs, using conservative contingencies, owner’s costs and working capital, are estimated to be $196.7 million or $165 per ounce of gold produced.

Vista plans to utilize outside sources to provide the additional capital required for the project capital costs and will be proceeding to examine various project financing alternatives, including debt and equity components. Vista has already purchased the major mill equipment and has placed orders for the major mining equipment, over the next few months Vista intends to identify the remaining long delivery items for order. In addition, during the same period Vista intends to retain project engineers to prepare a detailed design of the project and to examine alternative construction management and project execution arrangements. Upon successful completion of project financing, and the issuance of a new Change of Land Use Permit, construction on the Paredones Amarillos Project is expected to commence before the end of the first quarter of 2009, with first gold production planned to commence the first quarter of 2010.

Mt. Todd, Australia – An updated gold resource estimate for the Batman deposit, at the Mt. Todd Gold Project, was completed on February 26, 2008. The resource estimate incorporates the results of 9,460 assay intervals from 25 drill holes (all core holes) drilled by Vista in 2007 and the results of 91,225 assay intervals from 730 drill holes (225 core, 435 reverse circulation and 70 rotary drill holes) used in the previous Mt. Todd resource estimate. The new resource estimate represents an increase in measured resources of 769,633 ounces of gold and an increase in indicated resources of 367,686 ounces of gold resulting in a combined increase in measured and indicated resources of 1,137,319 ounces of gold at a cutoff grade of 0.50 grams of gold per tonne (0.015 ounces of gold per ton).

The silver and copper resource estimates for the Batman deposit were completed on April 24, 2008, by Tetra Tech of Golden, Colorado. The resource estimates incorporated the results of 9,460 assay intervals from the 2007 drilling program, with assaying completed by Northern Australia Labs in Pine Creek and ALS-Chemex in Perth and the results of 87 copper assays completed on random intervals from the unmined portions of the 730 drill holes (225 core, 435 reverse circulation and 70 rotary drill holes) completed by BHP Resources Pty Ltd., Zapopan NL and Pegasus Gold Australia Pty Ltd. Vista submitted 2,979 intervals of core for re-assay and multi-element analysis by ALS-Chemex in Perth.

Vista’s 2008 drilling program is designed to increase the density of sampling, so that, if successful, the new information obtained will cause the inferred resources estimated in 2007 to be upgraded to measured and indicated resources and to test the potential for increasing the total resource estimate by sampling the down-dip extension of the known resource. Vista reported in a press release dated September 3, 2008, the results of four completed core holes drilled as part of the 8,000 meter program. The results are encouraging, confirming the continuity of mineralization at depth and showing the same pattern of higher gold grades at depth that was evident in the 2007 program. Preliminary copper assays also demonstrate a pattern of higher grades compared to the previously reported resource estimate. During 2008, Vista is also undertaking a comprehensive metallurgical test program to examine various approaches to recovering both gold and copper present in the ore. Vista is also testing a relatively new technology in ore crushing, know as High Pressure Grinding Rolls (“HPGR”). HPGR has been shown to be a very efficient technology resulting in cost savings and improvements in recovery. Initial results from both programs have been encouraging.

Vista holds a large exploration land package to the North and East of the Batman deposit and is currently conducting technical programs that management expects will lead to the completion of a preliminary feasibility study early in 2009.

Yellow Pine, Idaho - Located in Valley County, Idaho, this project contains measured and indicated gold resources of 2.2 million ounces and inferred gold resources of 819,000 ounces. The property has excellent potential for expansion laterally and at depth. A preliminary economic assessment completed in December 2006 projects a 10-year mine life (8,600 tpd plant), producing 190,000 ounces of gold a year. Initial capital costs at Yellow Pine were estimated at $150 million. Once in production, the net cash flow to Vista is estimated at $266 million (based on a gold price of $630 an ounce). Currently, Vista is planning to begin collecting baseline environmental data for permitting.

Guadalupe de los Reyes, Mexico - This project, located in the Sierra Madre Range, contains measured and indicated resources of 485,000 gold ounces and inferred resources of 316,000 gold ounces with significant silver credits. In January 2008, Vista completed an acquisition that consolidated all of the known gold and silver resources in the district under Vista's ownership.

Long Valley, California - Long Valley is an epithermal deposit located 30 miles northwest of Bishop in Mono County, California. Measured and indicated gold resources stand at 1.2 million ounces plus 0.6 million inferred gold ounces. Some 880,000 gold ounces are in near-surface oxide material. There are numerous exploration targets to expand the resource base. Vista completed a Preliminary Assessment of the project in January 2008 which indicated the project could be viable as a heap-leach operation at gold prices above $550 per ounce.

Awak Mas, Indonesia - The Awak Mas gold deposit located in Sulawesi, Indonesia, contains measured and indicated gold resources of 1.7 million ounces and inferred gold resources of 539,000 ounces. Vista acquired the project for $1.5 million in May 2005. The project has undergone significant exploration, drilling and feasibility studies by major companies from 1991 through 1997 with over $40 million spent on the property. In late 2006, Vista completed a drilling program, a new resource estimate in June 2007 and a Preliminary Assessment in January 2008.

Contact:

...return to top of page | ...return to Mining Companies Overview