Mt Todd is considered as one of the largest undeveloped gold projects in Australia
Vista Gold has received the Northern Territory government approval for its Mining Management Plan (MMP) for its Mt Todd gold project.
The MMP, which is similar to a mine operating permit in North America, is the final major authorisation required for the development of the mine.
Located nearly 250km southeast of Darwin, Mt Todd is considered as one of the largest undeveloped gold projects in Australia.
With the receipt of the approval, Vista has obtained a significant de-risking milestone, which has been the focus of the company for the last three years.
Vista president and chief executive officer Frederick H Earnest said: “The approval of the MMP is a landmark achievement for Vista, its shareholders and the Northern Territory.
“We believe the approval of the MMP distinguishes Mt Todd as an attractive, de-risked, and partner-ready development-stage gold project highlighted by a large-scale production design, low expected operating costs, mining friendly jurisdiction, substantial existing infrastructure, strong social and government support, and all major authorizations in hand.
“At a gold price of $1,900 and a foreign exchange rate of US$0.775=A$1.00, the after-tax NPV5% is estimated to be $1.7 billion with an after-tax IRR of more than 38.8%. We are committed to realizing the full value of Mt Todd for our shareholders.”
With 1,501km2 of exploration licenses, the Mt Todd project is said to have the potential to expand gold resources and reserves and increase the life of the mine.
The project hosts meta-sediments, granitoids, basic intrusives, acid and intermediate volcanic rocks. With a mine life of 13 years, it is estimated to produce 4.96Moz of gold.
According to the company, the project has secured all major operating and environmental permits.
The project has received Commonwealth environmental permit from the Australian Commonwealth Department of Environment and Energy in January 2018.