The PFS provides an assessment of the Project at a gold price of US$1,350 per troy ounce with a foreign exchange rate of US$0.70 per Australian dollar
Gold is likely to remain a robust investment option
Vista Gold Corp. (“Vista” or the “Company”) (NYSE American and TSX: VGZ) today announced that it has completed and filed the National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) preliminary feasibility study (the “PFS”) for its Mt Todd gold project (“Mt Todd” or the “Project”) in Northern Territory, Australia to support the results of its updated preliminary feasibility study announced on September 10, 2019. The PFS successfully confirmed the efficiency of ore sorting across a broad range of head grades, the natural concentration of gold in the screen undersize material prior to sorting, the efficiency of fine grinding and the resulting improved gold recoveries, and the selection of FLSmidth’s VXP mill as the preferred fine grinding mill.
The PFS provides an assessment of the Project at a gold price of US$1,350 per troy ounce with a foreign exchange rate of US$0.70 per Australian dollar. The base case for the PFS evaluates a 50,000 tonne per day (“tpd”) owner-operated, open-pit operation with a conventional three-stage crush and two-stage grind comminution circuit followed by a carbon-in-pulp gold recovery circuit. The results of an alternate case designed to mine and process 33,000 tpd are also included in the PFS. Additionally, the PFS incorporates the results of metallurgical optimization work, a redesign of the fine grinding circuit, construction and ramp-up schedule changes and a comprehensive review of all aspects of the Project, including consideration of an independent benchmarking study of key PFS parameters. For further information on the results of the PFS and the Project, see the technical report entitled “NI 43-101 Technical Report Mt Todd Gold Project 50,000 tpd Preliminary Feasibility Study Northern Territory, Australia,” dated October 7, 2019, with an effective date of September 10, 2019, which is available on SEDAR at www.sedar.com, EDGAR at www.sec.gov, as well as on Vista’s website under “Mt Todd – Technical Reports.”
Vista’s President and CEO, Frederick H. Earnest, commented, “We are pleased with the results of the PFS, which reflect improved average life of mine gold recoveries to 91.9%, net present value at a 5% discount rate (“NPV5%”) of $823 million and an internal rate of return (“IRR”) of 23.4%, all at a conservative gold price and foreign exchange rate. We believe that Mt Todd has been de-risked through intensive, multi-year studies and application of proven technologies. All major environmental approvals have been received. We believe that Mt Todd is an exceptional asset with a NPV5% of US$1.15 billion and an IRR of 30.2% at the current gold price and foreign exchange rate. We do not believe that the debt and dilution to build Mt Todd on a stand-alone basis is in the best interest of our shareholders. Looking ahead, we are focused on identifying prospective development partners that we believe will recognize the value of Mt Todd, allowing us to provide what we view as appropriate reward for Vista shareholders. We are focused on creating shareholder value, and if needed we are prepared to preserve the value of Mt Todd until an appropriate strategic transaction can be completed that will reward our shareholders.”
Source: Company Press Release