Denver, Colorado, February 26, 2020 – Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the “Company”) today announced its audited financial results and highlights for the fiscal year ended December 31, 2019. Management’s quarterly conference call to discuss these results is scheduled for 2:30 p.m. MST on March 5, 2020. The Company’s consolidated audited financial statements and Management’s Discussion and Analysis together with other important disclosures can be found in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission and the Canadian securities regulatory authorities.
Highlights for 2019
Reported positive results for the updated October 2019 preliminary feasibility study (the “2019 PFS”) for the Mt Todd gold project (“Mt Todd” or the “Project”) with improved after-tax net present value at a 5% discount rate (“NPV5%”) of $823 million and internal rate of return (“IRR”) of 23.4% at a gold price of $1,350 per ounce and a $0.70=A$1.00 exchange rate and after-tax NPV5% of $1.5 billion and IRR of 38.3% at a gold price of $1,650 per ounce and a $0.65=A$1.00 exchange rate;
Completed a comprehensive metallurgical optimization program that demonstrated improved life-of-mine gold recovery of 91.9% and total recovered gold of 5.3 million ounces(1);
Completed an independent benchmarking study to assess the appropriateness of capital and operating cost estimates, construction and ramp-up schedules, owner’s costs and key components of the Project;
Received $3.2 million cash in option payments and related fees from Prime Mining Corp. under the option agreement for the Company’s Los Reyes gold / silver project in Sinaloa, Mexico;
Amended the Company’s royalty agreement for the Awak Mas gold project in Indonesia, pursuant to which PT Masmindo DWI Area has the option to cancel the 2% net smelter return (the “NSR”) royalty payable to Vista by making an initial payment of $100,000 and issuing 666,667 shares of Nusantara Resources Limited (received by Vista in November 2019), and making future payments to Vista in the amounts of $2.4 million payable April 30, 2020 and $2.5 million payable April 30, 2021, with each payment canceling 1% of the NSR royalty; and
Strengthened Vista’s board of directors and senior management team with the appointments of Deborah Friedman as a Director, Doug Tobler as Chief Financial Officer, and Pamela Solly as Vice President of Investor Relations.
The life of mine plan includes both proven and probable mineral reserves. See “Project Mineral Resources and Reserves” below for further information.
Frederick H. Earnest, President and Chief Executive Officer of Vista, stated, “During 2019 we achieved several significant milestones as we continued to advance and de-risk the Mt Todd gold project. We completed several major project initiatives highlighted by the 2019 PFS, generated cash of $3.3 million from non-dilutive financing opportunities, and strengthened our senior management team and board of directors with the appointments of several accomplished and experienced mining executives.
As part of our 2019 initiatives, we completed a comprehensive metallurgical optimization program, the 2019 PFS, and an independent benchmarking study. These initiatives, combined with other de-risking activities, demonstrate the robust economics and advanced stage of Mt Todd.
In 2020, our primary focus will be to secure a strategic partner for the development of Mt Todd. With the continued improvement in gold price, we are evaluating the positive impact of higher gold prices on mine plans and project economics. The following figures illustrate the Project’s after-tax economics at various gold price and exchange rate assumptions. We continue to de-risk Mt Todd in a cost-effective manner and work with NT Department of Primary Industries and Resources to receive authorization of the Mt Todd Mine Management Plan.”
see & read more on
https://vistagold.com/investors/news/news-2020/628-vista-gold-corp-announces-2019-highlights-and-financial-results |
