Vista Gold Commences Feasibility Study Targeting a Higher Reserve Grade and Significantly Lower Initial Capital Costs at Mt Todd

Rhea-AI Summary

Vista Gold Corp. (NYSE American and TSX: VGZ) has announced the start of a new feasibility study for its Mt Todd gold project. The study targets increasing the reserve grade to 1 gram gold per tonne and reducing initial capital costs to $400 million.

The project aims to achieve annual gold production of 150,000 to 200,000 ounces from a 5.2 million tonnes per annum throughput. The new design features a 15,000 tonne per day throughput rate, representing a 60% reduction in initial capital costs compared to the previous large-scale feasibility study.

The company has engaged several consultants, including GR Engineering Services for process design and Mining Plus for mine planning. The study is expected to complete in mid-2025.

Positive

• Planned 60% reduction in initial capital costs to $400 million
• Targeted increase in reserve grade to 1 gram gold per tonne
• Expected annual gold production of 150,000-200,000 ounces
• Project design maintains future expansion potential

Negative

• Extended timeline with study completion not expected until mid-2025
• Reduced processing capacity compared to previous feasibility study

Insights

Mining Industry Analyst

This strategic pivot towards a smaller-scale operation at Mt Todd represents a significant shift in Vista Gold's development approach. The planned reduction in initial capital expenditure to $400 million from the previous larger-scale study makes the project more financially manageable and potentially easier to finance in the current market environment.

The targeted increase in reserve grade to 1% gold per tonne through higher cut-off grades should improve the project's economics. The planned 5.2 Mtpa throughput targeting 150,000-200,000 ounces of annual gold production positions this as a mid-tier operation with solid production metrics. The retention of expansion optionality is particularly strategic, allowing for future scalability.

The engagement of well-established Australian firms like GRES and Mining Plus adds credibility to the feasibility study. Their extensive regional experience will be important in delivering realistic cost estimates and practical design solutions tailored to Australian operating conditions.

Financial Analyst

The market should view this strategic realignment positively. For a company with a market cap of $74 million, the previous capital requirements were likely deterring potential investors and financing partners. The 60% reduction in initial capital requirements significantly improves the project's fundability while maintaining meaningful production levels.

The focus on higher-grade material through increased cut-off grades demonstrates prudent capital efficiency, potentially leading to stronger cash flows in early years. This could help with debt servicing and accelerate payback periods. The 15,000 tonnes per day operation strikes a balance between achieving economies of scale and maintaining capital discipline.

The mid-2025 study completion timeline provides a reasonable runway for project optimization and thorough evaluation of all technical aspects. This measured approach, combined with the emphasis on Australian expertise, should help derisk the project from both technical and financial perspectives.

DENVER--(BUSINESS WIRE)-- Vista Gold Corp. (NYSE American and TSX: VGZ) today announced the commencement of a feasibility study for its Mt Todd gold project. The study aims to increase the reserve grade to 1 gram gold per tonne and reduce the initial capex to $400 million while achieving average annual gold production ranging from 150,000 to 200,000 ounces from 5.2 million tonnes per annum (“Mtpa”) ore throughput. Completion of this feasibility study is expected in mid-2025.

Frederick H. Earnest, President and CEO of Vista, stated, “After carefully evaluating the potential benefits, we have decided to design a project with a 15,000 tonne per day throughput rate, nominally 5.2 Mtpa. We are targeting a reduction of approximately 60% in initial capital costs from the large-scale project feasibility study published earlier this year, and a significant increase in reserve grade to 1 gram gold per tonne with a higher ore cut-off grade. The project design will retain the optionality for future expansion.

“We have selected consultants with extensive Australian and international experience with projects of this scale who can deliver a fit-for-purpose design that achieves the targets we have established. This is a paradigm shift and we believe this will enable us to reach our objective of raising Mt Todd to the top tier of near-term gold development opportunities.”

GR Engineering Services (“GRES”) has been engaged to complete the process area designs, capital and operating cost estimates, project economic analysis, and to author this feasibility study. GRES is an Australia-based process engineering, design, and construction company with significant experience in the mining and mineral processing sector. Additionally, Mining Plus, an Australian-founded global mining advisor and technical consultancy, will provide mine plans, schedules, and reserve estimates; Tetra Tech and SLR Consulting will continue to provide water management, closure, permitting, environmental, and community studies; and Tierra Group International, Ltd. and WSP have been engaged to provide tailings management designs and geotechnical services, respectively. The Company is also in the process of obtaining a contract mining cost estimate from a top-tier Australian mining contractor.

Qualified Person

Maria Vallejo, Vista’s Director of Projects and Technical Services, a Qualified Person (“QP”) as defined by Item 1300 of Regulation S-K under the Securities Exchange Act of 1934, as amended, and Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has verified the data underlying the information contained herein and has approved this press release.

Mt Todd Technical Report Filings

For more information on the Company’s March 2024 feasibility study (the “2024 Feasibility Study”), including with respect to mineral resource and mineral reserve estimates, please refer to the technical report summary entitled “S‑K 1300 Technical Report Summary – Mt Todd Gold Project – 50,000 tpd Feasibility Study – Northern Territory, Australia” with an effective date of March 12, 2024 and an issue date of March 14, 2024 available at www.sec.gov and, for Canadian purposes, the technical report entitled “National Instrument 43-101 Technical Report – Mt Todd Gold Project – 50,000 tpd Feasibility Study – Northern Territory, Australia” with an effective date of March 12, 2024 and an issue date of April 16, 2024 under our profile at www.sedarplus.ca. The 2024 Feasibility Study is not incorporated by reference into this news release.

About Vista Gold Corp.

Vista holds the Mt Todd gold project, a ready-to-build development-stage gold deposit located in the Tier-1 mining jurisdiction of Northern Territory, Australia. Vista is positioning Mt Todd as a leading development opportunity within the gold sector. Mt Todd offers significant scale, development optionality, growth opportunities, advanced local infrastructure, community support, and demonstrated economic feasibility. All major environmental and operating permits necessary to initiate development of Mt Todd are in place.

Vista’s strategy is to advance Mt Todd in ways that efficiently position the project for development while exercising the discipline necessary to best realize value at the right time. Vista believes its strategy of advancing Mt Todd in this manner will deliver a more fully valued project to its shareholders.

For further information about Vista or Mt Todd, please contact Pamela Solly, Vice President of Investor Relations, at (720) 981-1185 or visit the Company’s website at www.vistagold.com.

Forward Looking Statements

This news 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 news 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 study aims to increase the reserve grade to 1 gram gold per tonne and reduce the initial capex to $400 million while achieving average annual gold production ranging from 150,000 – 200,000 ounces from 5.2 Mtpa ore throughput; completion of this feasibility study is expected in mid-2025; after carefully evaluating the potential benefits, we have decided to design a project with a 15,000 tonne per day throughput rate, nominally 5.2 Mtpa; we are targeting a reduction of approximately 60% in initial capital costs from the large-scale project feasibility study published earlier this year, and a significant increase in reserve grade to 1 gram gold per tonne with a higher cut-off grade; the project design will retain the optionality for future expansion; our belief that we have selected consultants with extensive Australian and international experience with projects of this scale who can deliver a fit-for-purpose design that achieves the targets we have established; our belief that this approach is a paradigm shift that will enable us to reach our objective of raising Mt Todd to the top tier of near-term gold development opportunities; our belief that GRES has significant experience in the mining and mineral processing sector; our belief that Mt Todd is a ready-to-build development-stage gold deposit and that the Northern Territory, Australia is a Tier-1 jurisdiction; our belief that Mt Todd offers significant scale, development optionality, growth opportunities, advanced local infrastructure, community support, and demonstrated economic feasibility; statements related to Vista’s strategy, including Vista’s strategy is to advance Mt Todd in ways that efficiently position the project for development while exercising the discipline necessary to best realize value at the right time and Vista’s belief that its strategy of advancing Mt Todd in this matter will deliver a more fully valued project to its shareholders 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 news release include the following: our forecasts and expected cash flows; our projected capital and operating costs; our expectations regarding mining and metallurgical recoveries; mine life and production rates; that laws or regulations impacting mine development or mining activities will remain consistent; our approved business plans, our mineral resource and reserve estimates and results of preliminary economic assessments; preliminary feasibility studies and feasibility studies on our projects, if any; our experience with regulators; political and social support of the mining industry in Australia; our experience and knowledge of the Australian mining industry and our expectations of economic conditions and the price of gold. When used in this news 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, 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 in March 2024, 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. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241209131031/en/

Pamela Solly

Vice President of Investor Relations

(720) 981-1185

Source: Vista Gold Corp.

FAQ

What is the new target reserve grade for Vista Gold's (VGZ) Mt Todd project?

The new feasibility study targets a reserve grade of 1 gram gold per tonne at the Mt Todd project.

How much will Vista Gold (VGZ) reduce initial capital costs in the new Mt Todd feasibility study?

Vista Gold aims to reduce initial capital costs by approximately 60% to $400 million compared to the previous large-scale feasibility study.

What is the expected annual gold production for Vista Gold's (VGZ) Mt Todd project?

The project targets annual gold production ranging from 150,000 to 200,000 ounces from 5.2 million tonnes per annum ore throughput.

When will Vista Gold (VGZ) complete the new Mt Todd feasibility study?

The completion of the new feasibility study is expected in mid-2025.