DENVER, July 31, 2019 /CNW/ -- Vista Gold Corp. (NYSE
American and TSX: VGZ) ("Vista" or the "Company") today announced
its unaudited financial results for the quarter ended June 30, 2019. Management's quarterly conference
call to discuss these results is scheduled for 2:30 p.m. MDT on August 6,
2019. The Company's unaudited condensed consolidated
financial statements, management's discussion and analysis,
together with other applicable disclosures can be found in the
Company's Quarterly Report on Form 10-Q, filed on July 31, 2019 with the U.S. Securities and
Exchange Commission and the Canadian securities regulatory
authorities.
Second Quarter Highlights
- Latest test results continue to demonstrate average gold
recoveries in the low-90% range;
- Commenced update to preliminary feasibility study ("PFS") on
Vista's Mt Todd gold project, anticipated for completion in the
third quarter; and
- Maintained solid working capital.
Summary of Q2 2019 Financial Results
Vista reported a net loss of $3.0
million, or $0.03 per share,
for the three-month period ended June 30,
2019. The loss is comprised of $2.0
million of operating expenses and a $1.1 million mark-to-market loss on our
investment in Midas Gold Corp., offset by other income of
$0.1 million.
Working capital at June 30, 2019
was $9.6 million, including cash and
short-term investments (comprised of government securities) of
$6.3 million. The Company has no
debt.
Mt Todd Update
Metallurgical test work at Vista's Mt Todd gold project
continued throughout the second quarter. Initial leach test results
on material from the Batman deposit with an 80% passing ("P80")
grind size of approximately 50 microns achieved average gold
recoveries of 92.7%, a six percentage point improvement from the
average gold recoveries reported in the January 2018 prefeasibility study. Additional
leach test work is nearing completion and final results are
expected in the coming weeks.
Vista's President and CEO, Mr. Frederick
H. Earnest commented, "As we come to the conclusion of the
comprehensive metallurgical optimization program, we are encouraged
by the intermediate results that continue to support recoveries in
the low-90% range. While this testing program has continued, we
have advanced work on an updated PFS to incorporate the improved
gold recoveries and associated design changes. We have retained
independent consultants to review the fine grinding circuit and
complete an independent benchmarking study of our capital and
operating costs, pre-production and ramp-up schedules, and staffing
requirements. We believe these studies in tandem with the updated
PFS will provide greater confidence in the economics of the
project. As we move forward, we continue to focus on achieving a
valuation that is reflective of a very large project in a low-risk
jurisdiction, with favorable costs, robust economics, and
environmental permits in hand."
We anticipate that the updated PFS on Mt Todd will be completed
in the third quarter.
Management Conference Call
A conference call with management to review our financial
results for the second quarter ended June
30, 2019 and to discuss corporate and project activities is
scheduled for August 6, 2019 at
2:30 p.m. MDT.
Participant Toll Free: 844-898-8648
Participant International: 647-689-4225
Conference ID: 8192745
This call will also be webcast and can be accessed at the
following web location:
http://event.on24.com/r.htm?e=2056422&s=1&k=1501F7ED34AFAE300AE85AAA7B6582C9
This call will be archived and available at www.vistagold.com
beginning August 6, 2019. An audio
replay will be available for 21 days by calling toll-free in
North America: 855-859-2056,
passcode 8192745.
If you are unable to access the audio or phone-in on the day of
the conference call, please email your questions to
ir@vistagold.com.
All dollar amounts in this press release are in U.S.
dollars.
Technical Report on Mt Todd
For further information on the Mt Todd gold 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
March 2, 2018 with an effective date
of January 24, 2018, which is
available on SEDAR and EDGAR as well as on Vista's website under
the Technical Reports section.
John Rozelle, Vista's Sr. Vice
President, a Qualified Person as defined by National Instrument
43-101 – Standards of Disclosure for Mineral Projects, has
approved the information in this press release.
About Vista Gold Corp.
The Company is a well-funded gold project developer. Our
principal asset is our flagship Mt Todd gold project in Northern
Territory, Australia. Mt Todd is
the largest undeveloped gold project in Australia.
For further information, please contact Pamela Solly, Vice President of Investor
Relations, at (720) 981-1185.
Forward Looking Statements
This press 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 press release that address
activities, events or developments that we expect or anticipate
will or may occur in the future, including such things as the
timing and completion of an updated Mt Todd PFS which
incorporates the improved gold recoveries and associated design
changes, completion of leach recovery testing as the last phase of
a comprehensive testing program in the next month, the leach
recovery tests to confirm the results of the testing work announced
in August 2018; the Mt Todd gold
project achieving a valuation that is reflective of a very large
project in a low-risk jurisdiction, with favorable costs, robust
economics and environmental permits in hand; and our belief that Mt
Todd is the largest undeveloped gold project in Australia 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 press release include the following:
no change to laws or regulations impacting mine development or
mining activities, our approved business plans, 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,
our experience and knowledge of the Australian mining industry and
positive changes to current economic conditions and the price of
gold. When used in this press 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 filed in February 2019 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 original content to download
multimedia:http://www.prnewswire.com/news-releases/vista-gold-corp-announces-second-quarter-financial-results-and-mt-todd-update-300894474.html
SOURCE Vista Gold Corp.
