DENVER, Feb. 25, 2019 /CNW/ -- Vista Gold Corp. (TSX
& NYSE American: VGZ) ("Vista" or the "Company") today
announced its audited financial results and highlights for the
fiscal year ended December 31, 2018.
Management's quarterly conference call to discuss these results is
scheduled for 2:30 p.m. MST on February
27, 2019. The Company's consolidated audited financial
statements, 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.
2018 Mt Todd Highlights
Vista is focused on the Mt Todd gold project in Northern
Territory, Australia where the
Company completed and announced a number of important project
economic and permitting milestones in 2018, including:
- In January 2018, Vista was
notified that its request for authorization of a controlled
activity, as required under the Commonwealth Environmental
Protection and Biodiversity Conservation Act, had been approved.
With this approval, Vista holds all major environmental approvals
necessary for the development of the Mt Todd gold project.
- Also in January 2018, Vista
announced the results of an updated Mt Todd preliminary feasibility
study ("PFS") which demonstrated significant economic improvements
resulting from the inclusion of ore sorting, a newly designed
two-stage grinding circuit and improved gold recoveries estimated
to be 86.4%.
- In August 2018, the Company
announced that additional fine-grinding and leaching tests
completed on low-grade samples (averaging 0.66 grams gold per
tonne) demonstrated that with a modified PFS grinding circuit,
including fine grinding capability, it was possible to produce a
finer final product with improved gold recoveries in excess of 90%,
with no increase in process area power requirements.
- In November 2018, the Company
filed the Mine Management Plan (mine operating permit) for the Mt
Todd gold project with the Northern Territory Department of
Mines.
Additionally, in January 2019
Vista announced that high pressure grinding roll crusher and ore
sorting tests on 5 tonnes of high-grade samples confirmed previous
ore sorting test results. The material from those tests is
now being used to confirm the Company's expectation of gold
recoveries above 90% over a broad range of ore head grades.
Analysis indicates that each 1% improvement in gold recoveries
could add approximately 0.5% to Mt Todd's after-tax IRR, and
approximately $25 million to
after-tax NPV5%.
Frederick H. Earnest, President
and Chief Executive Officer, commented, "2018 was a productive year
for Vista. We successfully demonstrated the positive economic
impact of the testing programs and design changes completed over
the previous 16 months. Subsequently, we identified new
optimization opportunities that we expect will have additional
positive impacts on the Mt Todd project economics. With the
project optimization testing programs coming to a conclusion, we
plan to release an updated PFS for the Mt Todd gold project in the
second quarter of this year. We expect this study will
further demonstrate the positive impacts of the recently improved
gold prices, weaker Australian dollar, and improved gold recovery
resulting from a finer final grind size than was thought to be
achievable in January 2018."
Summary of 2018 Financial Results
We reported a net loss of $8.7
million or $0.09 per share for
the year ended December 31, 2018. The
principal components of this loss are: $10.8
million of operating expenses which include a $1.0 million asset impairment charge related to
our used mill equipment; a $1.7
million mark-to-market gain on our investment in Midas Gold
Corp; and interest and other income of $0.4
million.
Our working capital at December 31,
2018 totaled approximately $13.2
million, including cash and short-term investments
(comprised of government securities) of approximately $8.1 million. The Company currently has no
debt.
Management Conference Call
A conference call with management to review our financial
results for the fiscal year ended December
31, 2018 and to discuss corporate and project activities is
scheduled for Monday February 27,
2019 at 2:30 p.m. MST.
Participant Toll Free: 844-898-8648
International: 647-689-4225
Conference ID: 2155425
This call will also be web-cast and can be accessed at the
following web location:
http://event.on24.com/r.htm?e=1944360&s=1&k=D1B06551AE5A926700E64154DE175A33
This call will be archived and available at www.vistagold.com
after February 27, 2019. Audio
replay will be available for 21 days by calling toll-free in
North America: 855-859-2056,
passcode 2155425.
If you are unable to access the audio or phone-in on the day of
the conference call, please email questions to Paula Shade (email: pshade@vistagold.com), and
we will try to address these questions prior to or during the
conference call.
All dollar amounts in this press release are in U.S.
dollars.
About Vista Gold Corp.
The Company is a well-funded gold project developer. The
Company's principal asset is its flagship Mt Todd gold project in
Northern Territory, Australia. Mt Todd is the largest
undeveloped gold project in Australia.
For further information, please contact the Company 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 our
belief that with a modified PFS grinding circuit, including fine
grinding capability, it is possible to improve gold recoveries in
excess of 90% with no increase in process area power requirements;
our expectation that gold recoveries above 90% over a broad range
of ore head grades is possible; our belief that each 1% improvement
in gold recoveries could add approximately 0.5% to Mt Todd's
after-tax IRR, and approximately $25
million to after-tax NPV5%; our plan to release
an updated PFS for the Mt Todd gold project in the second quarter
of this year; our expectation that this study will further
demonstrate the positive impacts of the recently improved gold
prices, weaker Australian dollar, and improved gold recovery
resulting from a finer final grind size; and our expectation that
new optimization opportunities that we have identified will have
additional positive impacts on the Mt Todd project
economics 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 the Company
operates; risks due to legal proceedings; risks relating to
political and economic instability in certain countries in which
the Company 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 on March 6, 2018 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.
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SOURCE Vista Gold Corp.