Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today announced its unaudited financial results for the
quarter ended September 30, 2021, which were highlighted by
reported cash of $16.0 million and substantial progress toward
completion of the Definitive Feasibility Study (“DFS”) for Vista’s
100% owned Mt Todd gold project (“Mt Todd” or the “Project”). All
dollar amounts in this press release are in U.S. dollars.
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Figure 1 – Relationship of known
structural trends relative to existing mineral deposits and
exploration targets. (Graphic: Business Wire)
Frederick H. Earnest, President and Chief Executive Officer of
Vista, commented, “Our activities during the third quarter focused
on increasing shareholder value. The DFS is nearing completion and
remains on budget. Mine planning using a higher gold price is
expected to increase reserves and extend the life of mine. We
started Phase 3 drilling of our exploration program and plan to
drill an additional 2,650 meters, for approximately 9,000 meters of
total drilling. Results of the drilling program have been very
positive. Every drill hole has intersected mineralization,
consistent with our geologic model.”
Mr. Earnest continued, “We significantly strengthened our
balance sheet, with quarter-end cash of approximately $16.0
million. We believe our existing cash will fund the Company’s value
enhancing programs, continue to fund working capital, and
strengthen our position in discussions with potential
partners.”
Important Recent Developments
- The Mt Todd DFS engineering and design are 80% complete, on
track and on budget;
- Completed Phase 2 of the ongoing exploration drilling program
and started Phase 3 drilling; and
- Ended Q3 2021 with cash and cash equivalents of $16.0 million
and zero debt.
Definitive Feasibility Study
Engineering and design for the Mt Todd DFS are 80% complete.
With new mine plans at higher gold prices, the DFS is expected to
result in a larger reserve and longer mine life. This DFS will
address recommendations from the 2019 pre-feasibility study,
reflect minor updates of the Project design to be consistent with
the approved Mine Management Plan, and advance the level of
engineering and detailed costing in all areas of the Project. We
are also evaluating several trade-off opportunities (e.g., contract
power generation, contract mining and autonomous truck
haulage).
Accretive Development Strategy
The process to seek a strategic partner is advancing, despite
COVID-related travel restrictions. In particular, mining companies
outside Australia have been hindered in their ability to complete
site visits and perform other in-country due diligence activities.
Nonetheless, we continued to see strong interest in Mt Todd. The
Australian government recently announced it will begin to ease
international travel restrictions for its fully vaccinated citizens
and permanent residents beginning in November. The Australian
government is working to define a plan to allow international
travel by foreigners, but this will likely not occur until sometime
in early 2022. Once Australia’s borders re-open, we expect
opportunities for on-site due diligence to increase.
Positive Drilling Results
To demonstrate the resource potential at Mt Todd, the Company is
drilling exploration targets adjacent to the Batman deposit and
extending northeast to the Quigleys deposit, all within our mining
licenses. The drilling program has focused on identifying
connecting structures and mineralization between previously
interpreted discreet deposits and the potential for efficient
resource growth with future drilling along strike from the Batman
deposit approximately 1.9 Km north to the Golf-Tollis/Penguin
targets. Two principal types of structures are present in Figure 1;
the red dashed lines represent structures with Batman-style sheeted
vein mineralization and the light blue lines represent the
connecting structures. The dark blue dashed lines show what are
believed to be faults.
To date, Vista has completed 18 planned holes and drilled 6,365
meters in Phases 1 and 2 of the current program. Every drill hole
has intersected mineralization consistent with our geologic model.
Phase 3 drilling started in September and will include an
additional 2,650 meters of drilling extending to Quigleys. Drilling
is expected to continue into 2022. Our goal is to demonstrate the
regional potential along a ~5.4 Km portion of the +24 Km
Batman-Driffield Trend and to outline areas where future drilling
can be undertaken to efficiently define additional gold
resources.
Summary of Q3 2021 Financial Results
On September 30, 2021, cash and cash equivalents totaled $16.0
million, which included net proceeds of $12.3 million from the
Company’s July 2021 public offering.
Vista reported a net loss of $3.1 million or $0.02 per share for
the three months ended September 30, 2021, compared to net income
of $4.2 million or $0.05 per share reported for the three months
ended September 30, 2020. The three month period ended September
30, 2020 included a gain of $3.5 million related to the sale of the
Los Reyes project. The loss for the current quarter was in line
with management’s expectations.
Management Conference Call
Management’s quarterly conference call to review financial
results for the quarter ended September 30, 2021 and to discuss
corporate and project activities is scheduled on Thursday, October
28, 2021 at 10:00 am MDT (12:00 pm EDT).
Participant Toll Free: (844) 898-8648 Participant International:
(647) 689-4225 Conference ID: 8590039
This call will also be archived and available at
www.vistagold.com after October 28, 2021. Audio replay will be
available through November 18, 2021 by calling toll-free in North
America (855) 859-2056 or (404) 537-3406.
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.
About Vista Gold Corp.
Vista is a gold project developer. The Company’s flagship asset
is the Mt Todd gold project located in the Tier 1, mining friendly
jurisdiction of Northern Territory, Australia. Situated
approximately 250 km southeast of Darwin, Mt Todd is the largest
undeveloped gold project in Australia and, if developed as
presently designed, would potentially be Australia’s fourth largest
gold producer on an annual basis, with lowest tertile in-country
and global all-in sustaining costs. All major operating and
environmental permits have now been approved.
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 our
belief that management is nearing completion of a DFS; our
expectation that the DFS will address recommendations from the 2019
pre-feasibility study and include minor updates of the Project
design to be consistent with the approved Mining Management Plan
and engineering and detailed costing in areas of the Project; our
belief that using a higher gold price for mine planning purposes is
expected to increase reserves and the life of mine; our expectation
that our existing cash will fund the Company’s value enhancing
programs, continue to fund working capital, and strengthen our
position in discussions with potential partners; our expectation to
drill an additional 2,650 meters in Phase 3 of the drill program
and continue drilling into 2022; our expectation to advance on-site
due diligence activities with potential partners once Australia’s
borders re-open; and our belief that Mt Todd is the largest
undeveloped gold project in Australia and, if developed as
presently designed, would potentially be Australia’s fourth largest
gold producer on an annual basis, with lowest tertile in-country
and global all-in sustaining costs 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: our approved business plans, exploration and assay
results, results of our test work for process area improvements,
mineral resource and reserve estimates and results of preliminary
economic assessments, prefeasibility studies and feasibility
studies on our projects, if any, our experience with regulators,
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, uncertainties inherent in the exploration of mineral
properties, the possibility that future exploration results will
not be consistent with the Company’s expectations; there being no
assurance that the exploration program or programs of the Company
will result in expanded mineral resources; 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 February 25, 2021 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.
Cautionary Note to United States Investors
The United States Securities and Exchange Commission (“SEC”)
limits disclosure for U.S. reporting purposes to mineral deposits
that a company can economically and legally extract or produce. The
technical reports referenced in this press release uses the terms
defined in Canadian National Instrument 43-101 – Standards of
Disclosure for Mineral Projects (“NI 43-101”) and the Canadian
Institute of Mining, Metallurgy and Petroleum (the “CIM”) – CIM
Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (the “CIM Definition
Standards”). These standards are not the same as reserves under the
SEC’s Industry Guide 7 and may not constitute reserves or resources
under the SEC’s newly adopted disclosure rules to modernize mineral
property disclosure requirements (“SEC Modernization Rules”), which
became effective February 25, 2019 and will be applicable to the
Company in its annual report for the fiscal year ending December
31, 2021. Under the currently applicable SEC Industry Guide 7
standards, a “final” or “bankable” feasibility study is required to
report reserves, the three-year historical average price is used in
any reserve or cash flow analysis to designate reserves and all
necessary permits and government approvals must be filed with the
appropriate governmental authority. Additionally, the technical
reports uses the terms “measured resources”, “indicated resources”,
and “measured & indicated resources”. We advise U.S. investors
that while these terms are Canadian mining terms as defined in
accordance with NI 43-101, such terms are not recognized under SEC
Industry Guide 7 and normally are not permitted to be used in
reports and registration statements filed with the SEC. Mineral
resources described in the technical reports have a great amount of
uncertainty as to their economic and legal feasibility. The SEC
normally only permits issuers to report mineralization that does
not constitute SEC Industry Guide 7 compliant “reserves” as
in-place tonnage and grade, without reference to unit measures.
“Inferred resources” have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that any or all part of an
inferred resource will ever be upgraded to a higher category.
U.S. Investors are cautioned not to assume that any part or all
of mineral deposits in these categories will ever be converted into
SEC Industry Guide 7 reserves.
Under the SEC Modernization Rules, the definitions of “proven
mineral reserves” and “probable mineral reserves” have been amended
to be substantially similar to the corresponding CIM Definition
Standards and the SEC has added definitions to recognize “measured
mineral resources”, “indicated mineral resources” and “inferred
mineral resources” which are also substantially similar to the
corresponding CIM Definition Standard. However there are
differences between the definitions and standards under the SEC
Modernization Rules and those under the CIM Definition Standards
and therefore once the Company begins reporting under the SEC
Modernization Rules there is no assurance that the Company’s
mineral reserve and mineral estimates will be the same as those
reported under CIM Definition Standards as contained in the
technical reports prepared under CIM Definition Standards or that
the economics for the Mt Todd project estimated in such technical
reports will be the same as those estimated in any technical report
prepared by the Company under the SEC Modernization Rules in the
future.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211027006120/en/
Pamela Solly, Vice President of Investor Relations (720)
981-1185
Vista Gold (TSX:VGZ)
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