Potential For Gold Recovery Improvements

 

DENVER, CO - Vista Gold Corp. reported a net loss of $2.1 million for the three-month period ended September 30, 2018. The loss is comprised of $1.9 million of operating expenses, a $0.3 mark-to-market loss on the investment in Midas Gold Corp., offset by other income of $0.1 million. Working capital at September 30, 2018 totaled approximately $15.0 million, including cash and short-term investments. 

During the quarter, Vista completed grinding and leaching tests indicating that gold recoveries exceeding 90% may be achieved for the Mt Todd gold project, depending on final grind size.  These tests of the second stage grinding circuit suggest that the Mt Todd ore can be ground to a finer final product size with lower power consumption than previously estimated.  Leaching the finer final product size material again confirmed higher recoveries at finer grind sizes. Based on these initial results, Vista has commenced additional testing to: (a) confirm results over a broad range of feed grades, (b) justify design changes and (c) support a possible update of the project economics.

Frederick H. Earnest, President and Chief Executive Officer, commented, "We are excited about the potential for the gold recovery improvements at Mt Todd, indicated by the test results announced this quarter.  Based on those results we are now targeting a gold recovery greater than 90% as compared to 86.4% estimated in our January 2018 PFS. We believe these improved recoveries can be achieved without any increase in power consumption or capital costs. We estimate that each 1% improvement in gold recovery adds about 0.5% to Mt Todd's after-tax IRR, and about $25 million to after-tax NPV5.

To advance our testing of the second stage grinding circuit to feasibility level, we are conducting additional fine grinding tests on samples representing a variety of ore types from Mt Todd and covering a range of head grades.  These grinding tests will be followed by leaching tests to determine expected recoveries for a range of ore grades at various finer grind sizes.  The tests will also provide further data regarding the power requirements and grinding media consumption. This is a continuation of our strategy to add value at a relatively low cost.”

The company’s address is 7961 Shaffer Parkway, Suite 5, Littleton, CO 80127, (720) 981-1185, fax: (720) 981-1186.