Vista Gold to boost Mt Todd Gold Project with new exploration program
Vista Gold Corp. (NYSE American and TSX: VGZ), a prominent player in the gold mining industry, has revealed plans for a significant exploration program at its 100%-owned Mt Todd gold project. This initiative, based on extensive data from the Company’s 2022 feasibility study and 2023 internal scoping-level study, aims to increase near-surface gold resources while exploring a staged development strategy.
Advantages of Staged Development
The proposed staged development strategy presents a notable advantage by requiring considerably lower initial capital investment. According to the 2023 Scoping Study, a project with a 5 million tonne per year capacity could be designed and constructed with less than US$350 million, achieving an initial production of 150,000 – 200,000 ounces of gold annually at competitive costs.
Vista Gold Announces Strategic Drilling Plan for Expansion of Mt Todd Gold Project Resources
CEO’s Perspective on Project Viability
Frederick Earnest, President and CEO of Vista Gold Corp., expressed confidence in the smaller-scale project’s technical viability and economic attractiveness. He emphasized the potential value of this alternative development strategy, highlighting opportunities for reduced initial capital, lower development risk, and future growth supported by project cash flows.
Targeted Drilling Program
Vista plans a targeted drilling program covering 6,000 – 7,000 meters, focusing on areas adjacent to the Batman deposit. The aim is to upgrade inferred gold resources to measured and indicated categories and define uncategorized mineralization. Mr. Earnest believes that enhancing shallow gold resources adjacent to the pit could significantly increase the project’s value.
Technical Studies and Expansion Alternatives
As the drilling progresses, Vista Gold expects to conduct additional technical studies to support the staged development strategy. These studies will include confirming mineralogy and metallurgical characteristics of new gold resources, conducting tradeoff studies for expansion alternatives, and developing layouts for processing plants and other facilities.
Conclusion
The Mt Todd gold project, regarded as one of the largest development stage opportunities in Australia, continues to demonstrate compelling economics. Vista Gold’s announcement marks a significant step in its strategy to maximize shareholder value and reduce development risk, potentially transforming the landscape of gold mining in Australia.