Vista Gold Announces Feasibility Study Delivering 7 Million Ounce Gold Reserve Underpinning Large-Scale Production at High Operating Margins over a 16-Year Mine Life
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__________________ NEWS _________________
Vista Gold Announces Feasibility Study Delivering 7 Million Ounce Gold Reserve
Underpinning Large-Scale Production at High Operating Margins over a 16-Year Mine Life
Denver, Colorado, February 9, 2022 – Vista Gold Corp. (“Vista” or the “Company”) (NYSE American and TSX:
VGZ) today announced the results of the feasibility study (the “FS”) for its 100% owned Mt Todd gold project (“Mt
Todd” or the “Project”) in the Northern Territory, Australia (“NT”). Gold reserves increased 19% to 6.98 million
ounces resulting in average annual production of 479,000 ounces of gold during the first seven years of commercial
operations. With economics based on Q4 2021 costs, the Project is projected to deliver compelling cashflows over a
16-year mine life.
Highlights of the FS for a 50,000 tonne per day (“tpd”) project include:
After-tax NPV5% of $999.5 million and IRR of 20.6% at a $1,600 gold price and a $0.71 Fx rate(1);
After-tax NPV5% of $1.5 billion and IRR of 26.7% at a $1,800 gold price and $0.71 Fx rate;
After-tax cash flow at a $1,800 gold price of $2.1 billion for years 1-7 of commercial operations;
19% increase in proven and probable mineral reserves, now estimated to be 6.98 million ounces of gold (280.4
million tonnes at 0.77 grams of gold per tonne (“g Au/t”)) at a cut-off grade of 0.35 g Au/t; life of mine grade
to the grinding circuit after ore sorting of 0.84 grams of gold per tonne;
Average annual life of mine production of 395,000 ounces, including average annual production of 479,000
ounces of gold during the first seven years of commercial operations;
Life of mine average gold recovery of 91.6%;
Average cash costs of $817 per ounce (life of mine), including average cash costs of $752 per ounce during
the first seven years of commercial operations(2);
Average all-in sustaining cost (“AISC”) of $928 per ounce (life of mine), including average AISC of $860 per
ounce during the first seven years of commercial operations;
Mine life of 16 years (increase of 3 years); and
Initial capital requirements of $892 million (8% increase), which reflects the use of a third-party
owner/operator of the power plant.
(1) All dollar amounts stated herein are in U.S. currency and are expressed as $ unless specified otherwise. All foreign exchange (“Fx") rates are in U.S.
dollars per Australian dollar.
(2) Cash costs per ounce and AISC per ounce are non-GAAP financial measures. See “Note Regarding Non-GAAP Financial Measures” below for a
discussion on non-GAAP financial measures and a reconciliation to U.S. GAAP measures.
Vista’s President and CEO, Frederick H. Earnest, commented, “The FS affirms the strength of Mt Todd’s gold
production capacity and ability to deliver solid economic results at a time when inflationary pressures are having
significant impacts on operating mines and development projects alike. Completion of the FS represents another
major step in de-risking Mt Todd and readying the Project for development. The scale, quality of work completed and
location of Mt Todd, together with the FS and the fact that all major authorizations for development have been
obtained, distinguish Mt Todd as a unique development opportunity. We believe the results of the FS will appeal to
many potential partners, investors and lenders and allow us to evaluate a broad range of development alternatives as
we continue to focus on maximizing shareholder value. (CEO Video)
Trading Symbol: VGZ
NYSE American and Toronto Stock Exchanges
7961 Shaffer Parkway
Suite 5
Littleton, CO 80127
Phone: 720-981-1185
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With Q4 2021 costs, the FS reflects the inflationary pressures being faced currently by all operators in the mining
industry. While we believe this inflationary trend is transitory, the resilience of Mt Todd is amply demonstrated by the
robust project economics reflected in the FS. Mt Todd’s attributes, together with the deep understanding of the various
Project components create valuable optionality in the approach to its development.
Mt Todd’s economic returns benefit from the increase in the gold reserve estimate, favorable results of the power
plant trade-off study and slightly lower energy costs in the NT. In view of the current gold price, we increased the
gold price used in the reserve estimate from $1,000 to $1,125 and changed the cut-off grade from 0.40 g Au/t to 0.35
g Au/t. These changes, while very conservative, significantly increased the reserve estimate from 5.85 million ounces
to 6.98 million ounces. Our power plant trade-off study identified a number of highly-credentialled, well-capitalized
power generating companies. Our decision to use a third-party power provider has resulted in important positive
impacts to our capital costs and insulates the Project from certain construction and operating risks while maintaining
what we believe to be attractive operating costs. While our operating costs have increased as a result of higher labor,
reagent, grinding media and over-the-fence power costs, our core energy costs yield some offsetting savings.
In addition to securing the approval of the Mining Management Plan since our last technical report, we have
modernized our agreement with the Jawoyn Aboriginal Association Corporation (the “Jawoyn”). We continue to
enjoy a close working relationship and their strong support for the Project. The economic returns reflect the increased
royalty to the Jawoyn (in lieu of the previous right to a 10% direct Project ownership) as reported in November
2020.”
Mr. Earnest concluded, “Our attention will now focus more intensely on increasing shareholder value and the
realization of the intrinsic value of Mt Todd. We believe Mt Todd’s location, scale, economics, permitting status,
and extensive technical work represent a unique near-term development opportunity and allow us to evaluate a broad
range of development partners, structures and alternatives as we continue to focus on maximizing shareholder value.”
Sabry Abdel Hafez, Ph.D., P.Eng., Rex Bryan, Ph.D., Amy Hudson, Ph.D, CPG, SME REM, April Hussey, P.E.,
Chris Johns, M.Sc., P.Eng., Max Johnson, P.E., , Vicki Scharnhorst, P.E., and Keith Thompson, CPG, member
AIPG, on behalf of Tetra Tech, Thomas Dyer, P.E., SME REM, on behalf of Respec, Dr. Deepak Malhotra, Ph.D.,
SME REM on behalf of Pro Solv, LLC, Zvonimir Ponos, BE, MIEAust, CPeng, NER on behalf of Tetra Tech
Proteus, are each a Qualified Person as defined under subpart 1300 of Regulation S-K under the United States
Securities Exchange Act of 1934, as amended (“S-K 1300”) and an independent Qualified Person as defined by
Canadian National Instrument 43-101 – Standards of Disclosure of Mineral Projects (“NI 43-101”), and prepared
or supervised the preparation of the information that forms the basis for the scientific and technical information
disclosed herein and have reviewed this press release and consented to its release. Dr. Deepak Malhotra has verified
the metallurgical testing program and data in respect of the process improvements. For additional information
applicable to the FS, including data verification, quality assurance and control, and key assumptions; and for other
matters relating to the Project, see Vista’s most recent Annual Report Form 10-K as filed on EDGAR at
www.sec.gov/edgar.shtml and on SEDAR at www.sedar.com.
Overview
The technical aspects of the FS are underpinned by extensive metallurgical testing and stringent design criteria that
continue to reflect Vista’s rigorous approach to ensuring Mt Todd will meet design and operating specifications. This
includes utilizing modern, proven technologies and oversizing processing equipment to best ensure throughput
capacity. The FS also incorporates provisions of the recently approved Mt Todd Mine Management Plan, which will
subsequently be amended to align with design changes in the FS.
A summary of the FS results is presented in the table below.
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(1) Economics presented using $1,600/oz gold and a $0.71 Fx rate.
(2) Years 1 - 7 start after the 6 month commissioning and ramp up period.
(3) Life of Mine is from start of commissioning and ramp up through final closure.
(4) Post-sorted grinding circuit feed grade (g Au/t).
(5) Cash costs per ounce and AISC per ounce are non-GAAP financial measures. See “Note Regarding Non-GAAP Financial Measures”
below for a discussion on non-GAAP financial measures and a reconciliation to U.S. GAAP measures.
Sensitivity Analysis
The following table provides additional details of the Project’s after-tax economics at variable gold prices and exchange
rate assumptions. The Project economics are robust at the FS gold price of $1,600 per ounce and an Fx rate of $0.71
and even more compelling at today’s market conditions. Using a gold price of $1,800 per ounce and an Fx rate of
$0.71, the after-tax NPV5% is $1.5 billion and the IRR is 26.7%. For every $100 increase in gold price, the Project
NPV5% increases by approximately $230 million.
Note: NPV5% values in $ millions. Changes in Fx rates are only applied to operating costs and not applied to either initial or
sustaining capital costs.
Capital Costs
Management placed a high priority on managing capital costs while maintaining the operating cost benefits of a large-
scale project. Initial capital costs increased 8% and benefited from savings associated with a favorable trade-off study
that supports using a third-party power provider to build, own and operate the power plant at only modestly higher
power costs to the Project.
Capital expenditures for initial and sustaining capital requirements are summarized in the following table.
Life of Mine (3)
(16 years)
Average Plant Feed Grade (g Au/t)
(4) 1.01 0.84
Average Annual Gold Production (koz) 479 395
Average Recovery (%) 92.2% 91.6%
Total Payable Gold (koz) 3,353 6,313
Cash Costs ($/oz)
(5) $752 $817
AISC ($/oz)
(5) $860 $928
Strip Ratio (waste:ore) 2.77 2.51
Initial Capital (millions) $892
After-tax Payback (months) 47
After-tax NPV5% (millions) $999.5
IRR (after-tax) 20.6%
Years 1-7 (2)50,000 tpd Project (1)
Gold Price $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900
FX Rate NPV (5) IRR (%) NPV (5) IRR (%) NPV (5) IRR (%) NPV (5) IRR (%) NPV (5) IRR (%) NPV (5) IRR (%) NPV (5) IRR (%)
0.74 $214 8.6 $453 12.4 $674 15.7 $911 19.0 $1,144 22.1 $1,372 25.0 $1,589 27.7
0.71 $304 10.2 $541 14.0 $762 17.3 $999.5 20.6 $1,229 23.7 $1,458 26.7 $1,674 29.4
0.68 $393 11.9 $626 15.6 $851 19.0 $1,085 22.3 $1,313 25.7 $1,543 28.5 $1,758 31.3
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Note: Components may not add to totals due to rounding.
Operating Costs
Operating costs continue to benefit from the economies of scale associated with a 50,000 tonne per day process plant,
a low 2.5:1 stripping ratio (unchanged from the last technical report), and a locally-based labor force. Operating costs
were impacted by the additional royalty granted to the Jawoyn in exchange for their prior right to a 10% participating
interest in the Project.
Note: Jawoyn royalty and refinery costs calculated at $1,600 per ounce gold and $0.71 exchange rate. May not add to totals due to rounding.
(1) Cash costs per tonne processed and cash costs per ounce are non-GAAP financial measures. See “Note Regarding Non-GAAP Financial
Measures” below for a discussion on non-GAAP financial measures and a reconciliation to U.S. GAAP measures.
Mining and Production
The mine plan contemplates that 280.4 million tonnes of ore, containing an estimated 6.98 million ounces of gold at an
average grade of 0.77 g Au/t, will be processed over the life of the Project. Total recovered gold is expected to be 6.31
million ounces with average annual gold production expected to be 395,000 ounces. Average annual production over
the first seven years of commercial operations is expected to be 479,000 ounces. The Company expects commercial
production to commence after two years of construction and six months of commissioning and ramp-up.
Mining $81 $531
Process Plant $474 $28
Project Services $56 $89
Project Infrastructure $45 $8
Site Establishment & Early Works $24 $0
Management, Engineering, EPCM Services $100 $0
Preproduction Costs $27 $0
Contingency $86 $44
Sub-Total $892 $700
Asset Sale and Salvage $0 ($37)
Total Capital $892 $663
Total Capital Per Payable ounce gold $141 $105
Capital Expenditures 50,000 tpd Project Initial Capital
($ millions)
Sustaining
Capital
($ millions)
50,000 tpd Project
Operating Cost Per tonne
processed Per ounce Per tonne
processed Per ounce Per tonne
processed Per ounce
Mining $8.52 $315.97 $6.14 $323.60 $6.79 $301.55
Processing $9.39 $348.23 $9.38 $494.68 $9.44 $419.35
Site General and Administrative $1.06 $39.19 $0.94 $49.61 $0.99 $44.04
Water Treatment $0.26 $9.81 $0.24 $12.91 $0.29 $13.10
Tailings Management $0.08 $3.10 $0.08 $4.41 $0.08 $3.74
Refining $0.09 $3.45 $0.07 $3.50 $0.08 $3.48
Jawoyn Royalty $0.86 $32.00 $0.61 $32.00 $0.72 $32.00
Total Cash Costs (1)
$20.28 $751.75 $17.47 $920.71 $18.40 $817.25
Life of Mine CostYears 1-7 Years 8-14
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The table below highlights the FS production schedule. The shaded portion of the table demonstrates the benefit of
sorting that reduces the tonnage processed by 10%, increases the processed grade by a similar percentage, and results
in cost savings for grinding, leaching and tailings handling.
(*) Six months commissioning and ramp-up period ahead of full production.
(1) Years 16 and 17 process Heap Leach ore after the pit ore is exhausted.
(2) Components may not add to totals due to rounding.
As demonstrated in the chart below, the 19% increase in gold reserves sustains a strong production profile over the first
seven years with an average of 479,000 ounces of gold per year. The Project also benefits from three additional years
of mine life. This reserve growth successfully offsets much of the inflationary pressure on capital and operating costs
currently affecting the entire mining sector. The Company believes resource conversion and exploration during the
early years of the Project will contribute to improved gold production in years 9 through 11 and further extend the life
of the Project.
Years Pit Ore
Mined
(kt)
Waste
Mined
(kt)
Ore
Crushed
(kt)
Crushed
Grade
(g/t)
Contained
Ounces
(kozs)
Ore to CIP
(Post Sorting)
(kt)
CIP Grade
(g/t)
Contained
Ounces
(kozs)
Gold
Produced
(kozs)
Recovery
(%)
-1 7,188 14,066 0 0 0 0 0.00 0 0 0
1(*) 18,216 25,904 12,334 1.10 436 11,100 1.21 431 399 92.6%
2 30,578 38,623 17,750 0.88 503 15,975 0.97 497 458 92.1%
3 19,696 63,199 17,750 1.04 594 15,975 1.14 587 542 92.5%
4 15,218 69,774 17,799 0.66 378 16,019 0.73 373 341 91.3%
5 27,591 66,264 17,750 0.79 451 15,975 0.87 445 408 91.7%
6 25,499 74,510 17,823 1.03 591 16,041 1.13 583 539 92.4%
7 13,229 77,291 17,750 0.97 554 15,975 1.06 546 504 92.3%
8 7,779 71,277 17,774 0.69 392 15,997 0.75 386 352 91.2%
9 13,866 59,499 17,774 0.52 295 15,997 0.57 291 261 89.8%
10 14,523 50,082 17,750 0.55 312 15,975 0.60 308 277 90.1%
11 20,830 40,490 17,750 0.61 347 15,975 0.67 343 311 90.7%
12 18,523 13,685 17,774 0.72 410 15,997 0.79 404 370 91.4%
13 11,307 4,388 17,774 0.76 433 15,997 0.83 428 391 91.6%
14 13,829 1,866 17,750 0.79 448 15,975 0.86 442 406 91.7%
15 9,149 412 17,750 0.78 446 16,120 0.85 440 403 91.6%
16 (1) 0 0 16,710 0.64 344 15,968 0.66 341 310 90.7%
17 (1)
0 0 2,612 0.54 45 2,612 0.54 45 41 89.8%
Total (2)
267,021 671,331 280,375 0.77 6,979 253,673 0.84 6,891 6,313 91.6%
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Operating Margin Summary
Note: Cash operating costs is a non-GAAP financial measure. See “Note Regarding Non-GAAP Financial Measures” below for a discussion
on non-GAAP financial measures and a reconciliation to U.S. GAAP measures.
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Mineral Resources and Mineral Reserves
The tables below present the estimated mineral resources and mineral reserves for the Project. The effective date of the
mineral resources and mineral reserves estimates is December 31, 2021. The following mineral resources and mineral
reserves were prepared in accordance with both S-K 1300 standards and Canadian Institute of Mining, Metallurgical
and Petroleum definition standards.
Notes:
1) Measured & Indicated Mineral Resources include Proven and Probable Reserves.
2) Batman and Quigleys mineral resources are quoted at a 0.40g-Au/t cut-off grade. Heap Leach resources are the average grade of the heap, no cut-off
applied.
3) Batman: Mineral resources constrained within a $1,300/oz gold Whittle TM pit shell. Pit parameters: Mining Cost $1.50/tonne, Milling Cost $7.80/tonne
processed, G&A Cost $0.46/tonne processed, G&A/Year 8,201 K US4, Au Recovery, Sulfide 85%, Transition 80%, Oxide 80%, 0.2g-Au/t minimum for
resource shell.
4) Quigleys: Resources constrained within a $1,300/oz gold Whittle TM pit shell. Pit parameters: Mining cost $1.90/tonne, Processing Cost $9.779/tonne
processed, Royalty 1% GPR, Gold Recovery Sulfide, 82.0% and Ox/Trans 78.0%, water treatment $0.09/tonne, Tailings $0.985/tonne.
5) Differences in the table due to rounding are not considered material. Differences between Batman and Quigleys mining and metallurgical parameters are
due to their individual geologic and engineering characteristics.
6) Rex Bryan of Tetra Tech is the QP responsible for the Statement of Mineral Resources for the Batman, Heap Leach Pad and Quigleys deposits.
7) Thomas Dyer of RESPEC is the QP responsible for developing the resource WhittleTM pit shell for the Batman Deposit.
8) The effective date of the Heap Leach, Batman and Quigleys resource estimate is December 31, 2021.
9) Mineral resources that are not mineral reserves have no demonstrated economic viability and do not meet all relevant modifying factors.
Notes:
1) Thomas L. Dyer, P.E., is the QP responsible for reporting the Batman Deposit Proven and Probable Mineral Reserves.
2) Batman deposit mineral reserves are reported using a 0.35 g Au/t cutoff grade.
3) Deepak Malhotra is the QP responsible for reporting the heap-leach pad mineral reserves.
4) Because all the heap-leach pad reserves are to be fed through the mill, these mineral reserves are reported without a cutoff grade applied.
5) The mineral reserves point of reference is the point where material is fed into the mill.
6) The effective date of the mineral reserve estimates is December 31, 2021.
Project Description
Gold mineralization in the Batman Deposit occurs in sheeted veins within silicified greywackes/shales/siltstones. The
Batman deposit strikes north-northeast and dips steeply to the east. Higher grade zones of the deposit plunge to the
south. The core zone is approximately 200-250 meters wide and 1.5 kilometers long, with several hanging wall
structures providing additional width to the deposit. Mineralization is open at depth as well as along strike, although
the intensity of mineralization weakens to the north and south along strike.
Tonnes Grade Tonnes Grade Tonnes Grade Tonnes Grade
(000s) (g/t) (000s) (g/t) (000s) (g/t) (000s) (g/t)
Measured (M) 77,725 0.88 2,191 - - - 594 1.15 22 78,319 0.88 2,213
Indicated (I) 200,112 0.80 5,169 13,354 0.54 232 7,301 1.11 260 220,767 0.80 5,661
Measured &
Indicated 277,837 0.82 7,360 13,354 0.54 232 7,895 1.11 282 299,086 0.82 7,874
Inferred (F) 61,323 0.72 1,421 - - - 3,981 1.46 187 65,304 0.77 1,608
Mt Todd Gold Project - Mineral Resources
Contained
Ounces
(000s)
Contained
Ounces
(000s)
Contained
Ounces
(000s)
Total
Contained
Ounces
(000s)
Batman Deposit Heap Leach Pad Quigleys Deposit
Tonnes
(000)
Grade
(g/t)
Contained
Ounces
(000)
Tonnes
(000)
Grade
(g/t)
Contained
Ounces
(000)
Tonnes
(000)
Grade
(g/t)
Contained
Ounces
(000)
Proven 81,277 0.84 2,192 - - - 81,277 0.84 2,192
Probable 185,744 0.76 4,555 13,354 0.54 232 199,098 0.75 4,787
Mt Todd Gold Project - Mineral Reserves - 50,000 tpd, 0.35g Au/t cutoff and US$1,125 per ounce LG Pit
0.77 6,979Proven & Probable
Batman Deposit Heap Leach Pad Total P&P
267,021 0.79 6,747 13,354 0.54 232 280,375
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The Project is designed to be a conventional, owner-operated, open-pit mining operation that will utilize large-scale
mining equipment in a drill/blast/load/haul operation. The Company continues to evaluate the potential use of contract
mining and/or autonomous truck haulage. Ore is planned to be processed in a comminution circuit consisting of a
gyratory crusher, two cone crushers, two high pressure grinding roll crushers with primary grinding by two ball mills
and secondary grinding by 10 FLSmidth VXP mills. Vista plans to recover gold in a conventional carbon-in-pulp
recovery circuit.
Opportunities for Adding Value
Additional resources are predominantly at depth and lateral along strike. A portion of the Inferred Mineral Resources
are contained within the existing pit design and are currently included in the mine plan as waste material. Potential to
convert part of the mineral resources to mineral reserves represents an opportunity to improve existing LOM economics
and extend mine life.
The Company also has known mineral resources at the Quigleys Deposit, which is close to the planned processing
plant. The estimated grade of the Quigleys Deposit is higher than the estimated average grade of the Batman Deposit
and could provide a source of higher-grade feed in the mid years of the Project when the average grade of feed to the
plant is expected to decrease. Additional drilling and metallurgical testing are required to develop mine plans and
ultimately establish proven and probable mineral reserves at the Quigleys deposit.
Growth through exploration represents additional opportunity to add value at Mt Todd. Both the Batman Deposit and
Quigleys Deposit remain open. Recent drilling demonstrates the continuity of mineralization between these two
deposits. In addition, Vista controls over 1,500 sq. km of contiguous exploration licenses at the southeast end of the
Pine Creek Mining District. Various gold targets have been identified through early-stage, grass roots exploration
programs along the Cullen-Australis and Batman-Driffield structural corridors, the latter of which is the host to the
Batman Deposit. To-date, Vista’s exploration efforts have primarily focused on the Batman Deposit.
The FS uses a natural gas price comparable to other facilities that self-generate power in the NT. Due to the location of
the Project and its close proximity to the main NT natural gas transmission line, the Company believes that there is
significant opportunity to achieve a lower natural gas price upon commitment to a long-term gas delivery contract. This
belief is in part based on local expectations of significantly increased gas reserves in the Beetaloo Basin south of Mt
Todd.
Conference Call Details
A conference call and webcast to discuss highlights of the FS will be held Wednesday, February 9, 2022 at 4:00 p.m.
EDT (2:00 p.m. MDT).
Toll-free in North America: 844-898-8648
International: 647-689-4225
Confirmation Code: 5074108
To participate in the webcast and view the slide presentation, please follow the steps below at least 15 minutes prior
to the start time:
Step 1 – Registration Page:
https://onlinexperiences.com/Launch/QReg/ShowUUID=803ED6AB-ABDC-4C7F-B282-A98D4DCB25D7
Step 2 – Login Page:
https://onlinexperiences.com/Launch/Event/ShowKey=187237