Vista Announces Paredones Amarillos Feasibility Study Results and Provides Update on Permitting Status for the Project



    DENVER, Sept. 8 /CNW/ -- Vista Gold Corp. ("Vista" or the "Company")
(Amex:   VGZ; TSX) is pleased to announce the results of the feasibility study
("Study") on the Company's wholly-owned Paredones Amarillos gold project
located in Baja California Sur ("BCS"), Mexico.  The Study was prepared by SRK
Consulting of Lakewood, Colorado ("SRK").  The technical portions of the Study
contracted directly by Vista and supervised by SRK were completed by Mine
Development Associates (resource/reserve estimates, mine planning and mining
capital/operating cost estimates), KD Engineering (process engineering,
infrastructure design and process capital/operating cost estimates), Resource
Development, inc. (metallurgical testing and review), Golder Associates Inc.
(waste rock characterization and tailings impoundment facility
design/construction cost estimates), Corporacion Ambiental de Mexico S.A. de
C.V. (environmental and socio-economic baseline), Veolia Water Systems Mexico
S.A. de C.V. (desalination plant design and capital/operating costs) and SRK
(pit slope stability evaluation, closure plan/cost estimates and economic
analysis).  Dr. Neal Rigby, CENG, MIMMM, PhD, Principal of SRK Consulting, an
independent Qualified Person as defined by Canadian National Instrument 43-101
("NI 43-101"), prepared or supervised the preparation of material on behalf of
SRK Consulting.  Steven Ristorcelli, P. Geo. and Thomas Dyer, P. Eng., both of
Mine Development Associates, independent Qualified Persons as defined by NI
43-101, prepared or supervised the preparation of material on behalf of Mine
Development Associates.  Dr. Rigby, Mr. Ristorcelli and Mr. Dyer have reviewed
this press release and have consented to its release.  The feasibility study
will be filed on SEDAR in its entirety within the following 45 days.
    The highlights from the Study include the following estimates (all
currency amounts are in U.S. Dollars):

    
    Resource and Reserve Estimates
    

    
    Measured Resources (at a 0.4 g Au/tonne   9.390 million tonnes at 1.10 g
    cut-off): (1, 2)                          Au/tonne containing 332,000
                                              ounces of gold
    Indicated Resources (at a 0.4 g           61.216 million tonnes at 0.91 g
    Au/tonne cut-off): (1, 2)                 Au/tonne containing 1,787,000
                                              ounces of gold
    Proven and Probable Reserves (at a $700   37.95 million tonnes at 1.08 g/t
    gold price and 0.4 g Au/tonne             containing 1,315,000 ounces gold
    cut-off): (2, 4)
    

    
    Selected Operating, Cost and Return Estimates
    

    
    Stripping Ratio:                          3.57 (tonnes waste:tonnes ore)
    Life-of-Mine:                             9.5 years
    Life-of-Mine Gold Production:             1,203,000 ounces
    Average Annual Gold Production:           127,400 ounces per year (142,900
                                              ounces per year for the first
                                              five years)
    Pre-Production Capital Costs:             $196.7 million ($165 per ounce
                                              gold produced)
    Cash Operating Costs (life-of-mine        $419 per ounce gold produced
    average):                                 ($388 per ounce gold produced
                                              for the first five years)
    Internal Rate of Return @ $771 average
    gold price
    (Base Case Gold Price Profile):           21.0 % before-tax
                                              16.6 % after-tax
    General
    
    The Paredones Amarillos gold project is located approximately 55 km south
of La Paz in BCS, Mexico.  The Study includes a description of the geology,
mining and milling operations, tailings impoundment facility, desalination
plant, and all project-associated infrastructure, estimated resources and
reserves, and the proposed mining plan with the associated mining and
processing equipment.  The Paredones Amarillos deposit is a silicified shear
zone locally known as cataclasite.  The shear zone generally lies between the
granodiorite basement rock and a diorite cap.  The proposed pit is oriented
approximately east-west and would have two distinct lobes.  The metallurgical
recovery is estimated to be 91.5% for gold.
    
    Capital and Operating Cost Estimates
    
    Estimated Life-of-Mine average cash production costs are projected to be
US$419 per ounce, with lower costs of US$388 per ounce projected during the
first five years of production. Operating costs used diesel prices effective
as of May 2008 and energy prices effective as of the first quarter 2008.  Pre-
production capital costs, including contingency, owner's costs and working
capital, are estimated to be US$196.7 million or $165 per ounce of gold
produced.  Total capital costs including replacement and reclamation over the
life of the project are estimated to be US$191 per ounce of gold produced.
    
    Estimated Resources and Reserves
    
    A new resource estimate was completed, dated September 5, 2008, by Mine
Development Associates under the direction of Mr. Steven Ristorcelli, P. Geo.,
an independent Qualified Person as defined by NI 43-101.  The resource
estimate was prepared using industry standard software and estimation
methodologies.  Previous technical reports contain extensive geologic and
technical information related to the deposit for which the estimate is
prepared.  The last technical report was filed on SEDAR on June 27, 2007, and
is entitled the "Updated Technical Report Paredones Amarillos Project, Baja
California Sur, Mexico," and is dated June 20, 2007.  The drilling and
associated work used in the estimate was undertaken between 1974 and 2005, but
most of the drilling was completed between 1995 and 1996.  Of the 438 holes in
the data base, 387 holes containing 51,622 samples were used in the resource
estimate.  Mr. Ristorcelli reviewed available information necessary for the
preparation of the resource estimate, including sampling, analytical, drilling
and geologic.  Following a review of the available documentation pertaining to
the sampling programs, the data was deemed sufficiently accurate to use for
resource estimation.  However, Mr. Ristorcelli noted that some of the early
program's quality assurance and quality control procedures were poorly
documented and that an apparent bias may exist between some of the assay
values and the check assay values of the same samples.  As the original
samples were not preserved and cannot be reassayed, at Vista's request, Mr.
Ristorcelli has recommended a 12-15 hole drill program to confirm the validity
of the resource model that relied on those assays whose check assay bias is
unresolved.  Mr. Ristorcelli undertook multiple checks to assess the validity
of the model and classified the resource into Measured, Indicated and Inferred
categories to be in compliance with the NI 43-101 requirement of following
"CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines,"
issued in 2000 and modified with adoption of the "CIM Definition Standards -
For Mineral Resources and Mineral Reserves" in 2005.
    The estimated resources reported at a cut-off grade of 0.4 grams gold per
tonne are summarized in the following table.

    
     Paredones Amarillos Measured and Indicated Mineral Resource Estimate
    


    
     Resource      Metric    Average Gold            Average Gold   Contained
    Classification Tonnes       Grade    Short Tons     Grade      Gold Ounces
                   (x1000)   (grams/tonne) (x1000)   (ounces/ton)    (x1000)
    

    
     Measured
      (1, 2)        9,390          1.10    10,351        0.032           332
     Indicated
      (1, 2)       61,216          0.91    67,478        0.026         1,787
    Measured &
     Indicated     70,606          0.93    77,829        0.027         2,119
      (1, 2)
    
    (1)  Cautionary Note to Investors concerning estimates of Measured and
Indicated Resources: This table uses the terms "measured resources" and
"indicated resources". We advise U.S. investors that while these terms are
recognized and required by Canadian regulations, the U.S. Securities and
Exchange Commission does not recognize them. U.S. investors are cautioned not
to assume that any part or all of mineral deposits in these categories will
ever be converted into reserves.
    (2)  Measured and Indicated Resources include material subsequently
converted to Proven and Probable Reserves.


    
            Paredones Amarillos Inferred Mineral Resource Estimate
    

    
     Resource      Metric    Average Gold            Average Gold   Contained
    Classification Tonnes       Grade    Short Tons    Grade       Gold Ounces
                   (x1000)   (grams/tonne) (x1000)   (ounces/ton)    (x1000)
    

    
     Inferred (3)  7,694          0.64     8,481        0.019           158
    
    (3)  Cautionary Note to Investors concerning estimates of Inferred
Resources: This table uses the term "inferred resources". We advise U.S.
investors that while this term is recognized and required by Canadian
regulations, the U.S. Securities and Exchange Commission does not recognize
it. "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 all or any part of an inferred mineral resource will
ever be upgraded to a higher category. Under Canadian rules, estimates of
inferred mineral resources may not form the basis of a feasibility study or
prefeasibility studies, except in rare cases. U.S. investors are cautioned not
to assume that any part or all of an inferred resource exists or is
economically or legally minable.
    Silver occurs in the deposit, but due to the lack of quality assurance
and quality control data for the silver assays a NI 43-101 compliant resource
estimate has not been prepared.  Metallurgical testing indicates that silver
recoveries are variable, but silver production is not included in the Study.
It cannot be assumed that any silver will be produced from the project.
    The mineral reserve estimates prepared and reported by Mine Development
Associates, under the supervision of Mr. Dyer, at a gold price of $700 per
ounce of gold and cut-off grade of 0.4 grams gold per tonne are summarized in
the following table.


    
            Paredones Amarillos Proven & Probable Reserve Estimate
    


    
     Resource      Metric      Average                Average      Contained
    Classification Tonnes       Grade    Short Tons    Grade       Gold Ounces
                   (x1000)   (grams/tonne) (x1000)   (ounces/ton)    (x1000)
    

    
    Proven (4)      7,147          1.17     7,878        0.034           268
     Probable
        (4)        30,801          1.06    33,952        0.031         1,047
     Proven &
     Probable      37,948          1.08    41,830        0.031         1,315
    
    (4)  Cautionary Note to U.S. Investors concerning estimates of Proven and
Probable Reserves: The estimates of mineral reserves shown in this table have
been prepared in accordance with NI 43-101.  The definitions of proven and
probable reserves used in NI 43-101 differ from the definitions in U.S.
Securities and Exchange Commission Industry Guide 7.  Accordingly, the
Company's disclosure of mineral reserves herein may not be comparable to
information from U.S. companies subject to the reporting and disclosure
requirements of the U.S. Securities and Exchange Commission.
    
    Mining
    
    Vista plans to extract ore from the mine using conventional open pit
mining equipment and techniques.  A 91-tonne truck and loader fleet has been
selected and ordered with first deliveries expected in June 2009.  The Company
will be the owner and operator of the fleet and has entered into preliminary
agreements for a maintenance and repair contract for the major mining
equipment.  The higher-grade west lobe would be mined first and a significant
portion of the waste rock from the east lobe would be used to backfill the
west lobe of the pit.  Concurrent reclamation of two waste dumps would be
completed during the latter years of the operation.
    
    Processing
    
    Vista intends to process the ore in a conventional crushing and grinding
circuit consisting of a primary gyratory crusher followed by a semi-autogenous
grinding mill and two ball mills with an expected mill ore throughput rate of
11,000 tonnes per day.  The crushing and grinding equipment was previously
acquired by Vista from the Colomac Mine and is presently in Edmonton, Canada,
waiting shipment to Arizona for repairs and reconditioning.  As previously
reported, the cost of this equipment was approximately US$16 million, with
funds provided from the Company's private placement of convertible notes,
completed in March 2008, for aggregate proceeds of approximately US$30
million.  The proposed flow sheet indicates that following grinding, the
slurried ore will be sized by cyclones and then leached in tanks prior to gold
recovery using a Kemix carbon-in-pulp circuit.  Gold will be stripped from the
carbon and precipitated in an electrowinning cell prior to refining into dore
bars.  The tailings will be detoxified using ferrous sulfate, paste thickened
and deposited in a lined tailings impoundment facility on-site.
    
    Water, Power, Fuel and Access
    
    Due to the scarcity of surface water and political sensitivities
regarding the use of groundwater, the Company has elected to construct and
operate a desalination plant on the Pacific Coast.  Water would be pumped
approximately 45 kilometers to the site.  Annual water consumption is
estimated to be 1.4 million cubic meters.
    The Company expects that energy for the project will be supplied by the
Comision Federal de Electricidad from an existing sub-station located
approximately 18 kilometers north of the project.
    It is anticipated that diesel fuel for the project will be provided in
bulk quantities by Petroleos de Mexico.  Fuel prices in Mexico are subsidized
and have not experienced the volatility seen in other locations.
    The project site is currently accessible by government-maintained dirt
roads from the north and the west.  The main access will be from the north.
The Company plans to widen and improve approximately 10 kilometers of existing
roads and to construct approximately 8 kilometers of new road immediately
north of the project.
    
    Socio-economic Considerations
    
    The project is remotely located and is not expected to directly affect
any local inhabitants.  The access road improvements will benefit the villages
of Valle Perdido and El Rosario.  The Company is currently working with the
local education and health care authorities and has become a "social partner"
with the elementary school in El Rosario.  The Company is unaware of any
social issues related to the development of the project.
    
    Permits
    
    The Paredones Amarillos gold Project is located in a special use area
within the buffer zone of the Sierra Laguna Biosphere Reserve.  The special
use area forms the northern limit of the buffer zone and has unimpeded access
from the north.  As previously reported, earlier in 2008 Vista announced that
it had received correspondence from the local La Paz office of the Mexican
Environmental and Natural Resource Service ("SEMARNAT") which indicates that
staff in that office are of the opinion that the Change of Land Use Permit
approved by SEMARNAT in 1997 in relation to the Paredones Amarillos gold
Project is no longer valid.  This permit is necessary for the development of
the project to proceed.  Vista's advisors and counsel in Mexico have advised
Vista that they believe that the permit remains valid.  However, Vista's legal
counsel in Mexico has advised Vista that a new Change of Land Use Permit
application would be the most expeditious way to obtain the necessary
approvals.  Since the last permitting up-date provided by the Company (as set
out in its press release dated July 2, 2008), the Company has been involved in
a steady dialogue with the government officials in BCS and in Mexico City.  On
August 6, 2008 the Company filed a request for a Temporary Occupation Permit
for the use of the federal ground in the project area for the life of the
project.  This request is presently in the review process and management hopes
to receive this permit at the end of this year.  The Company and its advisors
are currently engaged in a series of discussions with SEMARNAT and the Mexican
National Commission for Natural Protected Areas regarding the documentation
required for the Change of Land Use Permit application, which will be
submitted as soon as the agreement is reached in regard to the required
accompanying documentation.  Based on earlier discussions with the Secretary
of SEMARNAT and as previously reported, Vista's management expects the
application to be processed promptly and by law within 60 working days after
its filing; in accordance with those terms established in the applicable legal
provisions.  Vista expects that matters relating to the Change of Land Use
Permit will be resolved shortly.  Additional information is contained in the
Company's press releases dated April 30, May 8, and May 21, 2008.
    
    Economic Analysis
    
    The economic analysis has been completed using a gold price profile with
a gold price of US$850 per ounce in the first three years of production,
decreasing to US$725 per ounce for the remainder.  This is considered to be
the base case.  The analysis has also been completed using a fixed price with
alternative sensitivity analyses completed at gold prices of US$700, US$800
and US$900 per ounce.  The economic analyses were conducted on 100% equity
basis with no consideration of debt or leasing.  Estimated before and after-
tax economic results, showing the internal rate of return (IRR) and net
present value at a 5% discount rate (NPV5%), cumulative cash flow and
sensitivity of the base case to changes in gold prices are presented in the
following tables.

    
                        Before - Tax Economic Results
    


    
                                                                  Before Tax
                                                               Cumulative Cash
                              Before Tax       Before Tax            Flow
       Gold Price Scenario       IRR (%)      NPV5%  (US$ 000's)   (US$ 000's)
    Base Case Gold Price
     Profile                     21.0 %         $128,890            $217,890
    Fixed $700 Gold Price        12.2 %          $59,888            $132,509
    Fixed $800 Gold Price        21.4 %         $149,033            $232,745
    Fixed $900 Gold Price        29.7 %         $238,179            $372,980
    


    
                          After-Tax Economic Results
    

    
                                                                  After Tax
                                                               Cumulative Cash
                             After Tax         After Tax              Flow
       Gold Price Scenario    IRR (%)        NPV5%  (US$ 000's)    (US$ 000's)
    Base Case Gold Price
     Profile                     16.6 %          $82,902            $152,500
    Fixed $700 Gold Price         9.3 %          $32,010             $90,862
    Fixed $800 Gold Price        17.1 %          $97,272            $177,818
    Fixed $900 Gold Price        24.2 %         $162,030            $264,497
    Schedule
    
    Vista plans to utilize outside sources to provide the additional capital
required for the project capital costs and will be proceeding to examine
various project financing alternatives, including debt and equity components.
Vista expects to complete financing arrangements by the end of the year with
the goal that construction will commence before the end of the first quarter
of 2009.  As noted above, the Company has already purchased the major mill
equipment with funds raised in the Company's March 2008 private placement of
convertible notes and placed orders for the major mining equipment, over the
next few months Vista intends to identify the remaining long delivery items
for order.  In addition, during the same period Vista intends to retain
project engineers to prepare a detailed design of the project and to examine
alternative construction management and project execution arrangements.
    
    About Vista Gold Corp.
    
    Since 2001, Vista has acquired a number of gold projects with the
expectation that higher gold prices would significantly increase their value.
For more information about our projects, including technical studies and
resource estimates, please visit our website at www.vistagold.com.  Vista is
undertaking programs to advance the Paredones Amarillos Project, including the
completion of the definitive feasibility study with initial results reported
in this press release as well as the purchase of long delivery equipment
items. The results of a preliminary assessment completed in 2007 on the Mt.
Todd Project in Australia were encouraging and additional technical studies
are underway with the preparation of a definitive feasibility study planned
for completion by mid-2009. Vista's other holdings include the Guadalupe de
los Reyes Project in Mexico, Yellow Pine Project in Idaho, Awak Mas Project in
Indonesia, and the Long Valley Project in California.
    This press release contains forward-looking statements within the meaning
of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934
and forward-looking information within the meaning of applicable Canadian
securities laws.  All statements, other than statements of historical facts,
included in this press release that address activities, events or developments
that Vista expects or anticipates will or may occur in the future, including
reserve and resource estimates for the Paredones Amarillos Project;
anticipated scheduling and production estimates and duration of production, as
well as estimated capital and other costs, estimates of operating and other
costs if mining is commenced at Paredones Amarillos; anticipated strip ratio
and recovery rates at Paredones Amarillos; availability and timing of capital
for project financing and other funds required for completion of construction
and commencement of mining operations at Paredones Amarillos; anticipated cash
flows, estimates of internal rates of return and net present value, if mining
operations are commenced at Paredones Amarillos; plans for extraction and
processing of ore and availability of water, energy and fuel required for such
mining operations if commenced, including plans to construct and operate a
desalination plant for provision of water; projected fuel prices; expectations
regarding socio-economic impact of construction and operation of mining
facilities at Paredones Amarillos; the timing and receipt of required land
use, environmental and other permits for the Paredones Amarillos Project and
timing for starting and completion of drilling and testing programs at the
Paredones Amarillos Project; plans to confirm the validity of the Change of
Land Use Permit for the Paredones Amarillos Project and timing for
confirmation of the status of this permit; timing for completion of
application process for new Change of Land Use Permit for the Project and
outcome of this application process; timing and outcome for application for
Temporary Occupation Permit for mining activities at the Paredones Amarillos
Project; plans to purchase remaining surface land required by the Project;
progress, scheduling and the performance and results of feasibility studies
including the recently completed definitive feasibility study for the
Paredones Amarillos Project; potential funding requirements and sources of
capital; anticipated timing of commencement of construction and commencement
of production at the Paredones Amarillos Project; contemplated development
scenarios for the Paredones Amarillos Project; preliminary assessment results
and plans for a feasibility study at the Mt. Todd Project; Vista's future
business strategy, competitive strengths, goals, operations, plans, potential
project development, future share price and valuation, future gold prices,
Vista's potential status as a producer, and other such matters are forward-
looking statements.  When used in this press release, the words "estimate",
"plan", "anticipate", "expect", "intend", "believe" and similar expressions
are intended to identify forward-looking statements.  These statements involve
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Vista to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements.  Such factors include, among
others, risks relating to delays and incurrence of additional costs in
connection with the feasibility study at our Paredones Amarillos Project,
including uncertainty relating to timing and receipt for required governmental
permits; uncertainty relating to timing and receipt for confirmation of the
validity of the Change of Land Use Permit for the Paredones Amarillos Project,
uncertainty relating to timing and outcome of application process for new
Change of Land Use Permit for the Project; uncertainty relating to timing and
outcome for application for Temporary Occupation Permit for mining activities
at the Project; uncertainty relating to completion of agreement for purchase
of remaining surface land required by the Project; uncertainty of feasibility
study results and preliminary assessments and of estimates on which such
results are based; risks relating to delays in commencement and completion of
construction at the Paredones Amarillos Project and Mt. Todd Project; risks of
significant cost increases; risks of shortages of equipment or supplies; risks
that Vista's acquisition, exploration and property advancement efforts will
not be successful; risks relating to fluctuations in the price of gold; the
inherently hazardous nature of mining-related activities; uncertainties
concerning reserve and resource estimates; potential effects on Vista's
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 of being
able to raise capital on favorable terms or at all; and external risks
relating to the economy and credit markets in general; as well as those
factors discussed in Vista's latest Annual Report on Form 10-K, Quarterly
Report on Form 10-Q and other documents filed with the U.S. Securities and
Exchange Commission and Canadian securities commissions.  Although Vista has
attempted to identify important factors that could cause actual results to
differ materially from those described in forward-looking statements, there
may be other factors that cause results not to be as anticipated, estimated or
intended.  There can be no assurance that such statements will prove to be
accurate as actual results and future events could differ materially from
those anticipated in such statements.  Except as required by law, Vista
assumes no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
    For further information, please contact Connie Martinez at (720)
981-1185, or visit the Vista Gold Corp. website at www.vistagold.com




For further information:

For further information: Connie Martinez of Vista Gold Corp.,
+1-720-981-1185/ First Call Analyst: Web Site: http://www.vistagold.com


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