Vista Announces Paredones Amarillos Gold Project Feasibility Study Update Results and Provides Project Update



    


    
    DENVER, Sept. 2 /CNW/ -- Vista Gold Corp. ("Vista" or the "Company") (TSX
& NYSE Amex:   VGZ) is pleased to announce the results of a Feasibility Study
Update (the "Updated Study") completed by SRK Consulting ("SRK") of Lakewood,
Colorado, on the Company's wholly-owned Paredones Amarillos gold project
located in Baja California Sur, Mexico.

    During the past four months, Vista has undertaken a detailed review of
its Paredones Amarillos gold project.  The Roberts & Schaefer Company, a large
engineering and construction firm based in Salt Lake City, Utah, has reviewed
the process facility design to optimize the process area layout, confirmed the
proposed production parameters and constructability, and re-estimated the
capital and operating costs for the process area. The re-estimated capital and
operating costs were incorporated in the Updated Study of the project, which
supersedes the economic evaluation reported in the Company's September 8, 2008
press release, in connection with the feasibility study of the Paredones
Amarillos gold project (the "Feasibility Study") and the related technical
report entitled "Feasibility Study NI 43-101 Technical Report Vista Gold Corp.
Paredones Amarillos Gold Project Baja California Sur, Mexico" dated October
20, 2008.

    Other cost estimates for the proposed project were reviewed and updated
by SRK and incorporated into the Updated Study to reflect current estimated
capital and operating cost inputs and commodity prices.  The Updated Study
estimates a decrease in capital and operating costs and improved project
economics.  The mineral resources, mineral reserves, mine life and stripping
ratios reported in the Feasibility Study remain unchanged.  The highlights
from the Updated Study compared to the Feasibility Study results are shown in
the following table (all currency amounts are in U.S. Dollars):
    



    

    
    Selected Operating, Cost and Return Estimates
    -------------------------------------------------------------------------
    Life-of-Mine Gold
     Production                            1,203,000 ounces
    -------------------------------------------------------------------------
    Average Annual Gold                127,400 ounces per year
     Production            (142,900 ounces per year for the first five years)
    -------------------------------------------------------------------------
                         Feasibility Study              Updated Study
    -------------------------------------------------------------------------
    Pre-Production
     Capital Costs
    -------------------------------------------------------------------------
      Total               $197.2 million               $189.8 million
    -------------------------------------------------------------------------
      $per ounce gold
       produced                 $165                         $155
    -------------------------------------------------------------------------
    Cash Operating Costs
     ($per ounce gold
     produced)
    -------------------------------------------------------------------------
      Life-of-Mine Average      $419                         $406
    -------------------------------------------------------------------------
      Average for First Five
       Years                    $380                         $372
    -------------------------------------------------------------------------
    Financial Analysis
    -------------------------------------------------------------------------
      Average Gold Price    $771 per oz.(1)  $771 per oz.(1)  $950 per oz.(2)
    -------------------------------------------------------------------------
      Payback Period         3.4 years         2.9 years         2.3 years
    -------------------------------------------------------------------------
      NPV at 5% Discount
       Rate (pre-tax)     $128.9 million   $150.0 million   $303.9 million
    -------------------------------------------------------------------------
      Internal Rate of
       Return              21.0% pre-tax     24.7% pre-tax     37.8% pre-tax
                          16.6% after-tax   19.6% after-tax   31.0% after-tax
    -------------------------------------------------------------------------
    1) Feasibility Study Base Case Gold Price Profile ($850 for 1st 3 years,
       $725 thereafter)
    2) $950 gold price demonstrates upside at current gold prices
    =========================================================================

    
    The Updated Study was prepared by SRK.  Terry Braun, P.E., Principal of
SRK, an independent "Qualified Person" as defined by Canadian National
Instrument 43-101, supervised the preparation of scientific and technical
information contained in this press release.  The Company anticipates filing
the Updated Study on SEDAR and EDGAR within 10 days of this press release.

    On August 4, 2009, Vista announced that authorizations had been received
for a confirmatory drilling program at the Paredones Amarillos gold project. 
Drilling started on Friday, August 28, 2009, and Major Drilling de Mexico,
S.A. de C.V., under the direction of Vista's exploration team, has completed
the first of thirteen holes.  Additional metallurgical tests to be undertaken
on the new samples from this drilling program are expected to confirm the
process plant design criteria and provide additional validation of the mineral
reserve model.

    Fred Earnest, Vista's President and Chief Operating Officer, stated, "We
are very pleased with the results of the Feasibility Study Update for the
Paredones Amarillos gold project.  The project has been subjected to a
detailed and rigorous review of the design criteria and cost assumptions from
the Feasibility Study completed in 2008.  This effort supports our belief that
the project can be built and operated as expected, and we believe that the
project continues to represent an attractive investment for Vista as it
advances its plan to become a mid-tier gold producer."

    Vista's advisors continue to work with Mexican authorities to expedite
the approval of the Temporary Occupation Permit and the Change of Land Use
Permit for the Paredones Amarillos gold project.  Mr. Earnest commented, "The
review process continues to advance favourably and we anticipate the approval
process to reach a successful conclusion in the near future.  We have also
initiated a community engagement program in anticipation of receiving the
permits.  We expect this program to involve several different workshops and
meetings over the course of the next 3-4 months as we work with the local
communities and stakeholders to ensure the successful development of the
Paredones Amarillos gold project."
    

    About Vista Gold Corp.
    
    Since 2001, Vista has acquired a number of gold projects with the
expectation that higher gold prices would increase their value. For more
information about our projects, including technical studies and resource
estimates, please visit our website at www.vistagold.com. Vista has taken
steps to advance the Paredones Amarillos gold project located in Baja
California Sur, Mexico, towards production.  These steps include the
completion of a definitive feasibility study, the purchase of long-delivery
processing equipment, and the purchase of land for the processing facilities,
related infrastructure and the desalination plant. The results of a
preliminary economic assessment completed in 2009 on the Mt. Todd gold project
in Australia are encouraging and Vista is undertaking other studies to advance
the project, with the completion of a preliminary feasibility study targeted
for the fourth quarter of 2009.  Vista's other holdings include the Guadalupe
de los Reyes gold project in Mexico, the Yellow Pine gold project in Idaho,
the Awak Mas gold project in Indonesia, and the Long Valley gold project in
California.
    

    Forward-Looking Statements
    
    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 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 such things
as estimates of capital and operating costs, estimates of production and
life-of-mine, and estimates of financial payback period and internal rate of
return of the Paredones Amarillos gold project, financial and operating
results and estimates; potential funding requirements and sources of capital;
plans for budgeting financial recoveries; the timing, performance and results
of feasibility studies and economic evaluations including the timing and
receipt of required land use, environmental and other permits for the
Paredones Amarillos gold project and timing for starting and completion of
drilling and testing programs at the Paredones Amarillos gold project; the
timing and outcome of the application for the Temporary Occupation Permit
("TOP") and for the new Change of Land Use Permit ("CUSF") for the Paredones
Amarillos gold project and timing for confirmation of the status of such
permits; anticipated timing of commencement of construction and commencement
of production at the Paredones Amarillos gold project; preliminary assessment
results for the Mt. Todd gold project; and plans and timing for a preliminary
feasibility study at the Mt. Todd gold project; Vista's future business
strategy; goals; operations; plans; potential project development; future gold
prices; Vista's potential status as a producer including plans and timing of
potential production; and other such matters are forward-looking statements
and forward-looking information.  When used in this press release, the words
"estimate", "plan", "will", "target", "anticipate", "expect", "intend",
"believe" 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 Vista to be materially different from
any future results, performance or achievements expressed or implied by such
statements.  Such factors include, among others, risks relating to general
economic conditions, delays and incurrence of additional costs in connection
with our Paredones Amarillos gold project, including uncertainty relating to
timing and receipt for required governmental permits; uncertainty relating to
timing and outcome of the TOP and the new CUSF for the Paredones Amarillos
gold 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 and Mt. Todd gold projects; 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; risks related to repayment of debt; risks
related to increased leverage; and uncertainty of being able to raise capital
on favorable terms or at all; as well as those factors discussed in Vista's
latest Annual Report on Form 10-K, as amended and Quarterly Report on Form
10-Q and other documents filed with the U.S. Securities and Exchange
Commission and Canadian securities regulatory authorities.  Although Vista has
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.  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 or forward-looking information, whether as a result
of new information, future events or otherwise.

    All mineral reserves and resources have been estimated in accordance with
the definition standards on mineral resources and mineral reserves of the
Canadian Institute of Mining, Metallurgy and Petroleum referred to in National
Instrument 43-101, commonly referred to as NI 43-101. U.S. reporting
requirements for disclosure of mineral properties are governed by the United
States Securities and Exchange Commission (SEC) Industry Guide 7. Canadian and
Guide 7 standards are substantially different and the information contained in
this press release, the Updated Study and the Feasibility Study are not
comparable to similar information disclosed by U.S. companies. This press
release, the Updated Study and the Feasibility Study referenced in this press
release use the terms "measured," "indicated," and "inferred" resources. We
advise investors that while those terms are recognized and required by
Canadian regulations, the SEC does not recognize them. Inferred mineral
resources are considered too speculative geologically to have economic
considerations applied to them that enable them to be categorized as mineral
reserves. 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 feasibility
or pre-feasibility studies, except in rare cases. U.S. investors are cautioned
not to assume that part or all of an inferred resource exists, or is
economically or legally minable.  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.

    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 Web Site: http://www.vistagold.com


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