Vista Gold Corp. Announces Board Approval for Preparation of a Pre-Feasibility Study on its Mt. Todd Gold Project



    DENVER, June 23 /CNW/ -- Vista Gold Corp. ("Vista") (TSX & NYSE Amex
Equities: VGZ) is pleased to announce that following a review of the results
of the recently completed Preliminary Economic Assessment ("PEA"), the Board 
has approved the expenditure of funds for the preparation of a Preliminary
Feasibility Study ("PFS") on its Mt. Todd gold project. Vista has awarded a
contract to Tetra Tech Inc. of Golden, Colorado, to manage and prepare the PFS
in accordance with Canadian National Instrument 43-101-Standards of Disclosure
for Mineral Projects ("NI 43-101"). The contract for the process and
infrastructure engineering portion of the PFS has been awarded to Ausenco
Limited of Queensland, Australia.  In addition, Resource Development inc. of
Denver, Colorado, will continue to supervise metallurgical testing and act as
metallurgical consultant.

    The PFS will be based on the base case scenario presented in the PEA,
except that in accordance with NI 43-101, the PFS will not include inferred
resources.  The base case final pit, using a break-even gold price of US$600
per ounce was estimated to contain 147.6 million tonnes of measured and
indicated resources(1) with an average grade of 0.90 grams gold per tonne,
containing 4.25 million ounces of gold.  The goal of the PFS is to refine and
optimize these estimates to determine the potential economics of the proposed
operation. The PEA reported an estimated mine life of 15.2 years with total
estimated gold production of 3.7 million ounces resulting in estimated pre-tax
net cash flow of US$646.7 million at a US$750 per ounce gold price.  At the
same gold price the pre-tax NPV8 (net present value with an 8% discount rate)
was estimated to be US$232.9 million and the internal rate of return was
estimated to be 21.6%.  Pre-production capital was estimated to be US$323.1
million.  Cash operating costs were estimated to be US$453 per ounce.  The PEA
is preliminary in nature and includes inferred mineral resources, see
Cautionary Notes 2 and 3.

    Fred Earnest, President and COO of Vista, stated, "It was a logical
decision to spend the approximate US$1 million to complete the PFS, which
management believes will enable it to confirm the economic and technical
feasibility of the Mt. Todd gold project. If the economics in the PEA are
confirmed by the PFS, then we expect that most of the measured and indicated
resources(1) estimated in the base case pit, as reported in the PEA, will be
able to be reclassified as proven and probable reserves(4).  The PEA reflects
the results of two years of work that has more than doubled the estimated gold
resources at our Mt. Todd gold project and has resolved satisfactorily what
Vista believes are the most important processing concerns left over from
previous operations. While the PEA used a gold price of US$750 per ounce
(three-year trailing average), the sensitivity analysis indicates an internal
rate of return of 37.7% at US$950 per ounce gold price and a pre-tax NPV8 of
US$601.7 million. The preparation of the PFS and the potential estimation of
proven and probable reserves(4) is only the first step. We believe the Mt.
Todd property has the potential to host a larger gold resource."

    Vista is currently developing plans to undertake development drilling in
the Batman Pit area to convert inferred resources(2) to indicated resources or
measured resources(1) and to undertake exploration drilling on the mining and
exploration licenses at Mt. Todd.

    The PEA was prepared under the direction of Mr. John Rozelle, an
independent qualified person under NI 43-101.  The results of the PEA are
outlined in a NI 43-101 technical report entitled "Mt. Todd Gold Project
Updated Preliminary Economic Assessment Report, Northern Territory, Australia"
and is dated June 11, 2009.  The PEA is available on SEDAR at www.sedar.com.
    

    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. In addition to
the Mt. Todd gold project discussed above, Vista has undertaken programs to
advance the Paredones Amarillos gold project, located in Baja California Sur,
Mexico, including a definitive feasibility study, the purchase of long
delivery equipment items, and the purchase of land for the processing
facilities, related infrastructure and the desalination plant. Vista's other
holdings include the Guadalupe de los Reyes gold project in Mexico, Yellow
Pine gold project in Idaho, Awak Mas gold project in Indonesia, and the Long
Valley gold project in California.

    1)  Cautionary Note to U.S. Investors concerning estimates of Measured
and Indicated Resources: This press release uses the terms "measured
resources", "indicated resources" and "measured & indicated resources." We
advise U.S. investors that while these terms are defined in and required by
Canadian regulations, these terms are not defined terms under the U.S.
Securities and Exchange Commission ("SEC") Industry Guide 7 and are normally
not permitted to be used in reports and registration statements filed with the
SEC. The SEC normally only permits issuers to report mineralization that does
not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage
and grade without reference to unit measures.  The term "contained gold
ounces" used in this press release is not permitted under the rules of the
SEC.  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)  Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources: This press release uses the term "inferred resources". We advise
U.S. investors that while this term is defined in and required by Canadian
regulations, this term is not a defined term under SEC Industry Guide 7 and is
normally not permitted to be used in reports and registration statements filed
with the SEC. "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. The SEC
normally only permits issuers to report mineralization that does not
constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and
grade without reference to unit measures.  The term "contained gold ounces"
used in this press release is not permitted under the rules of the SEC.  U.S.
investors are cautioned not to assume that any part or all of an inferred
resource exists or is economically or legally minable.

    3)  Cautionary Note concerning economic analysis that include Inferred
Resources:  Mineral resources that are not mineral reserves do not have
demonstrated economic viability. This PEA is preliminary in nature and it
includes inferred resources that are considered too speculative geologically
to have the economic considerations applied to them that would enable them to
be categorized as mineral reserves, and there is no certainty that the PEA
will be realized.

    4)  Cautionary Note to U.S. Investors concerning estimates of Reserves:
This press release uses the term "mineral reserve".  We advise U.S. investors
that while this term is defined in and required by Canadian regulations, such
definitions differ from the definitions in the SEC Industry Guide.  Under SEC
Industry Guide 7 standards, a "final" or "bankable" feasibility study is
required to report reserves, the three-year historical average price is used
in any reserve or cash flow analysis to designate reserves and the primary
environmental analysis or report must be filed with the appropriate
governmental authority.

    This press release contains forward-looking statements within the meaning
of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange
Act of 1934, as amended, 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 the economic analysis, estimates of mineral
resources, the conversion of mineral resources to mineral reserves, life of
mine estimates, the potential for gold resources in the Batman deposit and
other targets within the Mt. Todd gold project, the preparation of the PFS,
future gold prices, the satisfactory resolution of processing concerns at Mt.
Todd, favorable effects of Mt. Todd project economics, the estimated operating
and capital costs and the cash flow analysis and sensitivity analysis in the
PEA, and other such matters are forward-looking statements and forward-looking
information.  When used in this press release, the words "optimistic",
"potential", "indicate", "expect", "intend", "hopes," "believe," "may,"
"will," "if, "anticipate" 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,
uncertainty of resource estimates, estimates of results based on such resource
estimates; risks relating to completing metallurgical testing; risks relating
to cost increases for capital and operating costs; risks relating to delays at
the Mt. Todd Project; risks related to the ability to obtain the necessary
permits, risks of shortages and fluctuating costs of equipment or supplies;
risks relating to fluctuations in the price of gold; the inherently hazardous
nature of mining-related activities; 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 under
the headings "Uncertainty of Forward-Looking Statements" and "Risk Factors" in
Vista's latest Annual Report on Form 10-K as filed on March 13, 2009, as
amended April 16, 2009, and Quarterly Report on Form 10-Q, as filed May 6,
2009, 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 and
forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended.  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.

    Without limiting the foregoing, this press release uses terms that comply
with reporting standards in Canada and certain estimates are made in
accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian
Securities Administrators that establishes standards for all public
disclosures an issuer makes of scientific and technical information concerning
mineral projects.  All mineral resource estimates contained in this press
release, including the terms "measured mineral resources," "indicated mineral
resources" and "inferred mineral resources", have been prepared in accordance
with NI 43-101, and these standards differ significantly from the requirements
of the SEC.  The resource information contained in this press release is not
comparable to similar information disclosed by U.S. companies.  See the
Cautionary Notes to U.S. Investors above.

    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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