Vista Gold(US:VGZ)2025-02-28 21:21Mineral Reserves and Production - Estimated proven and probable mineral reserves of 6.98 million ounces of gold, with an average grade of 0.77 g Au/t, based on a gold price of $1,500 per ounce[177] - Average annual production expected to be 395,000 ounces of gold over a 16-year life of mine, with 479,000 ounces during the first seven years[177] - Life of mine average cash costs projected at $913 per ounce, including $845 per ounce during the first seven years[177] - Total mined ore for the Mt Todd Gold Project reached 267,021 kt, with a contained gold of 6,979 kozs and an overall recovery rate of 91.6%[198] - Proven and probable mineral reserves are estimated at 280,375 kt, containing 6,979 kozs of gold, with an average grade of 0.77 g Au/t[201] - The total estimated recovered gold from the mine plan is projected to be 6.31 million ounces[202] - The life of mine production schedule anticipates processing 280.4 million tonnes of ore to recover 6.31 million ounces of gold[191] Economic Analysis - Initial capital requirements estimated at $1.03 billion, assuming an owner-operated mining fleet and third-party power generation[177] - After-tax NPV5% of $1.13 billion and IRR of 20.4% at a gold price of $1,800 per ounce[177] - The economic analysis for the project is based on a gold price of US$1,500 per ounce, with a cutoff grade of 0.35 g Au/t for mineral reserves[203] Mining Operations and Infrastructure - The existing tailings storage facility at Mt Todd has a capacity for approximately 80 million tonnes of additional material[215] - A fresh water storage reservoir is planned to meet year-round operational requirements for a 50,000 tonnes per day operation[215] - The project site is located less than 10 kilometers from the Stuart Highway, facilitating transportation and logistics[215] - Katherine, located 56 kilometers from the project site, offers necessary support functions typical of a medium-sized city[213] - The operational MMP was approved in June 2021 and transitioned to a Deemed Mining License in July 2024, outlining the mine operating strategy[211] Agreements and Royalties - The company modified its agreement with the Jawoyn Association, establishing a gross proceeds royalty range of 1.125% to 3.0%[189] - In December 2023, the company entered into a royalty agreement granting Wheaton Precious Metals a 1% royalty on gross revenue from mineral sales[190] - The company has a private agreement with the Jawoyn Association for access to the land, which is not classified as indigenous lands[210] Exploration and Drilling - Vista has drilled a total of 96 HQ diamond drill holes totaling 52,424 meters since acquiring the Batman deposit[245] - The mineral resource estimate for the Quigleys deposit has been defined by 632 drill holes, with a significant portion of historical drilling being reverse circulation[243] - The 2020-2022 exploration drilling program included 26 drill holes totaling 8,887 meters, confirming mineralization continuity and identifying four quality exploration targets along a 5.4 km section of the Batman-Driffield Trend[259] - The 2024 drilling program comprised 34 drill holes totaling 6,776 meters, successfully intersecting mineralization within the Batman deposit resource shell[260] - The Batman Deposit drilling history includes a total of 826 holes with 8,239 meters of percussion drilling, 75,059 meters of diamond drilling, and 67,260 meters of RC drilling[249] Environmental and Regulatory Compliance - The environmental impact statement (EIS) was approved in September 2014, allowing the project to proceed with 28 recommendations to be addressed[310] - The mine plan has been developed in consultation with the Jawoyn Association, avoiding areas of aboriginal significance[316] - The company obtained a waste discharge license from the NT Government, allowing the release of treated water from the Mt Todd site during the wet season, adhering to an 80% protection limit environmental standard[317] Assay and Data Integrity - A comprehensive audit of 12,365 assays revealed that 95% matched the source documents, indicating high data integrity[273] - The majority of assay differences were minimal, with over 99% falling within the range of -0.1 ppm Au to +0.1 ppm Au, below the economic cutoff grade[275] - Significant discrepancies were found in two assays: one reported 0.005 ppm Au instead of 0.8 ppm Au, and another reported 1.08 ppm Au instead of 0.01 ppm Au[279] Processing and Recovery - Gold recovery rates from the proposed processing method are estimated to be 91.6% on a weighted-average basis, net of solution losses[302] - The existing heap leach pad contains nearly 13.4 million tonnes of material, with an average grade of 0.54 g Au/t based on a 3D resource model[306] - The proposed comminution circuit is designed to process 50,000 tpd, incorporating HPGR technology to enhance efficiency and reduce energy requirements[297] - The company has completed a total of 71 leach tests, confirming leach recoveries of 91.9%, net of solution losses[303] Future Plans and Expenditures - A drilling program completed in 2024 totaled 6,776 meters, focusing on the north end of the Batman deposit and adjacent SXL, with plans for a 2025 FS to increase mineral reserve grade to approximately 1 gram gold per tonne[319] - The initial capex for the 2025 FS is anticipated to be approximately $400 million, with expected average annual gold production ranging from 150,000 to 200,000 ounces from 5.2 million tpa ore throughput[319] - The company plans to incur expenditures of approximately $2,400 for maintenance and environmental stewardship at the Mt Todd site, plus $3,200 for work plans related to the 2025 FS and equipment purchases[320]