Resource World Magazine

A U G U S T / S E P T E M B E R 2 0 1 9 www.resourceworld.com 59 Australian Update by Greg Barns Vista Gold developing Mt Todd gold project, Australia VISTA GOLD CORP. [VGZ-TSX, NYSE American) looks to have made a smart deci- sion in developing the Mount Todd gold project in Australia's Northern Territory. The NT, as it is known, is mineral-rich but not nearly as crowded in terms of mining and exploration as its neighbours, Western Australia, Queensland and South Australia. The Mt Todd Project contains "more than 7.8 million ounces gold resources (measured and indicated categories) with significant deposit and district exploration expansion potential," the company said. It is only 250 km from the NT's capital city Darwin which has a sizable port. And, as Vista Gold notes, the project has "sig - nificant existing infrastructure, including paved access from the major transportation corridor, a natural gas pipeline to site for future power generation, medium-tension power lines for present power needs, a fresh water reservoir, tailings impound - ment facility, and readily available labour and technical personnel." Breaking down Mount Todd's resources, in the proven and probable category of reserves it has 221,041 tonnes at 0.82 g/t gold for about 5.8 million ounces. In the measured and indicated categories, as noted above, it measures 297,391 tonnes at 0.82 g/t gold for 7.8 million ounces. Vista Gold acquired the Mount Todd Project in 2006 and has spent over US $100 million in advancing the project. This has included substantial environmental work, over 50,000 metres of core drilling to triple the resource, and mine design. A 2018 Preliminary Feasibility Study puts the project in bottom 20% category in Australia for cost of mining. The PFS estimates average annual production of 479,000 ounces in years 1 to 5, at an aver - age AISC (all in sustaining costs) of US $678/oz, giving an after-tax IRR of 20.5% and an after-tax NPV of US $679 mil- lion. The PFS estimates a mine life of 13 years based on the proven and probable reserves. The mine is expected to pay back the initial capital outlay of US $839 million in just over three years. The Mount Todd Project is in the final stages of approval with environmental and mining permits at the federal and territory government levels either approved or close to being approved. A strong 10-year com - munity engagement plan, particularly with the Indigenous population of the area, has also been successful. In a significant announcement at the end of May this year, Vista Gold said that initial leach test results from ongoing metallurgical test work at Mt Todd gold showed recoveries substantially higher than was estimated in the PFS. While the PFS reported average gold recoveries of 86.4% this work shows recoveries of 92.7% and the company said this provides the potential to recover approximately 300,000 more ounces of gold over the life of the project. When it comes to expanding the mining potential and resources replacement, Vista Gold says it has a "prospective, under- explored land package" of 1,100 km 2 at the Mount Todd Project, so there is plenty of upside to develop the current proj- ect further and to replace reserves and resources. In a recent presentation (July 2019), the company identifies three targets for exploration. The Quigleys deposit has the potential to supplement the Mt Todd plant in years 6-8; the Wandie deposit is a pos - sible high-grade, underground project, and the Golden Eye deposit, which the company describes as "intrusive related sheeted vein" mineralization similar to its current mineable deposits. Mount Todd is the largest undeveloped gold project in Australia but over the next 12 -18 months that will likely expand even more with Vista Gold having strong share - holder support, money in the bank and a seasoned team in the NT and at the head office in Denver Colorado. n WE PROMISE AND WE DELIVER GOLD PROJECTS FOR INITIAL PUBLIC OFFERING Fayz Yacoub P. Geo. Professional Geologist Tel: (604) 831-0424 Email: fayz@ontrackexploration.com www.ontrackexploration.com

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