DENVER / Jan 11, 2023 / Business Wire / Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the “Company”) provided an update on their plan for 2023. The company finished a feasibility study for their Mt Todd gold project in 2022, concluded a drilling program to demonstrate district-scale resource growth potential, and retained CIBC Capital Markets as a strategic advisor to support the company’s strategic outreach process for Mt Todd. The strategic process with CIBC Capital Markets, which is ongoing and remains a top priority, continues to generate interest and positive feedback on the technical merits of Mt Todd. Despite positive signs of improvement in market conditions, interested parties continue to maintain a cautious approach to new, large-scale development projects.
In light of this sentiment, the Company is evaluating a smaller scale project with significantly lower initial capital costs while maintaining similar operating costs as demonstrated by the 2022 feasibility study, and with potential for subsequent throughput expansion or mine-life extension. The company aims to demonstrate these alternate development strategies early in 2023, with the belief that this will attract the interest of new potential partners and appeal to those who have previously expressed interest in the optionality of Mt Todd under different development strategies.
Reducing costs and maximizing cost-effectiveness are also a high priority for the company in 2023. Their 2022 recurring costs were 15% below plan, and they have already taken steps to further reduce these costs by approximately 7% during 2023, and continue to evaluate and implement opportunities for additional cost reductions.
Mr. Earnest also highlighted the company’s commitment to preserving the tremendous value of Mt Todd and to the health and safety of their employees and the environment. The company continues to work closely with the Jawoyn people and other stakeholders in the Katherine region and the Northern Territory. They share the vision of the Northern Territory Government that mining is an important part of the economic growth of the Northern Territory, and continue to work with the Northern Territory Government on initiatives of mutual interest.
In conclusion, Vista’s 2023 objectives build on the successful work completed during 2022. The Company will continue to prioritize its goals of maximizing cost-effectiveness, improving efficiency, enhancing the long-term value of Mt Todd, and seeking a partner or other form of transaction for Mt Todd to maximize shareholder value.
