PERTH (miningweekly.com) – The Northern Territory government has extended its agreement with junior Vista Gold for the management of the Mt Todd gold mine.
The mine, which ceased operations in 2000, is estimated to contain some 7.4-million ounces of gold.
Resources Minister Ken Vowles said on Wednesday that the territory government and Vista both wanted to see the Mt Todd mine returning to operation, in the interests of regional development, creating local jobs and managing environmental issues.
“The extended agreement maintains Vista Gold’s role as manager of the site, and acknowledges its commitment to future development,” Vowels said.
He added that the renewal recognised the cooperative relationship between the government and Vista Gold to manage environmental conditions at the site.
“It is beneficial to have an operator on site to manage mine water and other environmental impacts. If there was no operator the Northern Territory government would have to take on the expense of managing the site,” Vowles said.
Since Vista Gold took responsibility for the site in 2007, both the company and the government have invested significant resources into managing water on the site, the Minister pointed out.
“Vista Gold has also completed a full environmental-impact assessment of the former mine, with the aim of moving into development when optimal industry conditions are reached.
“In the longer term, reopening the mine will ensure rehabilitation of the site after the mine ceases operation.”
The Northern Territory Government renewed the agreement in 2011 and again by Deed of Variation in 2014, extending it until December 2018.
Vista Gold sought an early renewal of the agreement by another Deed of Variation until the end of December 2023, which has been approved.