PERTH (miningweekly.com) – US-based Vista Gold Corporation is reviewing its options for its Mount Todd gold project, in Australia's Northern Territory.
President and CEO Frederick Earnest said in a statement this week that given the current condition of the equity markets, and the company’s share price, Vista believed it was in the best interest of shareholders to evaluate ways to reduce the company’s exposure to Mount Todd’s spending requirements, while unlocking the project’s value.
“The company will advise the market if, and when, the board approves a definitive transaction of strategic option, if any, depending on the outcome of the strategic review,” Earnest said.
He noted, however, that with 5.9-million ounces of proven and probable reserve, the Mount Todd project was large, and highly leveraged to the gold price.
“We are in the final stages of completing environmental permitting and have finished engineering and environmental analysis supporting both permitting and the project’s prefeasibility study,” Earnest added.
Vista has adopted a two-stage development strategy for Mount Todd and plans to initially construct a 30 000 t/d plant. The company then intends to expand the project to 45 000 t/d and lower the cutoff grade to take full advantage of the project’s growing resource base.