DENVER, July 2 /PRNewswire-FirstCall/ -- Vista Gold Corp. ("Vista")
(TSX: VGZ; Amex: VGZ) reports on the status of the Change of Land Use
Permit for the Paredones Amarillos Project in Baja California Sur ("BCS"),
Mexico (as described in Vista's press releases dated April 30, May 8, and
May 21, 2008) and the expected development timetable for the project.
Vista has taken steps to preserve its right to proceed with a judicial
appeal of the opinion issued by the BCS office of Secretariat of
Environment and Natural Resources (SEMARNAT) and has also completed a
number of prerequisite steps to submitting an application for a new Change
of Land Use Permit. Changes in the law governing the Change of Land Use
Permit require Vista to demonstrate that it has the right to use the
surface affected by the permit. Vista has recently received a certificate
from the General Direction of Mines of the General Coordinator of Mines in
the Ministry of Economy verifying that Vista's Mexican subsidiary, Minera
Paredones Amarillos S.A. de C.V. ("MPA"), is the rightful holder of valid
mineral rights for the Paredones Amarillos Project. Vista has also recently
received an official appraisal of the surface land in the project area from
the National Institute for the Appraisal and Administration of National
Property (INDAABIN) confirming that the surface overlying a significant
part of these mineral rights (including the proposed pit and most of the
dumps) is federal land. Under Mexican mining statutes, MPA has the
constitutional right to use the surface for mining activities, subject to
applicable environmental permits and federal authorizations. This position
has been further confirmed in the foregoing certificate issued by the
General Direction of Mines of the General Coordinator of Mines in the
Ministry of Economy. One of the mechanisms for authorizing the use of
federal land for mining activities is a Temporary Occupation Permit
(lasting the life of the mining activity). Vista is preparing an
application for a Temporary Occupation Permit and plans to submit the
application shortly. Vista has signed an agreement with a private landowner
for the purchase of the remaining surface land required by the project.
This land covers the area of the mill site, tailing impoundment and various
ancillary facilities. The documents supporting Vista's right to use the
surface, together with the existing and valid environmental permit and
other supporting documents currently being prepared, will form the basis of
the new Change of Land Use Permit application. Vista plans to submit this
application within the next few weeks. Based on earlier discussions with
the Secretary of SEMARNAT (see Vista press release dated May 21, 2008),
Vista's management expects the application to be processed promptly and by
law within 60 working days after its filing; the foregoing in accordance
with those terms established in the applicable legal provisions.
Vista expects to complete the definitive feasibility study for the
Paredones Amarillos Project by mid-August and will commence activities to
arrange financing shortly afterwards. Based on a preliminary schedule and
assuming favorable results from the definitive feasibility study, the
successful completion of project financing, and the issuance of a new
Change of Land Use Permit, construction of the Paredones Amarillos Project
is expected to commence before the end of 2008, with first gold production
planned to commence before the end of 2009. A detailed project schedule is
currently under preparation and will be made public as part of the
feasibility study results.
Fred Earnest, President and COO, commented, "While there is always
uncertainty over timing associated with these processes, Vista management
and our advisors are confident in our legal right to develop the Paredones
Amarillos Project. We look forward to commencing construction on this new
Mexican gold mine."
About Vista Gold Corp.
Since 2001, Vista has acquired a number of gold projects with the
expectation that higher gold prices would significantly increase their
value. For more information about our projects, including technical studies
and resource estimates, please visit our website at
http://www.vistagold.com. Vista is undertaking programs to advance the
Paredones Amarillos Project, including the preparation of a definitive
feasibility study and the purchase of long delivery equipment items, so
that construction can begin during the last quarter of 2008. The results of
a preliminary assessment completed in 2007 on the Mt. Todd Project in
Australia were encouraging and additional technical studies are underway
with a definitive feasibility study planned for completion by mid-2009.
Vista's other holdings include the Guadalupe de los Reyes Project in
Mexico, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, and
the Long Valley Project in California.
This press release contains forward-looking statements within the
meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act
of 1934 and forward-looking information within the meaning of applicable
Canadian securities laws. All statements, other than statements of
historical facts, included in this press release that address activities,
events or developments that Vista expects or anticipates will or may occur
in the future, including such things the timing and receipt of required
land use, environmental and other permits for the Paredones Amarillos
Project and timing for starting and completion of drilling and testing
programs at the Paredones Amarillos Project; plans to confirm the validity
of the Change of Land Use Permit for the Paredones Amarillos Project and
timing for confirmation of the status of this permit; timing for completion
of application process for new Change of Land Use Permit for the Project
and outcome of this application process; timing and outcome for application
for Temporary Occupation Permit for mining activities at the Paredones
Amarillos Project; plans to purchase remaining surface land required by the
Project; progress, scheduling and the performance and results of
feasibility studies including the ongoing definitive feasibility study for
the Paredones Amarillos Project; potential funding requirements and sources
of capital; anticipated timing of commencement of construction and
commencement of production at the Paredones Amarillos Project; contemplated
development scenarios for the Paredones Amarillos Project; preliminary
assessment results and plans for a feasibility study at the Mt. Todd
Project; Vista's future business strategy, competitive strengths, goals,
operations, plans, potential project development, future share price and
valuation, future gold prices, Vista's potential status as a producer, and
other such matters are forward-looking statements. When used in this press
release, the words "estimate", "plan", "anticipate", "expect", "intend",
"believe" and similar expressions are intended to identify forward-looking
statements. These statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of Vista to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, risks relating to delays
and incurrence of additional costs in connection with the feasibility study
underway at our Paredones Amarillos Project, including uncertainty relating
to timing and receipt for required governmental permits; uncertainty
relating to timing and receipt for confirmation of the validity of the
Change of Land Use Permit for the Paredones Amarillos Project, uncertainty
relating to timing and outcome of application process for new Change of
Land Use Permit for the Project; uncertainty relating to timing and outcome
for application for Temporary Occupation Permit for mining activities at
the Project; uncertainty relating to completion of agreement for purchase
of remaining surface land required by the Project; uncertainty of
feasibility study results and preliminary assessments and of estimates on
which such results are based; risks relating to delays in commencement and
completion of construction at the Paredones Amarillos Project and Mt. Todd
Project; risks of significant cost increases; risks of shortages of
equipment or supplies; risks that Vista's acquisition, exploration and
property advancement efforts will not be successful; risks relating to
fluctuations in the price of gold; the inherently hazardous nature of
mining-related activities; uncertainties concerning reserve and resource
estimates; potential effects on Vista's operations of environmental
regulations in the countries in which it operates; risks due to legal
proceedings; risks relating to political and economic instability in
certain countries in which it operates; uncertainty of being able to raise
capital on favorable terms or at all; and external risks relating to the
economy and credit markets in general; as well as those factors discussed
in Vista's latest Annual Report on Form 10-K, Quarterly Report on Form 10-Q
and other documents filed with the U.S. Securities and Exchange Commission
and Canadian securities commissions. Although Vista has attempted to
identify important factors that could cause actual results to differ
materially from those described in forward-looking statements, there may be
other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be
accurate as actual results and future events could differ materially from
those anticipated in such statements. Except as required by law, Vista
assumes no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
For further information, please contact Connie Martinez at (720)
981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com
SOURCE Vista Gold Corp.
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Related links:
http://www.vistagold.com
CONTACT:
Connie Martinez of Vista Gold Corp.,
+1-720-981-1185
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