Vista Gold acquired its Paredones Amarillos Project in Baja California Sur, Mexico, for $2.1 million. Now, with an estimated 2 million ounce gold resource and an updated positive pre-feasibility study, the Company is aggressively moving the project to production.
       Vista plans to complete a definitive feasibility study on Paredones Amarillos later this year. The study is expected to confirm preliminary feasibility study findings that the project is economical at gold prices substantially lower than current levels. The Company’s consultants have informed Vista that previously issued permits are still valid and only need updating. Vista also has recently purchased $16 million in gold processing equipment so that mill construction could begin during the second half of 2008. Major equipment items delivered to the lay-down yard in Edmonton include: gyratory crusher, SAG mill, ball mills, and pebble crusher.
       The equipment is ready for re-conditioning, which is scheduled to occur during the next six months, says Fred Earnest, Vista President and COO. Based on projected average production of 117,000 ounces of gold per year, capital cost estimates for the project were updated in February 2008 at $169 million with an average cash cost of $419 an ounce. These costs may change as Vista completes and analyzes definitive studies reflecting various scope changes including an increase in estimated gold production to the range of 130,000 to 150,000 ounces of gold per year.
       Back when gold was at $650 an ounce, based on a base-case production of 113,000 ounces per year, the Company projected a 24% pre-tax ROI. Gold prices are much higher now and if that trend continues, Vista’s future return could be substantially higher.
       The Company further intensified its focus on Mexico when it recently consolidated its land position by agreeing to acquire properties adjacent to its Guadalupe de los Reyes Project in Sinaloa. Vista plans to conduct a comprehensive exploration and development program with the goal of expanding the project’s resource base. Such a result would enhance the likelihood of a positive production decision. Current consolidated resource estimates for the property include an estimated indicated resource of 484,600 ounces of gold and 8.3 million ounces of silver, plus an inferred resource of 315,850 ounces of gold and 9.4 million ounces of silver.
       Exploration of the consolidated property will be staged to include data compilation, mapping, sampling, and geophysical surveys; identification of potential extensions of known mineralization and structural zones to target for new mineralization areas; and definition drilling of prioritized areas.

       Since Vista acquired its Mt. Todd Project in Australia’s Northern Territory, it has completed initial studies with results indicating a substantial gold resource – 1.8 million ounces measured and indicated, as well as 1.5 million ounces inferred – and believes that the project has tremendous exploration potential.
       A 2006 preliminary assessment projected a 10-year mine life with an annual production of 266,000 ounces of gold and 4.3 million pounds of copper from a 30,000 tpd milling operation. It is estimated the project will require a $264 million capital investment to bring it to production. At a $600 per ounce gold price, the study estimates a 17% pre-tax internal rate of return, at an impressive $178 million net cash flow.
       Understandably, Vista is fast-tracking the Mt. Todd Project to a production decision. The positive preliminary assessment will be followed up with additional technical studies and metallurgical testing. An updated resource estimate, announced in February 2008, increased measured and indicated resources by 65% to 2.9 million ounces of gold at Mt. Todd. The updated resource estimate reflects the success of the 2007 drilling program, Earnest said. A definitive feasibility study is expected to be completed by mid-2009.

       Development of two such projects as the Paredones Amarillos Project in Mexico and the potentially larger Mt. Todd Project in Australia would be enough to keep any company busy for years to come. Vista is fortunate to own other potential production projects waiting their turn for development.
       A recent preliminary assessment evaluated the potential economics of Vista’s Long Valley Project in California as an open-pit, heap-leach mine that could produce an estimated 535,300 ounces of gold over an eight-year mine life.
       Total project capital cost is estimated at $61.8 million. Operating costs are estimated at $6.64 per ton of heap-leach material mined and processed which equates to a cost of $415 per recovered ounce of gold. The project could be economically viable at gold prices of $550 per ounce and above.
       “We are encouraged by the results, especially considering that we acquired the Long Valley Project in 2003 for $750,000 and a 1% net smelter royalty,” says Richings.
       The Yellow Pine Project in Idaho has an estimated 2.2 million ounce measured and indicated gold resource plus 0.8 million ounces of inferred gold resource. A 2006 preliminary economic assessment estimated a 10-year mine life and a 190,000 ounce annual production rate could produce a pre-tax ROI of 19% at a gold price of $630 per ounce and an initial capital investment of $150 million.
       Drilling at Vista’s Awak Mas Gold Project in Indonesia has confirmed the property’s exploration potential. A feasibility study is planned over the next two years.

       Vista’s management has firmly and steadily moved the Company toward its new goal of becoming a producer. Executive Chairman and CEO Michael Richings has over 35 years development and operations experience in the mining industry. Previously, he served as President of both Atlas Corp. and Lac South America. Vista President and COO Frederick Earnest has over 20 years mining sector experience. Prior to joining Vista in 2006, he served as President of Pacific Rim El Salvador. Recently joining the Vista development team are Ken Deter as Vice President, Engineering and Metallurgy, and Carlos Calderon as Vice President, Project Development, both of whom have extensive experience in the mining industry.
       The spin-off of the Company’s Nevada portfolio has better enabled Vista shareholders to participate more directly in growing investor interest in Nevada, one of the world’s most mineral-rich regions. It also allows Vista management to focus its attention on its large Mexican and Australian properties which the Company is planning to bring to production by late 2010 or early 2011.
       The Company is well-positioned to enter the ranks of gold producers – it has $27 million in cash and a glittering portfolio of properties that could potentially be advanced to production – and convert its gold resources from spreadsheet numbers to real revenues. With multiple production-track projects, 10.3 million ounces of gold (measured and indicated), and an additional 3.9 million ounces inferred – and a seven-year-long bull market in gold, there can be little doubt of Vista Gold’s potential to achieve substantial returns for investors.

     Disclaimer: Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Resources: This document uses the terms “measured and indicated resources” and “inferred resources.” We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in the measured and indicated categories will ever be converted into reserves. Inferred resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or other economic study. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally mineable.
     Forward-Looking Statements – This article contains forward-looking statements within the meaning of the U.S. and Canadian securities laws. These are statements other than those of historical fact that address matters Vista expects or anticipates will or may occur in the future including but not limited to resource estimates, Vista’s potential status as a producer, anticipated production schedules and costs, results of preliminary assessments and feasibility studies, gold prices and Vista’s financing plans. Forward-looking statements involve risks that may cause actual performance or results to differ from those implied in such statements. Examples of risks include uncertainties of results of preliminary assessments and feasibility studies and estimates on which such results are based; uncertainties of reserve and resource estimates, risks relating to fluctuations in the price of gold, risks of shortages of equipment or supplies; and uncertainty of being able to raise capital on favorable terms or at all, 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 SEC and Canadian regulators. See also “Special Note Regarding Forward-Looking Statements” elsewhere in this publication.