DENVER–(BUSINESS THREAD)–Vista Gold Corp. (NYSE American and TSX: VGZ ) (“Vista” or the “Company”) today announced its unaudited financial results for the quarter ended June 30, 2022, highlighted by a cash position of 11.1 millions of dollars. All dollar amounts in this press release are in US dollars.
Highlights of the second quarter
Advancing the process with CIBC Capital Markets (“CIBC”) to seek a partner or other form of transaction to maximize shareholder value; Favorable results have been announced upon successful completion of the exploration drilling program at the Company’s 100% owned Mt Todd gold project (“Mt Todd” or the “Project”); and ended June 30, 2022 with a cash position of $11.1 million.
Frederick H. Earnest, Chairman and Chief Executive Officer of Vista, commented: “During the quarter, our primary focus continued to be the advancement of our work with CIBC to seek a partner or other form of transaction to achieve greater recognition of value to Mt Todd. . We also announced comprehensive results from our Mt Todd exploration drilling program which was completed earlier this year and ended the quarter with a cash position of 11.1 million dollars. The completion of the exploration program and management’s continued efforts to control costs resulted in a significant reduction in expenses this quarter.”
In June 2022, Vista announced the completion of the exploration drilling program at Mt Todd. The program consisted of 26 holes totaling 8,887 meters, which consistently intersected the mineralization predicted by the company’s geological model and demonstrated both horizontal and vertical continuity of the target structures. The program successfully identified four quality exploration targets with a combined potential to add 1.8 to 3.5 million ounces of gold to our resource base. Several other early-stage potential targets have also been identified along a 5.4 km portion of the 24 km Batman-Driffield trend. The work is conceptual in nature and was not intended to generate additional mineral resources or mineral reserves. See news release of June 13, 2022.
Prospects for the exploration target were derived from similarities to the Batman reservoir vein system and its surrounding mineralization, as evidenced by drill intercepts in the area of the exploration target at through vertical and long cross-sections and are based on estimated volumes and grades. The volume of the modeled areas determines the potential tonnage statement at the exploration target. The grade range indicated on the exploration target is determined by taking into account the results of drilling within the modeled exploration target area and taking into account the geological setting in an established mining camp. The potential tonnages and grades are conceptual in nature and are based on previous drilling results that defined the approximate length, thickness, depth and grade of the portion of the historical resource estimate. There has not been sufficient exploration to define a current Mineral Resource and the Company cautions that there is uncertainty as to whether further exploration will result in these exploration targets being delineated as a Mineral Resource.
The North Upper Crossload (“NXLD”) and South Crossload (“SXLD”) intercepts represent the high-grade zone within the Batman-Driffield structural corridor and, as these structures have yet to ‘target or systematically explore, represent excellent opportunities for the discovery of near-surface, high-grade mineralization. Structures parallel to the NXLD / SXLD are most likely to host high-grade near-surface mineralization within the Mt Todd package.
John Rozelle, Senior Vice President of Vista, a “qualified person” as defined in Canadian National Instrument 43-101 Disclosure Rules for Mineral Projects, has verified the data underlying the information contained and approved this press release.
Summary of financial results for the second quarter of 2022
As of June 30, 2022, cash, cash equivalents and short-term treasury investments totaled $11.1 million and working capital was $10.5 million. The company has no debt.
Vista reported a net loss of $1.4 million, or $0.01 per basic share, for the three months ended June 30, 2022, compared with a loss of $0.8 million, or $0.01 dollars per basic share for the three-month period ended June 30, 2021. The loss for the current quarter reflects lower spending following the completion of the drilling program at the end of March 2022 and was in line with the management’s expectations.
Management’s quarterly conference call to review financial results for the quarter ended June 30, 2022 and to discuss corporate and project activities is scheduled for Thursday, July 28, 2022 at 10:00 a.m. MDT (12:00 p.m. pm EDT).
Toll Free for Participants: (888) 396-8049
International Participant: (416) 764-8646
Conference ID: 67505400
This call will also be archived and available at www.vistagold.com after July 28, 2022. Audio playback will be available for 14 days by calling toll-free in North America (877) 674-7070 or (416) 764-8692. Password for playback is 505400#.
If you are unable to access the audio or phone on the day of the conference, please email your questions to email@example.com.
For more information, please contact Pamela Solly, Vice President of Investor Relations, at (720) 981-1185.
About Vista Gold Corp.
Vista is a gold project developer. The company’s flagship asset is the Mt Todd gold project located in the Tier 1, mining-friendly jurisdiction of the Northern Territory, Australia. Located approximately 250 km south-east of Darwin, Mt Todd is one of Australia’s largest and most advanced undeveloped gold projects and, as currently designed, Mt Todd is expected to be a top five producer of gold from Australia. All important environmental and operating permits have already been approved.
This press release contains forward-looking statements within the meaning of the US Securities Act of 1933, as amended, and the US Securities Exchange Act of 1934, as amended, and forward-looking information within the meaning of the laws of canadian values All statements, other than statements of historical fact, included in this press release that address activities, events or developments that we expect or anticipate will occur or may occur in the future, including things such as our objective of seeking a partner or another transaction to achieve it. greater recognition of values for Mt Todd; the expected date of our management’s call on our financial results; our belief that the Mt Todd exploration drilling program was successful and that results were favorable; our belief that the Mt Todd exploration drilling program successfully identified four quality exploration targets with a combined resource growth potential of 1.8 to 3.5 million ounces of gold and other potential structures along a 5.4 kilometer portion of the 24 kilometer Batman-Driffield trend; our belief that the results of the Mt Todd exploration drilling program did not result in additional mineral resources or mineral reserves; our belief that the upper NXLD / SXLD intercepts represent excellent opportunities for the discovery of near-surface, high-grade mineralization; our belief that structures parallel to the NXLD / SXLD are more likely to host high-grade near-surface mineralization within the Mt Todd package; and our belief that Mt Todd is Australia’s largest undeveloped gold project and, as currently designed, Mt Todd is expected to be one of Australia’s top five gold producers, are statements and prospective information. Material factors and assumptions used in developing the forward-looking statements and forward-looking information contained in this press release include the following: our forecasts and expected cash flows; our anticipated capital and operating costs; our expectations regarding mining and metallurgical recoveries; mine life and production rates; that laws or regulations affecting mine development or mining activities will remain consistent; our approved business plans, our resource and mineral reserve estimates and the results of preliminary economic evaluations; preliminary feasibility studies and feasibility studies of our projects, if any; our experience with regulators; our experience and knowledge of the Australian mining industry and our expectations regarding economic conditions and the price of gold. When used in this press release, the words “optimistic,” “potential,” “indicate,” “expect,” “attempt,” “expect,” “believe,” “may,” “will,” “if “, “anticipate” and similar expressions are intended to identify forward-looking statements and forward-looking information. These statements involve known and unknown risks, uncertainties and other factors that could cause the Company’s actual results, performance or achievements to be materially different. of future results, performance or achievements expressed or implied by such statements. These factors include, but are not limited to, the uncertainty of resource and reserve estimates, the uncertainty of the Company’s future operating costs and ability to raise capital; risks related to increased capital costs and operating costs; risks of shortages and fluctuating costs of equipment or supplies; risks related to fluctuations in the price of gold; the nature inherently dangerous activities related to mining; potential effects on our operations of environmental regulations in the countries where we operate; risks due to legal proceedings; risks related to political and economic instability in certain countries where it operates; uncertainty regarding the results of bulk metallurgical test work; uncertainty regarding the completion of critical milestones for Mount Todd; and uncertainty about the impact of the ongoing global health crisis caused by the COVID-19 pandemic; as well as the factors discussed under the headings “Note on Forward-Looking Statements” and “Risk Factors” in the company’s latest Annual Report on Form 10-K filed in February 2022 and other documents filed with the Securities and Exchange Commission of US and Canadian Securities Regulatory Authorities. Although we have attempted to identify important factors that could cause actual results to differ materially from those described in the forward-looking statements and forward-looking information, there may be other factors that cause results to differ from those anticipated, estimated or anticipated. Except as required by law, we undertake no obligation to publicly update any forward-looking statements or information; whether as a result of new information, future events or otherwise.