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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the period of July 22, 1997 Commission File Number: 1-9025
VISTA GOLD CORP.
(Name of Registrant)
Suite 3000
370 Seventeenth Street
Denver, Colorado 80202
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the SEC
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate the file number assigned to the registrant in
connection with Rule 12g3-2(b): Not applicable.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
VISTA GOLD CORP.
Date: July 22, 1997 By: /s/ Karla J. Kimrey
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Karla J. Kimrey
Director of Investor Relations
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EXHIBIT INDEX
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Exhibit Description of Exhibit
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99.1 Vista Gold Corp. announces the completion of a positive feasibility study for
the Amayapampa project in Bolivia.
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EXHIBIT 99.1
POSITIVE FEASIBILITY STUDY COMPLETED ON BOLIVIAN PROJECT
DENVER, COLORADO, JULY 22, 1997 - Vista Gold Corp. is pleased to announce the
completion of a final feasibility study for the Amayapampa Project in Bolivia.
The major consultants assisting Vista Gold in the preparation of the report
were: Mine Reserves Associates, Inc., Denver, Colorado; H.A. Simons Ltd.,
Vancouver, British Columbia; TerraMatrix, Steamboat Springs, Colorado; and
Mineral Resource Development, Inc., Denver, Colorado.
The study concludes that an open pit mine with initial production of 73,000
ounces of gold per year at an estimated cash cost of US$122 per ounce can be
successfully developed at Amayapampa. The Company believes that gold prices in
the range of $340 to $350 per ounce, with some production sold forward, would
be sufficient for the project's cash flow to support project financing and
development could begin. The principal project parameters are:
# PROVEN AND PROBABLE GOLD RESERVES - estimated at 9.6 million tonnes (10.6
million tons) at 1.74 grams/tonne (0.051 oz/ton) containing 537,000 ounces
of gold, at a waste to ore ratio of 2.7:1, including allowances for
dilution and ore previously mined.
# GOLD PRODUCTION - projected to average 73,000 ounces/year in the first two
years and average 52,000 ounces/year for the following six years.
# CASH COST - estimated to average US$122 per oz for the first two years and
average US$184 for the following six years.
Vista has recently selected Banque Paribas to arrange and underwrite a limited
recourse project financing. The essential terms of the financing have been
negotiated and, subject to due diligence, agreed upon. Paribas has undertaken
to complete its due diligence by September 15, 1997.
The mine will be open pit and the processing plant will have a nominal capacity
of 3,300 tonnes/day (3,600 tons/day) and will use a gravity circuit followed by
flotation of the gravity tails with cyanide leaching of the flotation
concentrate. The project will cost US$53 million to build with an additional
US$14 million required for working capital, value added taxes (VAT) and duties.
VAT and duties are recoverable as tax credits during production.
The feasibility study relates only to the Amayapampa mine. The Capa Circa
mine, approximately 10 kilometers (6 miles) away, will be developed subsequent
to the Amayapampa with a potential production estimated at 18,000 ounces of
gold per year, which will be processed in the Amayapampa plant. Preliminary
metallurgical testing has already been completed and additional drilling and
development is underway to determine the ore reserves. This incremental,
higher grade gold production will have a very positive impact on the Amayapampa
project economics.
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The Amayapampa deposit is approximately 600 meters (2,000 ft) in strike length,
30 to 70 meters (100 to 230 ft) in width and has an average dip of 80 to 90
degrees. Exploration for additional reserves is planned on extensions of the
known deposit and adjacent targets, on trend, in similar geologic settings.
The project will be constructed over a twelve month period following five
months of engineering and financing activities. Subject to satisfactory
financing and improved gold prices, construction is anticipated to begin in
January 1998.
"We have completed a careful and detailed study of the technical and economic
feasibility of the Amayapampa project and are pleased with the results," said
Mike Richings, President and CEO of Vista Gold Corp. "There is significant
upside to this project with additional reserves of 100,000 oz at a US$400 gold
price, additional potential production from the Capa Circa mine and the
possibility for increased reserves from ore body extensions and identified
targets nearby."
Amayapampa will be Vista's second producing mine and will increase the
Company's production level to approximately 180,000 ounces in 1999. Vista's
Hycroft mine in Nevada is expected to produce 115,000 ounces of gold in 1997.
Production at Hycroft for the first six months of 1997 was 60,539 ounces at an
average direct cash cost of $240 per ounce.
Vista Gold Corp. is an international gold mining, development and exploration
company based in Denver, Colorado. Its holdings range from the Hycroft mine in
Nevada to development and exploration projects in North and South America
including Ecuador, Bolivia, Venezuela and Peru.
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The statements that are not historical are forward looking statements involving
known and unknown risks and uncertainties that could cause actual results to
vary materially from the targeted results. Such risks and uncertainties
include those described in the Company's Form 20F as amended.
For further information, please contact Karla J. Kimrey, Director of Investor
Relations, or Michael B. Richings, President and CEO of Vista Gold Corp. at
(303) 629-2450 or (888) 629-2450.
