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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 January 19, 1999 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: January 19, 1999 By: /s/ Roger L. Smith
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Roger L. Smith
Vice President of Finance
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EXHIBIT INDEX
Exhibit Description of Exhibit
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99.1 Press Release dated January 19, 1999, stating the Company
announced Hycroft 1998 Production
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Trading Symbol: VGZ
Toronto and American Stock Exchanges
VISTA ANNOUNCES HYCROFT 1998 PRODUCTION
DENVER, COLORADO, JANUARY 19, 1999 - Vista Gold Corp. ("Vista") is pleased to
announce that during 1998, the Hycroft mine produced 112,700 ounces of gold and
236,000 ounces of silver. As anticipated, mining activities were reduced and
subsequently suspended in December 1998 as a result of persistently low gold
prices. The Hycroft operation had excellent results for 1998 including two
record quarters of over 35,000 ounces each. Production of gold will continue in
1999 and 2000 from ore stockpiled on the heaps during previous years. Gold
production for 1999 is forecast to be approximately 25,000 ounces. The Company
will continue to maintain the plant and facilities in stand-by condition and
during 1999 will investigate the potential for additional or higher grade oxide
ore which will permit an early restart of the operation. In December, Vista
received an offer of $2.2 million for four of the eight remaining 150-ton haul
trucks at Hycroft. In light of the continuing low gold prices, the Company
decided to accept the offer.
At the newly acquired Mineral Ridge mine, the mining operation has been
restarted and the processing plant is now undergoing start-up and commissioning.
The plant commissioning activities include a number of significant modifications
which were identified prior to the acquisition. In addition, a critical ore
feeding arrangement, which was identified as inadequate during start-up, will be
replaced during the month of January. As a result of the feeder replacement, the
three-month start-up schedule has been extended by approximately one month. This
is not expected to have a significant effect on 1999's planned production of
approximately 55,000 ounces. Other areas of the operation, especially in the
mine, have met or exceeded Vista's expectations. In December, the Company
started a drilling program designed to add gold reserves to the project. These
were generally short holes (less than 200 feet deep) to extend or confirm
mineralization in areas where no information exists. Assay results from 19 holes
have been received to date, and 13 holes have encountered economic
mineralization above the cut-off grade. Following evaluation of these results,
drilling will continue on the 50- to 60-hole program.
In Bolivia, the Company's activities have focussed on arranging financing for
the construction and development of the Amayapampa/Capa Circa project. The
Company has been in discussions with various lenders and has recently received
an indicative term sheet for a project loan of $15 million out of the $23
million required for the development. The lender's cash flow estimate is based
on a spot gold price of $295 per ounce. The Company is holding discussions with
multi-lateral lenders to arrange for a substantial portion of the remainder of
the required development capital to be in the form of subordinated debt. Vista's
goal is to commence construction of the project as soon as financing is
arranged. The construction period would last one year, and the project is
expected to produce 40,000 ounces of gold per year (5-year average) at a cash
cost of approximately $150 per ounce.
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The Company is well positioned to endure the current low gold prices and to
advance its three principal projects. At year-end, the Company had $6.0 million
in cash and refined bullion available for sale. Production from Hycroft and
Mineral Ridge is expected to be 80,000 ounces in 1999. At Mineral Ridge, 100,000
ounces of gold are sold forward in 1999 at an average price of $330 per ounce.
These forwards will be used or rolled forward into later years depending on gold
price and production leaching during 1999. At current prices, and prior to any
equity investment required for the Amayapampa project, the Company expects that
its cash position at the end of 1999 should be similar to its position at the
end of 1998. The Company continues to pursue opportunities for growth and to
increase shareholder value. This includes exploration around the existing
minesites, and a search for additional acquisition opportunities where the
Company can use its operating and development expertise.
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The statements that are not historical facts 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 20-F as amended.
For further information, please contact Investor Relations at (303) 629-2450.
