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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 April 1, 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: April 1, 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 April 1, 1999, stating the Company
announces 1998 results.
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Trading Symbol: VGZ
Toronto and American Stock Exchanges
______________________________________________________NEWS __________________
VISTA ANNOUNCES 1998 RESULTS
DENVER, COLORADO, APRIL 1, 1999 - Vista Gold is pleased to announce its results
for 1998. The Company experienced a loss of $1.6 million for the year compared
to a net loss in 1997 of $54.0 million. In the last quarter, the Company
expensed all holding costs for its Bolivian properties and all start-up costs
for its Mineral Ridge mine. Prior to the adjustments, the Company had earnings
of $1.6 million.
SUMMARY RESULTS
(U.S. DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31
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1998 1997 1996
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<S> <C> <C> <C>
Gold revenues $ 37,083 $ 40,123 $ 34,847
Net cash provided by (used in) operating activities 10,487 1,400 (3,359)
Net loss (1,640) (54,019) (11,826)
Loss per share (0.02) (0.61) (0.21)
</TABLE>
CONSOLIDATED PRODUCTION
(OUNCES)
<TABLE>
<S> <C> <C> <C>
Gold 112,838 117,378 89,381
Silver 235,784 479,920 321,315
</TABLE>
In 1998, the Hycroft mine produced 112,685 ounces of gold at a direct cash cost
of $222 per ounce and 235,636 ounces of silver. The low costs at Hycroft were a
result of the steps taken by the Company at the beginning of the year, which
included modifying the mine plan and liquidating its forward position in the
gold futures market. The Company was also able to completely retire the Hycroft
project debt of $13 million.
Mining operations were suspended at Hycroft in December as a result of low gold
prices, but the mine will continue to produce gold in 1999 and into 2000 from
ore stockpiled on the heap leach pads. The Company estimates that 1999
production will be approximately 25,000 ounces of gold. Production through
February was 11,147 ounces and is projected to be 16,000 ounces for the first
quarter of 1999. Vista Gold will continue to maintain the operations on a
standby basis and undertake reclamation in areas that will not be disturbed
should operations restart.
A reconciliation of Brimstone ore reserves mined showed that 30 percent more
gold was mined than projected from the mineable reserves estimated from
exploration results prior to mining. The Board of Directors have approved a
$400,000 exploration program, to be completed by September 1999, which includes
approximately 6,000 feet (1,829 meters) of diamond drilling and 11,000 feet
(3,350 meters) of angle reverse circulation drilling to determine if this
upgrading applies to the remaining Brimstone gold
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resources. A positive result from this study could add significantly to Vista
Gold's mineable reserves and allow the Hycroft mine to resume production at a
gold price of $300 per ounce. Preliminary estimates made by the Company indicate
production at Hycroft could be resumed at a rate of 50,000 to 70,000 ounces per
year for a minimum of 5 years, at an estimated cash cost of $220 to $250 per
ounce of gold.
In late October 1998, the Company acquired the Mineral Ridge mine located near
Silver Peak, Nevada. The project was constructed by Cornucopia Resources Ltd.
for a cost in excess of $17 million, but had failed to meet commercial
production loan tests and had been shut down in December 1997. The Company
completed an in-depth technical review and undertook a number of modifications
to eliminate the problems experienced by Cornucopia. Start-up commenced in early
November and, by the end of February 1999, the plant was producing gold at the
rate of 100 ounces per day. The first quarter production is projected to be
3,500 ounces. The start-up period, which lasted approximately four months, took
slightly longer than expected, but the operation is expected to be at planned
capacity commencing with the second quarter 1999.
At year-end, the Mineral Ridge mine had proven and probable reserves of
approximately 4 million tons at a grade of 0.06 ounces per ton, containing
241,000 ounces of gold. The Company estimates that the 1999 average cash
production costs will be approximately $226 per ounce and production will be
between 40,000 and 45,000 ounces in 1999.
In Bolivia, on the Amayapampa project, the Company recently completed studies on
a revised development plan, which evaluated the economics of combining the
underground Capa Circa mine with the nearby open-pit Amayapampa project. The
studies, which were completed in February 1999, showed a significant enhancement
over previous studies and demonstrated the economic viability of the project at
a gold price of $300 per ounce.
The revised project is projected to have an average production rate over the
first five years of 50,100 ounces per year and an increased proven and probable
reserve at Amayapampa of 548,000 ounces. In addition, Capa Circa hosts a
resource of 46,000 ounces of gold. The estimated cash production costs of the
project will be $157 per ounce of gold and the initial capital cost will be
approximately $26 million. The project also shows improved economics with a
projected after-tax internal rate of return of over 17 percent at a $300 gold
price. Vista is focussing its efforts on arranging the financing for this
project so that construction can begin during the third quarter of 1999.
To summarize, the Company has repositioned itself to continue to be an
economic producer of gold with prices at $300 per ounce or below. At
year-end, the Company's working capital was $12.7 million excluding debt (the
combined $15.6 million Mineral Ridge debt is not guaranteed by the Company).
The Company's plans to operate the Mineral Ridge mine and explore the Hycroft
Brimstone ore reserve are expected to be achieved using its existing and
projected financial resources. In Bolivia, at the Amayapampa project, the
Company will pursue all appropriate avenues of financing for this expected
low-cost development project.
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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.
