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EXHIBIT 99.01
[LOGO OMITTED] THIRD QUARTER REPORT - 2000
DEAR FELLOW SHAREHOLDERS:
Once again in the third quarter of this year, gold prices have remained
depressed, despite the rising oil prices and unrest in the Middle East. As long
as the dollar remains strong against other major currencies it is unlikely that
gold will move out of its current trading range. The United States election
results may create a degree of uncertainty which could benefit gold, but the
company must continue to plan for its future based on current gold prices.
The Corporation has continued in its efforts to reduce operating costs and this,
together with the discontinuance of operation at Mineral Ridge has enabled the
Corporation to reduce its losses to $590,000 for the three months ending
September 30, 2000 compared to a net loss of $1.8 million in the same period in
1999. At the end of the quarter, the Corporation has net working capital of $1.4
million including cash of $0.64 million. Hycroft gold production during the
third quarter was 2,691 ounces and 11,830 ounces for the first nine months. We
expect production for the full year to reach 13,000 ounces.
The Corporation has re-examined restarting the run-of-mine heap leaching
operation at Hycroft at a higher production rate. This scenario would produce
350,000 ounces of gold over a five year period instead of the seven year period
first contemplated. The accelerated production rate substantially improves the
economics and shows that the project would have a cash cost of $183 an ounce
with an after tax internal rate of return of 31-percent at a $275 gold price.
Thirteen million dollars of capital expenditure and $5 million of working
capital would be required to restart operations at Hycroft. If the Corporation
can obtain financing, mining operations could restart immediately, as the
project is fully permitted, and infrastructure and key management are in place.
Recent pit-mapping and re-logging of drill samples in the Central Fault pit has
identified areas of oxide mineralization which can be extended to the southeast
with additional drilling. This supplements previously reported target areas
where additional drilling could add 400,000-450,000 ounces of oxide mineral
resources. A hypogene vein system has also been identified in the south end of
the Central Fault pit with a strike length in excess of 1,300 feet; with true
widths varying from 5 to 25 feet and grades averaging 0.15 ounces per ton.
Continuing compilation of geologic and drill hole data confirms that Hycroft is
a large epithermal gold system with multiple targets for high-grade
mineralization (greater than 0.1 ounce per ton gold). The mineralized horizon
now felt to be most permissive for high-grade exploration proximate to known
oxide mineralization has been penetrated by only six of the more than 3,000
exploration holes on the Hycroft property. Known mineralization at Hycroft
extends over a strike length of four miles along the Central Fault and more than
two miles along the east fault (sometimes call the "Brimstone Fault"). In
places, this horizon begins immediately below the floor of existing and planned
pits at Hycroft and generally begins less than 500 feet below the original
surface. Additional exploration drilling to further develop some of these
exciting targets will be undertaken when funding is available.
With respect to the USF&G Lawsuit announced in our press release of August 31,
2000, an Emergency Motion for Preliminary Injunction was filed by USF&G on
September 7, 2000 and this motion was denied by the court on October 16, 2000.
In his ruling, the judge stated that "A party cannot be obligated for the debt
of another absent an express agreement assuming such liability." As no such
agreement exists, the Corporation feels that this is a very positive step
towards concluding this suit.
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At the end of the quarter I took over as President and CEO for Mike Richings,
who has retired, but remains as an active member of the Board of Directors. The
Corporation's strategy continues unchanged, and that is to examine a number of
alternatives to assure the future of the company, including the sale of assets
and the pursuit of strategic alliances with other gold producers to enhance
shareholder value.
Vista Gold Corp. is an international gold mining, development and exploration
company based in Denver, Colorado. Its holdings include the Hycroft mine in
Nevada, a development project in Bolivia, and exploration projects in North and
South America.
Ronald J. (Jock) McGregor
President and Chief Executive Officer
November 8, 2000
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 10-K as amended.
For further information, please contact Investor Relations at (720) 981-1185 or
(888) 629-2450.
(720) 981-1185 - 7961 SHAFFER PARKWAY - SUITE 5 (720) 981-1186 -
VOICE - LITTLETON, CO 80127 FAX
