LATIN AMERICA — Vista to drill gold project in Venezuela

Vista Gold (VGZ-T) will begin drilling its Guariche gold property in Venezuela next month in an attempt to confirm proven and probable reserves.

The resource at the Triunfo 1 concession, within the 25-sq.-km property, stands at 9.3 million tons grading 0.06 oz. gold per ton.

The company plans to spend US$350,000 on 6,000 metres of drilling over the next five months. Vista acquired the property in June 1996 and only recently received drill permits from the Venezuelan government.

Vista considers Guariche to be an integral part of its growth strategy and will attempt to increase reserves there to 1.4 million contained ounces by the end of the year, and to 3 million contained ounces by 2000.

Preliminary studies indicate Vista could produce up to 100,000 oz. gold per year from the operation, though that figure has yet to be confirmed by a feasibility study.

Elsewhere, the company is drilling at the Iroco gold project in Bolivia.

Vista and joint-venture partner Altoro Resources, a private company, plan to drill seven holes. Initial returns have identified, at a depth of 480 ft., 186 ft. of 0.03 oz., including 56 ft. of 0.08 oz.

Vista currently operates the Hycroft gold mine in Nevada. The heap-leach operation turned out 89,381 oz. last year, compared with 101,128 oz. in 1995.