LATIN AMERICA — NEWS ROUNDUP — Scale of Amayapampa reduced

Low gold prices have prompted Vista Gold (VGZ-T) to scale down mining plans at the Amayapampa gold project in Bolivia.

The company completed a feasibility study for a 3,000-tonne-per-day operation in the summer of 1997, then applied for construction and environmental permits later that year. But in late 1997, after receiving approval to proceed, Vista reduced its mining plans to 1,500 tonnes per day. With gold prices still at record lows, the company has submitted a request to modify the permit again, “to reflect a smaller project.” Amayapampa has reserves of 8.9 million tonnes grading 1.84 grams gold per tonne.

At the nearby Capa Circa project, Vista is proposing to develop an underground mine capable of producing 100 tonnes per day grading 8 grams gold. This higher-grade ore would be processed at the Amayapampa mill, thereby enhancing the overall economics of the combined project.

Based on preliminary estimates, the combined project could produce an average of 37,000 oz. gold at a cash cost of about US$150 per oz. Capital costs would be about US$22 million. Studies are under way to confirm these estimates in order to arrange the necessary financing.