LATIN AMERICA — Vista allows locals to mine gold in Bolivia

Mine at your own risk.

That was the message sent by Vista Gold (VGZ-X) in September after the company permitted local miners to enter the Capa Circa mine in Bolivia to process tailings and mine surface showings. The move was designed to give mine workers the chance to earn extra cash after low gold prices forced Vista to reduce their hours at the Amayapampa operation, 10 km away.

“We kept them on the payroll as long as we could, but the gold price forced us to conserve our resources,” says Vista President Michael Richings.

The deal, forged by the company, the Ministry of Labour and Mining, and the miners themselves, prohibits the miners from entering the underground portion of the mine and exempts the company from liability that could arise from environmental damage or worker injury.

Before gold rebounded, Vista was about to lay off 264 miners at that operation and the Amayapampa mine.

Now that gold is hovering around the US$300 mark, Vista says it will attempt to secure US$26 million to build an open pit at the Amayapampa operation. The financing would translate into jobs, says Richings.

“If we can secure the financing, we can start development of the property and put everyone back to work.”