NEVADA AND THE WESTERN STATES — Vista postpones Hycroft suspension

Vista Gold (VGZ-T) has postponed the planned suspension of mining activities at its Hycroft open-pit, heap-leach gold mine near Winnemucca, in northwestern Nevada.

Vista, which announced last January that mining would cease this May, says operations will now continue until August, and possibly beyond.

Higher-than-anticipated gold grades, increased ore throughput and improved operating costs in the first quarter were the dominant factors in the company’s decision.

Hycroft cranked out 35,017 oz. gold in the three months ended March 31, nearly 5,000 oz. more than was produced in the corresponding period of 1997.

Cash costs between the periods dropped

to US$207 per oz. from US$273

per oz., a reflection of the higher

output combined with cost-

controlling measures.

For 1998, production at Hycroft is expected to top 105,000 oz. gold, of which 90,000 oz. have been sold forward at US$292 per oz. The heap-leaching period will be extended through 1999 and into 2000, though what amount will be produced is not yet known.

For the three months ended March 31, Vista earned US$2.18 million on revenue of US$11 million, compared with a loss of US$691,000 on US$10.7 million in the corresponding period of 1997.

A large portion of the company’s income came from the liquidation of an earlier hedging position that had covered 200,000 oz. gold. The sale generated US$9.2 million in net proceeds, of which US$4.8 million has been deferred to later reporting periods. A portion of the proceeds was used to pay down US$13 million in project debt at Hycroft.

At last report, the Hycroft mine hosted reserves of 22.9 million tonnes grading 0.69 gram gold.