With a capital infusion of US$11.9 million,
A run-of-mine, heap-leach operation could produce 350,000 oz. from the Brimstone deposit over the next seven years at a cash operating cost of US$204 per oz., according to a feasibility-level study of the operation.
With a projected after-tax rate-of-return of 34%, the project appears to be a profitable one. Capital costs stand at US$4.9 million, plus US$4.7 million for preproduction stripping.
Vista based its production figures and cost estimates on a pit design incorporating a combination of proven and probable reserves and measured, indicated and inferred resources. The total tonnage is estimated at 31.4 million averaging 0.02 oz. per ton, equivalent to 621,700 oz. gold. This figure includes reserves of 23.8 million tons grading 0.02 oz. per ton.
These figures are based on a gold price of US$300 per oz., and Vista reports that the stripping ratio is 1.24-to-1.
In addition to the defined reserves and resources, Vista has identified 14.9 million tons grading 0.017 oz. gold, or 250,000 oz.
The company has also identified a significant geochemical anomaly in an area previously thought to contain no mineralization. This area, east of the Brimstone deposit, is already half the length of Brimstone, measuring 2,200 by 700 ft., and is bounded on the east by a fault. Vista believes the anomaly has the potential to contain mineralization of a higher grade than that at Brimstone.
Vista stopped mining at Hycroft in December 1998, though residual leaching produced 40,075 oz. gold in the following year and is expected to produce more than 12,000 oz. in 2000.
The company began mining from Brimstone in 1996 and soon found that production from northern part of the pit exceeded expectations.
At the end of the first quarter, Vista had US$1.8 million in cash and unsold bullion.
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