Vista Gold buying Awak Mas deposit

Vancouver – After five months of tire kicking, Vista Gold (VGZ-T) is writing the cheque to purchase the Awak Mas gold deposit in Indonesia.

The Denver-based company is acquiring the deposit, with a 1.7 million oz. contained gold resource, for US$1.5 million.

Awak Mas, located on the Indonesian island of Sulawesi, previously had over Aus$46 million spent by Battle Mountain Gold, now part of Newmont Mining (NEM-N), and by Aussie companies Lone Star Exploration and Masmindo Mining through the 1990s. A full feasibility study by Minproc Engineers was completed in 1996 reviewing a 3-million-tonne-per-year operation; however, weakening gold prices in the late-1990s thwarted development of the project. Placer Dome (PDG-T) reviewed the deposit in 1998-99 but it did not meet its size parameters and the option was dropped.

In late-2004 a mineral resource estimate was prepared by Perth-based engineering firm RSG Global. The study calculated a measured and indicated resource of 47.8 million tonnes grading 1.1 grams gold per tonne using a 0.5 gram gold cut-off grade. An additional inferred resource of 7.5 million tonnes at 1.1 grams gold was also reviewed.

Vista Gold plans to explore for additional resources on the property and will look at enhancing the project’s economics.

The company also holds a number of advanced gold projects in the western United States and in Mexico and Bolivia.

Vista has a $73-million market capitalization based on its 18.2 million shares outstanding. The company recently trades at the $4.00 per share level, near the lower end of its 52-week range of $3.75-6.65.