Vista Gold (VGZ-T, VGZ-X) has bulked up its resource estimate for the Batman deposit at its Mount Todd gold project in Australia’s Northern Territory.
The Batman deposit now hosts 7.01 million oz. gold in the measured and indicated category, based on 261 million tonnes grading 0.83 gram gold per tonne. It has another 2.09 million oz. in inferred from 88.7 million tonnes of 0.73 gram gold. A cut-off grade of 0.40 gram gold was used, as in its previous two estimates.
Gold ounces in the updated measured and indicated resource grew 17%, or 1 million oz., compared to last September’s estimate; and by 37%, or 1.8 million oz., over last January’s prefeasibility study.
The increase in gold count resulted from the Denver-based miner incorporating 18 holes, or 13,000 metres, from its ongoing infill drill program.
The company’s president and CEO Frederick Earnest said the continued drilling success at Batman supports the company’s decision to ponder the viability of a project larger than the 30,000-tonne-per-day operation envisioned in the prefeasibility.
The prefeasibility study estimated annual production of 240,000 oz. gold throughout the project’s 14-year life. Capital costs were pegged at US$676 million.
Batman has gold reserves of 149.8 million tonnes at 0.85 gram gold, for 4.1 million oz.
“The results of our past and ongoing drilling programs, combined with technical evaluations in progress, support my belief that Mount Todd is becoming a world-class gold project in one of the world’s most favourable mining jurisdictions,” Earnest commented.
In Mexico — which is another popular mining destination — Vista is moving ahead its Guadalupe de los Reyes gold-silver exploration project in Sinaloa state. In early August, it reported the final 25 holes from its 48-hole initial drill program. The company started the program in April and completed around 7,200 metres, with a goal of validating and updating the existing resource, and completing a preliminary economic assessment by year-end.
The project has a measured and indicated gold resource of 485,000 oz., with 316,000 oz. in inferred.
Highlights from the program include: 8.1 metres carrying 2.8 grams gold and 32.8 grams silver, including 2 metres of 6.6 grams gold and 50.1 grams silver; 2 metres of 38.7 grams gold and 201 grams silver; and 23.7 metres of 3.5 grams gold and 132 grams silver, including 4 metres of 12.7 grams gold and 348 grams silver.
Earlier this year, Vista entered a 60% earn-in agreement with Mexico-based Invecture Group, where the latter could earn up to 62.5% of the company’s Concordia gold project in Baja California Sur for US$2 million. The right expires in February 2014.
On the resource update, the stock added 4% to close Sept. 4 at $3.18. More recently, it ended at $3.38, within a 52-week range of $2.34 and $4.37.
Be the first to comment on "Vista keeps growing Mt. Todd"