Vista marks milestone at Hycroft

The Hycroft mine in northern Nevada has poured its one-millionth ounce, following the second straight quarter of record gold production.

Vista Gold (VGZ-Z) reports that the mine cranked out 35,171 oz. in the second quarter, representing a 16% increase over the corresponding period of 1997. Production in the first half of 1998 was 70,188 oz., also 16% higher than the corresponding period last year.

The figures are especially welcome given that, in January, the company announced plans to suspend mining and lay off personnel. However, because of higher-than-expected grades from the Brimstone pit, where most

of the reserves are contained, Vista has been able to push back the closure date to September from May. The higher grades

also boosted the mine’s anticipated output for the year to 108,000 oz. gold.

Vista is examining various plans that would allow mining to resume once gold prices rise. In the interim, the company will begin reclamation in areas that will not be affected by future operations. It is also pursuing joint-venture opportunities for the deeper and potentially higher-grade mineralization.

Farther afield, the company’s subsidiary, Zamora Gold (ZMRA-C), has acquired various properties in Ecuador from Compania Minera Gribipe. Vista’s ownership of Zamora has meanwhile been reduced to 26.5% from nearly 49%.

Vista posted second-quarter income of US$502,000 (or 1 cents per share), compared with a loss of US$1.2 million (1 cents per share) in the corresponding period last year. For the first six months, earnings totalled US$2.7 million (3 cents per share), compared with a loss of US$1.9 million (2 cents per share) in the first half of 1997.