Vista plans to restart Hycroft

Vista Gold (VGZ-X) intends to resume mining at its Hycroft gold property in northern Nevada following encouraging results from recent drilling.

Results from the 10-hole program indicate that gold grades are 36% higher than previously believed.

Vista says the mine is capable of producing 380,000 oz. gold over the next six year at an average cash operating cost of US$221 per oz. Net cash flow is pegged at US$21 million.

Mining ceased in December 1998, and the company says restarting the operation will cost an estimated US$8 million, which it intends to raise in the first quarter.

New reserves for the Brimstone zone will be released in late February.

For the fourth quarter of 1990, Vista is expected to take a US$2.9-million writedown related to closure of the Mineral Ridge mine in central Nevada. (In December, operations ceased and the company’s operating subsidiary, Mineral Ridge Resources, filed for bankruptcy.)