Vista writes down asset

Denver — Low gold prices have forced Vista Gold (VGZ-X) to write down the value of the Amayapampa property in Bolivia, resulting in a net loss for the year of US$13.2 million (or 15 per share).

The loss for the year before the writedown was US$2.3 million, compared with a loss of US$11.5 million before writedowns in 1999, resulting in a net loss of US$27.7 million (31 per share).

Vista retains a value of US$10.8 million for Amayapampa, after a writedown of US$10.9 million. The property remains an attractive project at gold prices above US$325 per oz., the company says. Proven and probable reserves stand at 526,000 oz. within 10.2 million tons grading 0.051 oz. per ton.

For the year, Vista produced 13,493 oz. gold from residual leaching at the Hycroft mine in northern Nevada. Cash operating costs were US$183 per oz., down from US$277 per oz. in 1999. The company suspended mining at the open-pit mine in December 1998. Production in 2001 should continue to tail off, reaching little more than 3,000 oz.

Vista believes it can restart mining from the Brimstone pit with a minimum working capital of US$20 million. Recent studies suggest that the operation could produce 350,000 oz. gold over five years. With a little drilling, production could be extended by another two years. At last report, the company’s working capital totalled US$202,000.