PEA for Vista Gold’s Guadalupe de los Reyes Shows After-Tax Net Present Value of $57.3 Million

Vista Gold Corp. (NYSE:VGZ, TSX:VGZ)  announced that the PEA for its Guadalupe de los Reyes gold/silver project in Sinaloa, Mexico indicates an after-tax NPV of $57.3 million.

As quoted in the press release:

Highlights of the PEA include: •Payable production of 327,681 ounces of gold and 4.39 million ounces of silver over a 11 year mine life, including average payable production of 35,031 ounces gold and 253,223 ounces silver over the first five years; •Ore processed through a 1,500 tonne per day (“tpd”) plant; •Gold and silver recoveries of 93% and 83% respectively, through a conventional CIL recovery circuit; •Gold-equivalent cash costs of $631 per ounce over the life of mine, including average gold-equivalent cash costs of$568 per ounce over the first five years; •Initial capital costs of $88.9 million and life of mine capital costs of $124.3 million, including a 30% contingency; and •After-tax NPV8% of $57.3 million, Internal Rate of Return (“IRR”) of 21%, and capital payback of 3.6 years using gold and silver prices of $1,480 and $28 per ounce, respectively.

Vista’s President and CEO, Fred Earnest, said:

This Preliminary Economic Assessment demonstrates the potential for a small but profitable project with low estimated initial capital requirements. This PEA contemplates mining material within the current identified resource estimate, located in the lower-grade, near-surface stockwork zones. Meanwhile, our exploration efforts from last year continued to identify the potential for high gold grades and bonanza silver grades at depth.

To view the whole press release, click here.