Mining News
Vista Gold a step closer to start gold mining in Australia
(Kitco News) - Today, Vista Gold (NYSE American: VGZ; TSX: VGZ) announced that it has received approval of the Mining Management Plan ("MMP") by the Northern Territory Government for the company's 100% owned Mt Todd gold project located in Northern Territory, Australia.
According to the company's statement, the MMP (similar to a mine operating permit in North America) is the final major authorization required for the development of the Mt Todd mine. The receipt of this approval marks the achievement of a significant de-risking milestone that has been the focus of the company for the last three years, added Vista.
The company said that this approval, combined with the previously approved major environmental permits, recognizes the quality and advanced stage of engineering and project planning, and is a fundamental part of the company's strategy for gaining greater recognition of the intrinsic value of Mt Todd.
President and CEO Frederick H. Earnest stated, "The approval of the MMP is a landmark achievement for Vista, its shareholders and the Northern Territory. We believe the approval of the MMP distinguishes Mt Todd as an attractive, de-risked, and partner-ready development-stage gold project highlighted by a large-scale production design, low expected operating costs, mining friendly jurisdiction, substantial existing infrastructure, strong social and government support, and all major authorizations in hand."
Vista noted that at a gold price of $1,900 and a foreign exchange rate of US$0.775=A$1.00, the after-tax NPV5% of the project is estimated to be $1.7 billion with an after-tax IRR of more than 38.8%.
The company pointed out that situated approximately 250 km southeast of Darwin, Mt Todd is the largest undeveloped gold project in Australia and, if developed as presently designed, would potentially be Australia's fourth largest gold producer on an annual basis, with lowest tertile in-country and global all-in sustaining costs. All major operating and environmental permits have now been approved.
