AWAK MAS

Vista Gold announced the results from a preliminary assessment for the Awak Mas gold project in Sulawesi, Indonesia. In the preliminary assessment, four different production scenarios were considered; three cases at a production rate of 2.0 Mt of ore per year and one case at 3.5 Mt of ore per year. All four cases assumed contract open-pit mining and a base case gold price of US$625 per ounce. Estimates of projected total gold production ranged from 600,900 ounces to 1,040,000 ounces, with estimated project lives ranging from 7 to 15 years depending on production rate and the ultimate pit shape considered for the scenario. Overall gold recovery is estimated at 90.5%. Economic sensitivity analysis indicated that, primarily as a result of high energy prices and infrastructure costs, the Awak Mas project needs sustained gold prices in excess of US$800 per ounce to justify development.

Results of a preliminary assessment were provided. The flowsheet includes a flotation circuit to recover gold associated with sulfide minerals following which the concentrate would be treated in a carbon-in-leach circuit to recover the gold. The benign tailings from the flotation circuit would flow by gravity into a tailings impoundment and the sulfide tailings would be detoxified, filtered and conveyed to a small ‘‘dry-stack’’ sulfide tailings storage facility. The potential development included four different scenarios that would produce an estimated 0.6 to 1.0 million ounces of gold over a project life of 7 to 15 years. Gustavson estimated the preproduction capital to be $124 million to $178 million, depending on the scenario, and the total capital cost over the project life to be $148 million to $218 million. (Dec 31/07)

A technical report dated Jun 6/07 was released. Among the recommendations, the return pulps should be stored in a manner that maintains their integrity. Moreover, prior to final production planning, some additional development drilling should be completed to fully understand the local continuity of higher-grade gold mineralization.