If you do the Math, you will be a buyer like I am.
Mt. Todd, Australia - In 2006, we acquired 100% of the Mt. Todd gold project in Northern Territory for $2.1 million, which equated to a cost of $0.66 per ounce of gold acquired. Since the acquisition, we have increased the measured and indicated gold resources at the Batman deposit by 192% and the estimated global gold resources (measured, indicated and inferred) by 126% to 7.4 million ounces of gold. At the present time, proven and probable reserves in the Batman deposit are estimated to be 4.1 million ounces with an additional estimated 1.0 million ounces of measured and indicated resources. Vista completed a pre-feasibility study in 2010 which was announced on August 18, 2010. This study demonstrated the technical and economic viability of the project using the existing tailings storage facility with a capacity of 60 million tonnes. In January 2011, Vista announced the completion of a new pre-feasibility study that expanded upon the August pre-feasibility study. The new pre-feasibility study evaluates the viability of a 30,000 tonne per day processing facility and the optimized extraction of the current estimated mineral resource. The larger project has improved economic returns and increases the projected average annual production to 250,000 ounces per year in the first five years of the project. Other project enhancements were incorporated, including deferring the construction of a new tailings storage facility until later in the project life. Based on the positive results of both studies, we have commenced a definitive (bankable) feasibility study for the Mt. Todd gold project that we expect to complete in the latter part of 2011.
The Mt. Todd gold project is "brownfield development" with significant existing infrastructure including paved access from the major transportation corridor, a natural gas pipeline to site and medium-tension power lines for power generation, a fresh water reservoir and water treatment plant, readily available labor and technical personnel. The Northern Territory government is supportive of new mineral developments and there are no Aboriginal rights issues associated with the project.
In a press release on September 8, 2010, the Company announced a mineral resource estimate of 179,000 ounces of measured and indicated resources and 277,000 ounces of inferred resources at the Quigleys deposit, which is one of several satellite deposits at the Mt Todd gold project. Quigleys is located 3.5 km northeast of the Batman deposit and is potentially higher grade than the Batman deposit.
The Mt. Todd gold project has significant exploration and district expansion potential across the project's more than 1,176 km2 of exploration licenses. In the fall of 2010, prior to the start of the wet season, Vista undertook a limited exploration program on one of four previously announced exploration targets. The Company completed four diamond core holes on the Golden Eye target (previously called the MSTS-4 target). All four holes encountered strong sulfide mineralization associated with banded iron formation with interesting concentrations of copper, lead and zinc. Hole GE10-003 encountered one interval of 1.1 meters averaging 7.69 grams per tonne gold ("g/t Au"), including 0.3 meters of 26.7 g/t Au. Vista intends to resume drilling activities on the exploration licenses as soon as the wet season ends and access can be reestablished.