Vista Gold has released feasibility study findings for its Mount Todd gold project, showing a $1.4 billion NPV for the asset – which is forecast to to deliver compelling cashflows over a 16-year mine life. 

Gold reserves for the Northern Territory project, 50 km north of Katherine, increased 19 per cent to 6.98 million ounces.

This translated to an expected average annual production of 479,000 ounces of gold during the first seven years of commercial operations.

The company estimates it would cost about $1.2 billion to bring the brownfields project into production.

It would be expected to employ an ongoing workforce of 350 during operations.

Vista president and chief executive officer Frederick H. Earnest said the feasibility study affirmed the strength of Mount Todd’s gold production capacity and ability to deliver solid economic results.

“The scale, quality of work completed and location of Mount Todd, together with the feasibility study and the fact that all major authorisations for development have been obtained, distinguish Mount Todd as a unique development opportunity,” he said.

“We believe the results of the FS will appeal to many potential partners, investors and lenders and allow us to evaluate a broad range of development alternatives as we continue to focus on maximizing shareholder value.”

He said the study costings reflected the inflationary pressures being faced by all operators in the mining industry.

“While we believe this inflationary trend is transitory, the resilience of Mount Todd is amply demonstrated by the robust project economics reflected in the FS,” he said.

The Mount Todd gold site covers a mine tenement of more than 153,700 ha, which includes the Batman and Quigley’s gold deposits.

The site was acquired by Vista Gold and its wholly owned subsidiary Vista Gold Australia in 2006.

Currently not in production, the mine site hosts substantial existing infrastructure including: paved access from the major transportation corridor, a natural gas pipeline to site for future power generation, medium-tension power lines, a fresh water reservoir, and tailings facility.