Vista Gold acquires N. Sulawesi gold property

Colorado-based junior mining firm Vista Gold Corp.announced on Monday that its board of directors had approved the exercise of the purchase option for the Awak Mas gold deposit located in Northern part of Sulawesi.

The company entered into an option agreement to acquire the Awak Mas deposit for a purchase price of U.S. $1,500,000 in NOvember 2004. Under the terms of the agreement, Vista had a six-month option period in which to conduct due diligence while paying the owners U.S. $15,000 per month. The monthly option payments, as well as costs up to U.S. $150,000 expended to correct any deficiencies in asset standing, will be credited towards the purchase price. The closing is anticipated to occur on or before May 6, 2005.

According to an analysis an independent consulting firm, the property is known to contain measured and indicated resources of 52,580,000 short tons at a grade of 0.032 ounces per ton containing 1,656,000 gold ounces and inferred resources of 8,250,000 short tons at a grade of 0.032 ounces per ton containing 259,000 gold ounces.

Vista President and CEO Mike Richings stated "Acquiring measured and indicated resources of 1.7 million gold ounces plus an inferred resource of 0.3 million gold ounces at a cost of U.S. $1.5 million, in a project whose previous operators spent over AUD $46 million and completed a final feasibility study, is very attractive to Vista. We will be attempting to expand the gold resources by strategic exploration over the next several years and to enhance the economics of the project through engineering studies." (alex)