Tetra Tech: RBC Capital maintains Outperform, lowers PT to $47.

Tetra Tech: RBC Capital maintains Outperform, lowers PT to $47.

Vista Gold Corp. (NYSE American and TSX: VGZ) has announced the completion of a 15,000 tonnes per day (tpd) feasibility study (2025 FS) for its Mt Todd gold project, demonstrating a favorable development alternative to its previous 50,000 tpd feasibility study (2024 FS). The 2025 FS highlights strong and stable gold production, robust economics, and significant capital cost reductions.

The 2025 FS projects an average annual gold production of 153,000 ounces during years 1-15, with an average ore grade of 1.04 grams gold per tonne (g Au/t) and a life-of-mine average gold recovery of 88.5%. The study indicates an after-tax NPV (5%) of $1.1 billion with an after-tax IRR of 27.8% at a gold price of $2,500 per ounce, and $2.2 billion with an after-tax IRR of 44.7% at a gold price of $3,300 per ounce. The initial capital requirements have been reduced by 59% to $425 million, with a capital efficiency of $93 per ounce.

The study prioritizes an initial project scale designed to significantly reduce initial capital costs, development risk, and operational risks. It incorporates contract mining and third-party power generation, contributing to capital cost savings and reducing operational risks. The study also contemplates future expansion opportunities, although these were not evaluated.

The 2025 FS was conducted by a team of independent technical consultants, including GR Engineering Services, Mining Plus, Tetra Tech, Tierra Group International, Ltd., and WSP. Each of these firms has a proven track record in Australian and international projects.

The Mt Todd deposit has a large, higher-grade central core, which the study concentrates on mining at a higher cut-off grade. Ore stockpiles will be used to prioritize higher-grade ore to the processing plant in early years, with material below the cut-off grade segregated in the waste rock dump for possible future processing.

The processing circuit includes primary gyratory, secondary cone, and third-stage high-pressure grinding roll crushing, followed by single-stage x-ray transmission sorting and two stages of grinding. The final product is leached in a conventional carbon-in-leach (CIL) circuit, with tailings deposited in one of two tailings storage facilities (TSFs).

The study contemplates concurrent reclamation of the waste rock dump and TSFs, with a water treatment facility planned as part of the water management plan. The closure plan includes re-processing 13 million tonnes of heap leach material from previous operations, generating approximately $88 million of pre-tax cash operating margin.

The 2025 FS demonstrates a very attractive development alternative for Mt Todd, positioning it as a project with technical and economic parameters comparable to several highly valued Australian gold producers.