Detailed narrative
Mt Todd Project Development Strategy
Vista Gold continued to execute its strategy for the stand-alone development of the Mt Todd gold project. The company achieved meaningful progress on permitting, added to its Australia-based project leadership team, progressed technical optimization programs, and advanced project execution planning.
These efforts are aimed at positioning Mt Todd for the start of detailed engineering and design in 2027, followed by an approximate 27-month period encompassing construction and commissioning.
Permitting Progress
Work to obtain approvals for permit modifications, aligning existing approvals with the 2025 feasibility study, is progressing as planned. The company is actively collaborating with regulators, consultants, and stakeholders. Authorization for certain modifications has been received, with additional approvals expected in the second half of 2026 and final approvals anticipated in 2027. This progress is crucial for the project's advancement.
Technical Optimization Programs
Vista Gold is advancing several predevelopment optimization programs to derisk the project and support detailed engineering. A comprehensive metallurgical test program, focused on optimizing grind size and gold recoveries, is entering its final stages, with results expected late in Q3 FY26.
Additionally, a geotechnical program designed to evaluate opportunities for steepening the west pit wall, reducing waste stripping, and potentially converting mineral resources to reserves is nearing completion.
Site Dewatering Challenges
Due to greater than normal precipitation during the recent wet season, the Mt Todd mine site has a much higher water inventory than expected. The company has commenced the initial phase of a dewatering program at the Batman pit and tailings storage facility, with additional phases planned to begin later in the year.
This program is essential for managing site conditions and preparing for future development.
Team Building and ESG Commitments
The company is actively building its Australia-based executive leadership and project development teams, with recruiting ongoing for key roles, including a Managing Director. Vista Gold remains committed to safety, reporting 0 incidents during the quarter, and environmental stewardship. A new social impact assessment has been commenced, and engagement with the Jawoyn Association Aboriginal Corporation and other stakeholders is ongoing.
Project Economics and Shareholder Value
Mt Todd is highlighted as an attractive large resource development stage project with strong economics. At a conservative gold price of $3,300 per ounce and an all-in sustaining cost of $1,500 per ounce, the project is projected to generate USD 300 million of free cash flow annually.
The feasibility study estimates a net asset value per share of $14.89 at this gold price, which is nearly nine times the current share price.