Vista Gold (VGZ.TO, VGZ) on Thursday said exploration drilling at its Mt Todd gold project in Australia showed gold mineralization.
The company said the best results from six holes drilled into the South Cross Lode zone (SXL) on the property included 8.0 meters of core testing at 1.2 grams per tonne of gold and 12 meters testing at 0.96 grams per tonne of gold.
"Results from the ongoing drilling program continue to indicate that the SXL is a narrower mineralized structure with well-defined packages of high-grade quartz-sulfide veins," Chief Executive Frederick Earnest said in a release. "Today's results continue to demonstrate encouraging mineralized intervals near surface and at depth."
The company plans to complete a feasibility study for a mining project at Mt Todd after concluding its summer drilling campaign at the property. It expects the study to back a mine costing less than $400 million and producing up to 200,000 ounces of gold per year.
Vista shares closed up $0.02 to $0.95 Wednesday on the Toronto Stock Exchange.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.