07:39 AM EST, 12/10/2024 (MT Newswires) -- Vista Gold ( VGZ ) on Tuesday said it has begun a feasibility study for its Mt Todd gold project in Australia's Northern Territory, to increase the reserve grade to 1 gram gold per tonne and reduce the initial capex to $400 million.

The study also aims to achieve average annual gold production ranging from 150,000 to 200,000 ounces from 5.2 million tonnes per annum (Mtpa) ore throughput. The study is expected to be completed in the middle of next year.

"After carefully evaluating the potential benefits, we have decided to design a project with a 15,000 tonne per day throughput rate, nominally 5.2 Mtpa," said CEO Frederick Earnest. "We are targeting a reduction of approximately 60% in initial capital costs from the large-scale project feasibility study published earlier this year, and a significant increase in reserve grade to 1 gram gold per tonne with a higher ore cut-off grade. The project design will retain the optionality for future expansion."