08:23 AM EDT, 10/31/2024 (MT Newswires) -- Vista Gold ( 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.