Armed conflict ends at Vista’s Bolivian mines

A group of armed miners has returned the Amayapampa and Capa Circa gold mines in Bolivia to owner Vista Gold (VGZ-T).

The Bolivian government recently signed an agreement with the miners, ending a conflict that left three dead and at least 13 injured. To enforce the agreement, the government will maintain increased policing of the area.

Amayapampa, an open-pit operation, is 9 miles from the underground Capa Circa mine. Both are about 120 miles southeast of La Paz.

Vista is attempting to modify Amayapampa and Capa Circa. Late last year, the company closed the mines for safety and environmental reasons. The company continued to pay the 150 miners at Amayapampa for work on exploration and development activities, as well as for infrastructure improvements in their village. At Capa Circa, Vista had hoped to keep miners employed during the shutdown of mining operations but found that it was unable to gain access to the site despite months of talks with the miners and government officials.

At the Amayapampa site, Vista plans to construct a modern mine, beginning in June 1997, once a feasibility study and a 30,000-ft. development drilling program are completed. Production is envisaged for June 1998.

At Capa Circa, Vista plans to begin a similar feasibility study, as well as drilling and development work.

A preliminary study of the two mines indicates a combined production rate of 100,000 oz. gold per year by 1999, given a US$65-million investment. Ore processing will include standard gravity, flotation and cyanide-leach methods, with cash costs projected at US$140 per oz. gold.

Mid-tier producer Vista Gold, is the product of a recent merger between Denver-based Granges and Vancouver-based Da Capo Resources, which formerly owned the two Bolivian mines.

Vista holds five more gold prospects in Bolivia: the wholly-owned Copacabana and Irpa Irpa properties; and the joint-ventured San Gerardo, Iroco and India properties.