Mount Todd Project MLN 1070, MLN 1071 and MLN 1127 Annual report for the period ended 4 March 2012

Abstract

The three mining leases, MLN 1070, MLN 1071 and MLN 1127 comprise a portion of the Mount Todd Project area and cover 54.15 square km (4% of the project area). The mining leases are situated approximately 42 km north of the town of Katherine. This annual report documents the work completed on the leases comprising MLN 1070, MLN 1071 and MLN 1127 for the period March 5, 2011 to March 4, 2012. The leases were originally granted on 5 March 1993 and were transferred to Vista Gold Australia Pty Ltd. by the Northern Territory Government on June 15, 2006. Vista Gold Australia Pty Ltd. is the operator and manages the exploration work. Work on the project during the Reporting Year included 13,301.4 metres of drilling consisting of 76 holes. Fifty-three of these were diamond holes and of these 13 were resource definition holes testing infill and step-out targets, five were metallurgical test holes and 35 were geotechnical holes, for a total of 12,676.4 metres of diamond drilling. All but two diamond holes were drilled from surface, with the remaining two being daughter holes launched from casing wedges. The remaining 23 holes comprised 12 air-core remnant resource definition holes and 11 water monitoring bores, totaling 625 metres. With the exception of two of the water monitoring bores, all of the drilling was conducted on mining lease MLN 1070. A total of 5532 samples were submitted from the program to NAL and ALS Chemex for analyses. A soil sampling program was carried out during the reporting period on an area that covers a portion of each of MLN 1070, MLN 1071 and MLN 1127. A total of 848 samples were collected, with the work ongoing at the end of the reporting period.