Pretivm Reports Fourth Quarter and Year End 2013 Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 4, 2014) -
Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) ("Pretivm") is pleased
to report the following highlights from the fourth quarter of 2013
and updates for the high-grade gold Brucejack Project in northern
British Columbia.
Fourth Quarter 2013 Highlights and Significant
Events
- In early October 2013, processing of the material from the
10,000-tonne Valley of the Kings Bulk Sample Program ("the
Program") commenced at a custom mill located in Montana; and on
October 9th we announced that Strathcona Mineral Services Ltd.
withdrew from the Program.
- Underground exploration work continued in October, including
drilling and raises on the Cleopatra Structure and 615L drift; and
we announced drill results from Program drilling and the
underground exploration program at the Valley of the Kings with a
combined total of 19 intersections grading greater than 1,000 grams
gold per tonne uncut.
- On November 22, 2013, we announced production of 4,215 ounces
of gold from the 8,090 dry tonnes of excavated Program material
processed to date, surpassing the target of 4,000 ounces of gold
projected to be produced from the entire 10,000 tonnes of excavated
material.
- On December 2, 2013, we announced the remaining assay results
from underground exploration drilling in the Valley of the Kings,
including 8 intersections grading greater than 1,000 grams per
tonne gold uncut from 6,164 meters of drilling in 46 holes.
- On December 13, 2013, we announced the completed production of
5,865 ounces of gold from the total 10,302 dry tonnes of excavated
material from the Program.
- On December 19, 2013 we announced an updated Valley of the
Kings Mineral Resource estimate for our Brucejack Project,
completed by Snowden Mining Industry Consultants ("Snowden").
Measured and Indicated Mineral Resources total 8.7 million ounces
of gold at a grade of 17.6 grams of gold per tonne, and Inferred
Mineral Resources of 4.9 million ounces of gold at a grade of 25.6
grams of gold per tonne.
- Working capital at December 31, 2013 was $11.2 million plus
pending gold sale receipts from the Program.
- Subsequent to the end of the quarter, on February 20, 2014 we
announced a private placement with a syndicate of agents for
568,182 Investment Tax Credit flow-through common shares of Pretivm
at a price of $8.80 per share and 1,863,355 Canadian Exploration
Expense flow-through common shares of Pretivm at a price of $8.05
per share for aggregate gross proceeds of $20 million. The agents
were granted an option to purchase, or arrange for substituted
purchasers for, up to an additional 745,342 additional Canadian
Exploration Expense flow-through common shares of Pretivm at the
issue price at any point up until 14 days following the
closing.
Successful 2013 Bulk Sample Program; Updated Resource
Estimate
The Program consisted of two elements: the excavation of a
10,000-tonne bulk sample and a 15,000-meter (subsequently increased
to a 16,789-meter) underground drill program. The Program was
designed to test the full widths of two of the domains of
mineralization used to estimate the November 2012 Valley of the
Kings Mineral Resource. As a result, the Program targeted the full
range of the projected resource block grades which span from zero
grams of gold per tonne to in excess of 60 grams of gold per
tonne.
The Program was successful in confirming the geological model
for the Valley of the Kings, validating the robustness of the
global high-grade Mineral Resource estimate, and facilitating
parameter optimization for the updated December 2013 Mineral
Resource estimate.
The material excavated and processed from the Program produced a
total of 5,741 ounces of gold as gravity and flotation
concentrates. We have received settlement on 1,674 ounces of the
gravity concentrate and are waiting on settlement from the sale of
the remainder of the gravity concentrate and flotation
concentrate.
December 2013 Resource Estimate
On December 19, 2013, we announced an updated high-grade Mineral
Resource estimate for the Valley of the Kings (see news release
dated December 19, 2013). The resource estimate, which
incorporated all drilling completed to date at the Valley of the
Kings, including all drilling from the 2013 exploration program,
was completed by Snowden (see the Brucejack Project Mineral
Resources Update Technical Report dated December 19, 2013 and filed
on SEDAR on February 2, 2014). High-grade gold resources in
the Valley of the Kings (5.0 g/t gold-equivalent cut-off)
total:
- 1.2 million ounces of gold in the Measured Mineral Resource
category (2.0 million tonnes grading 19.3 grams of gold per
tonne);
- 7.5 million ounces of gold in the Indicated Mineral Resource
category (13.4 million tonnes grading 17.4 grams of gold per
tonne); and
- 4.9 million ounces of gold in the Inferred Mineral Resource
category (5.9 million tonnes grading 25.6 grams of gold per
tonne).
The updated December 2013 Valley of the Kings Mineral Resource
estimate, which added Measured mineral resources and increased the
gold grade from the November 2012 Valley of the Kings Mineral
Resource estimate, is being used to amend the June 2013 Feasibility
Study for the Brucejack Project.
Advancing the Brucejack Project: Amending the Feasibility
Study and Permitting
The amended Feasibility Study for the Brucejack Project,
expected in the second quarter, will additionally use lower metals
prices ($1,100/oz gold and $17/oz silver) and an exchange rate of
$0.92 CAD:US. Based on the positive results from the bulk sample,
potential refinements are being evaluated in the areas of mining,
metallurgy and flow-sheet optimization in order to reduce Project
capital and operating expenditures. The Brucejack Project is
planned as a 2,700 tonnes per day underground mine using the bulk
mining method of longhole open stoping with a cemented paste
backfill.
The permitting process for an underground mine at the Brucejack
Project is now underway. In late November 2013, Pretivm
participated in five Open Houses conducted by the BC Environmental
Assessment Office (EAO) as part of the first public comment period.
We expect to submit our Environmental Assessment Certificate
application in late March/early April and engage in the subsequent
Provincial and Federal review process with a target of 2016 for
commercial production.
2014 Exploration Activities
Underground exploration during 2013 included drifting and
cross-cutting of the Cleopatra Structure and Domain 20 and raises
on the Cleopatra Structure and the 615L drift. While conducting the
underground exploration program, high-grade gold mineralization
encountered was bagged for future processing. In January 2014,
approximately 1,000 tonnes of this material was transported to the
Contact Mill in Montana. Processing of the 1,000 tonnes at the
Contact Mill was completed in February 2014. We are waiting on
settlement from the sale of the gravity and flotation concentrate
produced from the 1,000 tonnes.
An additional 1,000 tonnes of material from the Valley of the
Kings is permitted to be excavated and processed in 2014, and we
are currently evaluating the optimal high-grade target area for
this program.
Planning is also underway for an underground drill program
targeting extreme grade mineralization at depth in the Valley of
the Kings which could optimize mine planning and also potentially
expand the area of known high-grade mineralization.
Ian I Chang, M.A.Sc., P.Eng., Vice President, Project
Development, Pretium Resources Inc. is the Qualified Person (QP)
responsible for Brucejack Project development. Kenneth C.
McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, Pretium
Resources Inc. is the Qualified Person (QP) responsible for the
Brucejack Project exploration program.
With our current working capital, and pending gold sale receipts
and successful completion of our private placement, we believe we
will have sufficient funds for our current planned expenditures on
our Projects, updating our feasibility study and funding our
permitting activities as we advance the Brucejack Project to
production.
Pretivm's audited consolidated financial statements and
Management Discussion and Analysis for the year ended December 31,
2013 will be filed on SEDAR and available on Pretivm's web site
www.pretivm.com.
About Pretivm
Pretivm is creating value through gold at its high-grade gold
Brucejack Project, located in northern British Columbia. Permitting
of a high-grade underground gold mine at Brucejack is underway,
with commercial production targeted to commence in 2016.
(SEDAR filings: Pretium Resources Inc.)
Forward-Looking Statements
This News Release contains "forward-looking information" and
"forward looking statements" within the meaning of applicable
Canadian and United States securities legislation. Forward-looking
information may include, but is not limited to, risks related to
satisfying conditions of the Offering, information with respect to
our planned exploration and development activities, the adequacy of
Pretivm's financial resources, the estimation of mineral reserves
and resources including the 2013 Valley of the Kings Mineral
Resource estimate, realization of mineral reserve and resource
estimates and timing of development of Pretivm's Brucejack Project,
costs and timing of future exploration, results of future
exploration and drilling, production and processing estimates,
capital and operating cost estimates, timelines and similar
statements relating to the economic viability of the Brucejack
Project, timing and receipt of approvals, consents and permits
under applicable legislation, Pretivm's executive compensation
approach and practice, and adequacy of financial resources.
Wherever possible, words such as "plans", "expects", "projects",
"assumes", "budget", "strategy", "scheduled", "estimates",
"forecasts", "anticipates", "believes", "intends", "targets" and
similar expressions or statements that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved, or the negative forms of any of these terms and
similar expressions, have been used to identify forward-looking
statements and information. Statements concerning mineral reserve
and resource estimates may also be deemed to constitute
forward-looking information to the extent that they involve
estimates of the mineralization that will be encountered if the
property is developed. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance are not statements of historical fact and may be
forward-looking information. Forward-looking information is subject
to a variety of known and unknown risks, uncertainties and other
factors that could cause actual events or results to differ from
those expressed or implied by the forward-looking information,
including, without limitation, those risks identified in Pretivm's
Annual Information Form dated March 18, 2013 filed on SEDAR at
www.sedar.com and in the United States on Form 40-F through EDGAR
at the SEC's website at www.sec.gov. Forward-looking information is
based on the expectations and opinions of Pretivm's management on
the date the statements are made. The assumptions used in the
preparation of such statements, although considered reasonable at
the time of preparation, may prove to be imprecise. We do not
assume any obligation to update forward-looking information,
whether as a result of new information, future events or otherwise,
other than as required by applicable law. For the reasons set forth
above, prospective investors should not place undue reliance on
forward-looking information. Neither the TSX nor the NYSE has
approved or disapproved of the information contained herein.
Pretium Resources Inc.Robert QuartermainPresident and Chief
Executive Officer(604)558-1784Pretium Resources Inc.Michelle
RomeroVice President, Corporate
Relations(604)558-1784invest@pretivm.comwww.pretivm.com
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