Pretivm Reports First Quarter 2014 Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 14, 2014) -
Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) ("Pretivm") is pleased
to report the following highlights from the first quarter of 2014
and updates for the high-grade gold Brucejack Project in northern
British Columbia.
First Quarter 2014 Highlights and Significant
Events
- On February 20, 2014, we announced a private placement (the
"Offering") 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 (the "CEE Flow-Through Shares") at a price
of $8.05 per share for aggregate gross proceeds of $20 million. The
agents were granted an option (the "Agent's Option") to purchase,
or arrange for substituted purchasers, for up to 745,342 additional
Canadian Exploration Expense flow-through common shares at the
issue price at any point up until 14 days following the
closing.
- In March 2014, we announced the increase of the Agent's Option
by 248,448 CEE Flow-Through Shares and the exercise of the Agent's
Option in full and closed the Offering in three tranches for gross
proceeds of approximately $28 million.
- On March 10, 2014, we announced the appointment of James A.
Currie as our Chief Operating Officer who will lead the development
of the high-grade gold Brucejack Project into production as an
underground mine and the promotion of Joseph J. Ovsenek, Chief
Development Officer, to Executive Vice President.
- Working capital at March 31, 2014 was $28.1 million plus
pending gold sale receipts from the 2013 Valley of the Kings Bulk
Sample Program.
- Subsequent to the end of the quarter, on April 16, 2014, we
announced, among other things, that we expected to file our
Environmental Assessment Certificate application ("EAC
application") this quarter once we receive the final Application
Information Requirements from the British Columbia Environmental
Assessment Office ("BCEAO"). We also announced that the 1,000
tonnes of bagged material from the 2013 Valley of the Kings
exploration program was processed at the Contact Mill in Montana
and produced gravity and flotation concentrates containing
approximately 3,120 ounces of gold, with final gold production
subject to remaining assays and final establishment of weights and
assays and settlement.
Brucejack Project Permitting
On May 2nd we received the approved Application Information
Requirements from the BCEAO which advances us to the stage of
filing our provincial EAC application for the Brucejack Project. We
are now reviewing and finalizing our EAC application and expect to
file it with the BCEAO this quarter. Once filed, the application
will be evaluated for completeness over a 30-day period by BCEAO
with the involvement of a working group including representatives
of First Nations and local governments and other government
agencies. Once the application has been accepted, the BCEAO has a
maximum of 180 days to complete its review and prepare an
assessment report for a decision by the Minister of Environment and
the Minister of Energy and Mines.
In coordination with the British Columbia provincial permitting
process, the Canadian Environmental Assessment Agency will review
the Environmental Impact Statement ("EIS"), which we will submit
concurrently with the provincial EAC application. Provincial and
federal approval of the EAC application and EIS, respectively,
allow for the issuance of the statutory permits and authorizations
to begin construction of a mine at Brucejack.
Amended Feasibility Study
The June 2013 Feasibility Study for the Brucejack Project is
currently being amended based on the Valley of the Kings December
2013 Mineral Resource estimate using base case metal prices of
$1,100 per ounce gold and $17 per ounce silver and a Canadian:US
Dollar exchange rate of 0.92.
As part of the amendment, we have carried out various trade-off
studies to manage capital costs, including staged development of
the Project. The trade-off study on staged development has been
completed and has shown a nominal difference in capital cost.
Accordingly, Brucejack will be advanced as a 2,700 tonnes per day
mine as previously planned. The amended Brucejack Project
feasibility study is on track for completion in June.
2014 Exploration Program
The 2014 exploration program at Brucejack has been planned with
a focus on continued resource definition in the Valley of the Kings
and includes 15,000 meters of underground infill and step-out
drilling to the east and west. The design of an access ramp from
the 1345-meter level access ramp to the 1260-meter level has been
finalized and a drill has been mobilized to site.
A total of 3,120 ounces of gold was produced from processing
1,000 tonnes of exploration ore excavated in 2013 (see news release
dated April 16, 2014). 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.
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 quarter ended March 31,
2014 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, 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 31, 2014 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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