Pretium Resources Inc: Continued Robust Economics of Brucejack Mine
Confirmed with Updated Mineral Reserve and Resource, 14-Year Mine
Plan
Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”)
announces an updated Mineral Reserve (the “2019 Mineral Reserve”)
and Mineral Resource (the “2019 Mineral Resource”) and Life of Mine
Plan (collectively, the “2019 Updates”) for the Brucejack Mine
(“Brucejack”), which highlight the continued robust economics of
the low-cost, long-life operation.
The 2019 Updates will be detailed in a National
Instrument 43-101 Technical Report (the “2019 Report”) prepared by
Tetra Tech. The 2019 Report updates the operating parameters
contemplated in the Brucejack Feasibility Study entitled
“Feasibility Study and Technical Report Update on the Brucejack
Project, Stewart, BC” with an effective date of June 19, 2014 (the
“2014 Report”) before the mine was constructed and operating, and
confirms Brucejack as a low-cost, high-grade gold producer.
The 2019 Report will be filed in Canada under the Company’s profile
on SEDAR at www.sedar.com and in the United States on the EDGAR
section of the Securities and Exchange Commission (“SEC”) website
at www.sec.gov, within the coming weeks.
All dollar amounts are expressed in, and
references to “$” refer to, United States dollars unless otherwise
noted. References to “C$” refer to Canadian dollars.“Since
achieving production at Brucejack we have processed over 1.5
million tonnes of ore and produced over 500,000 ounces of gold,
providing us a solid foundation of operating experience and key
metrics to update the life of mine plan and outlook for the mine,”
said Joseph Ovsenek, President and CEO of Pretivm. “At $1,300
gold, Brucejack now has an estimated after-tax net present value at
a 5% discount rate of $2.59 billion over a 14-year mine life. This
is a significant increase from the 2017 estimated net present value
at a 5% discount rate of $2.10 billion. With Brucejack as our
foundation and with our considerable growth profile, Pretivm is
well-positioned as a profitable gold producer.”
Summary of 2019 Updates
The updated Life of Mine (“LOM”) plan highlights
Brucejack’s low-cost, long life, with the Brucejack Mineral Reserve
grade more accurately accounting for internal dilution from
transverse longhole stoping.
- 2019 Brucejack Mine Estimated Total Life of Mine Plan (Valley
of the Kings and West Zone)• Average annual production of over
520,000 ounces of gold over the first 5 years with average annual
cash flow of $350 million (post tax).• Average annual production of
over 525,000 ounces of gold over the first 10 years and over
440,000 ounces of gold over 14-year mine life.• Average operating
costs of $166/tonne milled over the first 10 years and average LOM
operating costs of $168/tonne milled.• At the mine level, average
sustaining costs of $502/ounce of gold sold over the first 10 years
and average LOM sustaining costs of $502/ounce.• At the corporate
level, average All-in Sustaining Costs (“AISC”) of $535/ounce of
gold sold over the first 10 years and average LOM AISC of
$539/ounce.• After tax net present value (“NPV”) at a 5% discount
of $2.59 billion ($3.6 billion pre-tax) at $1,300/ounce gold,
$16.9/ounce silver and exchange rate of US$0.775/C$1.00.
- 2019 Brucejack Mine Total Proven and Probable Mineral Reserve
Estimate• 6.4 million ounces of gold (16.0 million tonnes grading
12.6 grams of gold per tonne).• The West Zone Mineral Reserves were
not updated.• Excludes all Mineral Reserve material mined prior to
January 1, 2019.
- 2019 Valley of the Kings Proven and Probable Mineral Reserve
Estimate• 5.8 million ounces of gold (13.1 million tonnes grading
13.8 grams of gold per tonne).• Proven Mineral Reserves of 700,000
ounces of gold (2.0 million tonnes grading 11.2 grams of gold per
tonne).• Probable Mineral Reserves of 5.1 million ounces of gold
(11.1 million tonnes grading 14.3 grams of gold per tonne).•
Excludes all Mineral Reserve material mined prior to January 1,
2019.
2019 Brucejack Mine
Economics
Table 1: Summary of Brucejack Economic Results by Metal
Price
|
Low Case |
Base Case |
High Case |
Gold Price ($/ounce) |
$1,100 |
$1,300 |
$1,500 |
Silver Price ($/ounce) |
$14.30 |
$16.90 |
$19.50 |
Net Cash Flow ($) |
$3.62 billion (pre-tax)$2.63 billion (post-tax) |
$4.87 billion (pre-tax)$3.43 billion (post-tax) |
$6.13 billion (pre-tax)$4.22 billion (post-tax) |
Net Present Value(1)(5.0% discount) ($) |
$2.67 billion (pre-tax)$1.98 billion (post-tax) |
$3.60 billion (pre-tax)$2.59 billion (post-tax) |
$4.54 billion (pre-tax)$3.18 billion (post-tax) |
Exchange Rate (US$:C$) |
0.775 |
0.775 |
0.775 |
(1) NPV is discounted to January 2019.
Summary of 2019 Updates Compared to Prior
The 2019 Updates are based on the six quarters
of mining operations at Brucejack since commercial production
commenced in July 2017. The Valley of the Kings Proven and
Probable Mineral Reserve gold grade has been decreased from 16.1
grams per tonne to 13.8 grams per tonne (a 14% decrease) to account
for more internal waste than was anticipated in the Company’s 2016
Mineral Reserve update (see News Release dated December 15, 2016).
All estimated costs have been updated with actual costs from
2018. Areas of cost increase include labour, environmental
compliance and snow removal. The Net Present Value increase
of 23% is attributable to the increase in production from 2,700
tonnes per day to 3,800 tonnes per day.
A comparison of the main parameters of the 2019
Report and prior information is summarized below in Table 2.
Table 2: Comparison of Main Parameters
of 2019 Report to Prior
|
2019 Report |
2014 Report, 2016Mineral Reserve and2017
Economics(3)Updates |
Operating Rate (tonnes/day) |
3,800 |
2,700 |
Mine Life (years) |
14 |
18 |
Proven and Probable Mineral Reserve Gold Grade
(g/t) |
12.6 |
14.4(1) |
Recoveries Gold/Silver (%) |
96.5/87.9 |
96.7/90.0 |
LOM Average Annual Gold Production (‘000
ounces) |
441 |
404 |
LOM Average Operating Costs ($/t) |
CAD$217 |
CAD$163 |
LOM Average Mine Site AISC(4) ($/ounce gold
sold) |
$502 |
$448 |
LOM Average AISC(2,4) ($/ounce gold sold) |
$539 |
N/A |
USD:CAD Exchange Rate |
0.775 |
0.92 |
NPV5
Pre-Tax/Post Tax ($’000,000) |
$3,602/$2,587 ($1,300 Au/$16.90 Ag) |
$3,210/$2,097 ($1,300 Au/$16.50 Ag) |
NPV5
Pre-Tax/Post Tax ($’000,000) |
$2,707/$2,009 ($1,100 Au/$16.90 Ag) |
$2,250/$1,450 ($1,100 Au/$14.00) |
(1) The Mineral Reserves in the 2014 Report were
updated for the Valley of the Kings in December 2016 (see News
Release December 15, 2016). The 2016 Proven and Probable
Mineral Reserve grade for Brucejack (Valley of the Kings and West
Zone) was 14.4 g/t Au.(2) 2019 LOM AISC includes Corporate general
and administrative (“G&A”) costs of $37/ounce not included in
the 2014 Report.(3) The Mine Economics in the 2014 Report were
updated in February 2017 (see News Release dated February 3, 2017).
(4) Mine site AISC excludes 3,800 tpd expansion capital.
2019 Brucejack Mineral Reserve
Brucejack Mine Total Mineral Reserve
The updated Mineral Reserve estimates by zone and Mineral
Reserve category are summarized below in Table 3. The 2019
Updates include Mineral Reserve updates for the Valley of the
Kings. The West Zone Mineral Reserve was not updated.
Table 3: 2019 Brucejack Mine Total Mineral
Reserve(1,2)
Zone |
OreTonnes(Mt) |
Grade |
Contained Metal |
|
Au (g/t) |
Ag (g/t) |
Au(Moz) |
Ag(Moz) |
|
|
Valley of the Kings Zone |
Proven |
2.0 |
11.2 |
11.8 |
0.7 |
0.7 |
|
Probable |
11.1 |
14.3 |
10.5 |
5.1 |
3.8 |
|
Total |
13.1 |
13.8 |
10.7 |
5.8 |
4.5 |
|
West Zone |
Proven |
1.4 |
7.2 |
383.0 |
0.3 |
17.4 |
|
Probable |
1.5 |
6.5 |
181.0 |
0.3 |
8.6 |
|
Total |
2.9 |
6.9 |
278.5 |
0.6 |
26.0 |
|
Total Mine |
Proven |
3.4 |
9.5 |
166.5 |
1.0 |
18.1 |
|
Probable |
12.6 |
13.4 |
30.8 |
5.4 |
12.4 |
|
Total |
16.0 |
12.6 |
59.3 |
6.4 |
30.5 |
|
|
|
|
|
|
|
|
|
(1) Mineral Reserves exclude all Mineral Reserve material mined
prior to January 1, 2019.(2) Valley of the Kings Mineral Reserves
based on $185/t net smelter return (“NSR”) cut-off grade, $1,200/oz
gold, $15.60/oz silver, C$:US$ exchange rate of 1.00:0.78.
Validation of 2019 Mineral Reserve to
Actual Mined and Milled Production in 2018
The 2019 Mineral Reserve process was validated
by evaluating the complete Mineral Reserve process on the
undepleted 2019 Mineral Resource model, creating mining shapes as
if no mining had occurred. These generated shapes are referred to
as 2019 Reserve Validation shapes. The 2019 Mineral Resource model
that was contained within the validation shapes that are broadly
coincident with the 2018 actual stope and development ore positions
were compared to the 2018 milled and mined results. Applicable
validation shapes were determined by the use of Cavity Monitoring
Systems (“CMS”) scans of the mined material for 2018. Table 4 below
summarizes the comparison.
Table 4: Validation of 2019 Brucejack
Mine Mineral Reserve model vs 2018 Actual Production
Year |
Tonnes(000’s) |
Gold Grade(g/t) |
ContainedGold Ounces(000’s) |
TonnesDifference |
OunceDifference |
2018 Actuals |
1,006 |
11.9 |
385 |
- |
- |
2019 Reserve Validation |
801 |
15.4 |
397 |
20% |
3% |
The tonnage from the validation shapes is 20%
less than actual mined while ounces produced are comparable. The
primary cause for this is the mining of material outside of the
2019 validation shapes that were originally part of the 2016
Mineral Reserves. This additional material is not encompassed
within the validation shapes and therefore would not be a part of
the 2019 Reserves if these areas were to be mined again. The
inclusion of uneconomic material (waste) within the mined stopes
resulted in mining more tonnage at a lower grade in 2018 than would
have been mined based on the 2019 Reserve validation
shapes.Mining and Processing
Brucejack is a high-grade underground mining
operation using the long-hole stoping mining method and cemented
paste backfill. The Valley of the Kings, the higher-grade,
primary targeted deposit, has been developed first; the lower-grade
West Zone will be developed in the second half of Brucejack’s
14-year mine life. The mine is planned to increase the
processing rate from 2,700 tonnes per day to 3,800 tonne per day by
year-end 2019 and mine a total of 15.8 million tonnes of ore for
the 14 years at an average mill feed grade of 12.6 grams gold per
tonne.
Mineral processing at the current operation uses
conventional gravity concentration and sulphide flotation,
producing gold-silver doré and gold-silver flotation
concentrate. The mill will be upgraded to use the same
process flowsheet at an increased mill feed rate of 3,800 tonne per
day. Predicted metallurgical recoveries over the life of mine
average 96.5% and 87.4% for gold and silver, respectively. A
total of 6.2 million ounces of gold and 26.0 million ounces of
silver are estimated to be produced over the remaining mine life of
Brucejack. Projected production and processing is summarized in
Table 5 below.
Table 5: Life of Mine Projected
Production and Processing Summary(1)
Years |
Tonnage(2)(t) |
Development Meters(2) (m) |
GoldGrade(g/t)(3) |
SilverGrade(g/t) |
GoldProduction('000 ounces) |
SilverProduction('000 ounces) |
1 |
1,235,000 |
10,924 |
10.6 |
11.2 |
407 |
392 |
2 |
1,371,000 |
10,950 |
12.0 |
11.3 |
512 |
445 |
3 |
1,383,000 |
8,550 |
13.0 |
11.7 |
563 |
462 |
4 |
1,386,000 |
8,550 |
13.6 |
10.2 |
592 |
404 |
5 |
1,387,000 |
8,550 |
12.3 |
17.5 |
533 |
663 |
6 |
1,388,000 |
7,350 |
13.5 |
20.7 |
586 |
779 |
7 |
1,388,000 |
7,240 |
14.3 |
52.1 |
613 |
1,993 |
8 |
1,380,000 |
4,370 |
13.9 |
93.7 |
594 |
3,637 |
9 |
1,180,000 |
3,530 |
12.6 |
85.6 |
457 |
2,832 |
10 |
1,180,000 |
1,010 |
12.0 |
130.3 |
436 |
4,371 |
11 |
902,000 |
1,320 |
10.8 |
87.7 |
299 |
2,220 |
12 |
826,000 |
920 |
14.4 |
119.3 |
366 |
2,793 |
13 |
571,000 |
250 |
9.8 |
220.1 |
171 |
3,634 |
14 |
177,000 |
100 |
7.4 |
269.4 |
40 |
1,387 |
Life of Mine |
15,754,000 |
73,610 |
12.6 |
58.4 |
6,169 |
26,012 |
(1) LOM begins on January 1, 2019. The Mineral Reserve excludes
all Mineral Reserve material mined prior to January 1, 2019.(2)
Tonnes are rounded to nearest thousands. Development meters
are rounded to the nearest tens.(3) Gold grade is estimated within
a tolerance range of +/- 10% for the Proven Mineral Reserve, and
+/- 15% for the Probable Mineral Reserve in the remaining years of
production.
Capital and Operating Costs
The capital cost for the mine throughput upgrade
to 3,800 tonnes per day is estimated at $22.5 million over the next
three years, including a contingency of $1.9 million. Capital
costs are summarized in Table 6 below.
Table 6: 3,800 tpd Expansion Capital Costs
Summary (1)
|
($ million) |
Mine Underground |
2.4 |
Process and Infrastructure |
13.9 |
Total Direct Costs |
16.3 |
Indirect Costs (2) |
2.4 |
Contingency (2) |
3.8 |
Total Capital Cost |
22.5 |
(1) Year 2019-2020 capital cost expenditure for
expansion of mine, process and infrastructure, including mine
throughput expansion related costs. (2) Mill expansion related
indirect costs and contingency only.
The total sustaining capital cost for the
remainder of the LOM at Brucejack is estimated at $200.8
million. Sustaining capital costs are summarized in the Table
7 below.
Table 7: Sustaining Capital Costs
Summary
|
($ million) |
Mining |
51.6 |
Processing |
33.5 |
Site Services and Surface Maintenance |
115.7 |
Total Sustaining Capital Cost |
200.8 |
Average LOM operating cost is estimated at $168
per tonne milled. Operating costs are summarized in Table 8
below.
Table 8: Operating Costs
Summary
|
($/tonne) |
Mining |
74 |
Processing |
22 |
Mine General and Administrative |
36 |
Surface Services and Others |
36 |
Total Operating Cost |
168 |
All-in sustaining cash costs, which include
by-product cash costs, sustaining capital, exploration expense and
reclamation cost accretion are summarized in Table 9 below.
Table 9: All-In Sustaining Costs Life of
Mine
|
($ million, except for costper ounce) |
Total Cash Costs(1) |
$2,835 |
Reclamation Cost Accretion |
$29 |
Sustaining Capital Expenditure |
$201 |
Mine Site Sustaining Costs(2) |
$3,065 |
Gold Sales (ounces) |
6.1 ounces |
Mine Site Sustaining Cost per ounce(3) |
$502/ounce |
Corporate G&A Costs |
$37/ounce |
All-in Sustaining Costs |
$539/ounce |
(1) Net of silver credits at Base Case silver price of
$16.90/ounce.(2) Excludes 3,800 tpd Expansion Capital.(3) Includes
offsite shipping, treatment, refining charges and royalties.
2019 Mineral Resource
Brucejack Mineral Resource
The 2019 Mineral Resource estimate incorporates
76,697 meters of infill drilling in 1,275 drill holes and 18,250
meters of mapped underground development completed in the Valley of
the Kings Zone since the 2016 Mineral Resource estimate (see News
Release dated July 15, 2016). The updated Mineral Resource
reported by zone and confidence category is summarized in Table 10
below. The Valley of the Kings Mineral Resource was updated
in 2019, but only in an area where new data was available; the West
Zone Mineral Resource was not updated.
Table 10: Brucejack Mineral Resource Estimate
(1,2,3,4,5,6)
Zone |
ConfidenceCategory |
OreTonnes(Mt) |
Grade |
Contained Metal |
|
Au (g/t) |
Ag (g/t) |
Au(Moz) |
Ag(Moz) |
|
|
Valley of the Kings Zone |
Measured |
1.8 |
17.15 |
16.4 |
1.0 |
1.0 |
|
Indicated |
11.9 |
17.15 |
15.4 |
6.6 |
5.9 |
|
Total M+I |
13.7 |
17.15 |
15.5 |
7.6 |
6.8 |
|
Inferred |
3.8 |
17.7 |
19.4 |
2.2 |
2.4 |
|
West Zone |
Measured |
2.4 |
5.85 |
347 |
0.5 |
26.8 |
|
Indicated |
2.5 |
5.86 |
190 |
0.5 |
15.1 |
|
Total M+I |
4.9 |
5.85 |
267 |
0.9 |
41.9 |
|
Inferred |
4.0 |
6.4 |
82 |
0.8 |
10.6 |
|
Total Mine |
Measured |
4.2 |
10.71 |
205 |
1.5 |
27.8 |
|
Indicated |
14.4 |
15.19 |
45.6 |
7.1 |
21.0 |
|
Total M+I |
18.6 |
14.2 |
81.6 |
8.5 |
48.7 |
|
Inferred |
7.8 |
12.0 |
51.3 |
3.0 |
13.0 |
|
(1) Mineral Resources are reported inclusive of Mineral
Reserves.
(2) Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability. The estimate of Mineral Resources
may be materially affected by environmental, permitting, legal,
marketing, or other relevant issues. The Mineral Resources in this
news release were estimated in accordance with the Canadian
Institute of Mining, Metallurgy and Petroleum (“CIM”), CIM
Standards on Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council.
(3) The quantity and grade of reported Inferred Mineral
Resources in this estimation are uncertain in nature and there has
been insufficient exploration to define these Inferred Mineral
Resources as an Indicated or Measured Mineral Resource. It is
uncertain if further exploration will result in upgrading Inferred
Mineral Resources to an Indicated or Measured Mineral Resource
category.
(4) Tonnes, grade, and contained metal figures in totals may
differ due to rounding.
(5) For comparative purposes only, the Brucejack Mineral
Resource is reported at a gold equivalent value defined as AuEq =
Au + Ag/53.
(6) Mineral Resources exclude all Mineral Resource material
mined prior to January 1, 2019.
The 2019 Mineral Resource estimate for the
Valley of the Kings Zone differs from the 2016 Mineral Resource
estimate in that there are significantly more drill holes used in
the estimation of the model, the classification has been adjusted
to allow for the change in confidence as a result of the new
information, the estimation parameters have been adjusted to allow
greater local accuracy of the grade estimates (based on validation
of the model estimates against production information), and
production volumes have been removed for all production prior to
January 1, 2019. This has resulted in a reduction in the
number of tonnes in the Measured and Indicated Resource
categories. The 2019 Measured and Indicated Resource for the
Valley of the Kings Zone is 13.7 million tonnes at 17.2 g/t Au
compared to 16.4 million tonnes at 17.2 g/t Au in
2016.Independent Qualified Persons
The following Qualified Persons as defined by NI
43-101 are independent of Pretivm and responsible for the 2019
Report, and each has reviewed, approved and verified the scientific
and technical information contained in this news release relating
to his or her respective scope of responsibility, as
applicable:
Qualified Person |
Scope of Responsibility |
Ivor W.O. Jones, M.Sc., P.Geo., FAusIMM (CP) |
Geology and Mineral Resources |
Mark Horan, P.Eng, MSc.Tetra Tech |
Mineral Reserves, Mining Methods; Underground Infrastructure; Paste
Backfill Distribution; Mining Operating Cost Estimate; Financial
Analysis |
John Huang, Ph.D, P.Eng.Tetra Tech |
Metallurgy and Recovery Methods; Market Studies; Process, G&A
and Site Services Operating Cost Estimates |
Hassan Ghaffari, P.Eng., M.A.Sc. Tetra Tech |
Surface Infrastructure; Capital Cost Estimate |
Maritz Rykaart, PhD, P.Eng.SRK |
Waste Rock and Tailings Storage Facility |
Rolf Schmitt, M.Sc., P.Geo.ERM |
Aspects of environmental, social, community studies, and
permitting |
Hassan Ghaffari, P.Eng., M.A.Sc.Tetra Tech |
Capital Cost Estimate |
Alison Shaw, Ph.D., P.Geo.Lorax |
Geochemistry, Water Quality |
Hamish Weatherly, M.Sc., P.Geo. BGC Engineering Inc. |
Water Management |
Trevor Crozier, M.Eng., P.Eng. BGC Engineering Inc. |
Hydrogeology |
Cathy Schmid, M.Sc., P.Eng.BGC Engineering Inc. |
Underground Mine Geotechnical |
Ed Carey, P.EngBGC Engineering Inc. |
Site Geotechnical |
Next Steps
Longitudinal Mining Test Stopes Based on
Refined Geological Understanding
The plan for underground development and mining
at the Valley of the Kings was based on the initial understanding
that the high-grade gold was carried throughout the broad quartz
stockwork running nominally east-west. Consequently, the 2014
Report selected transverse longhole stoping as the mining method
for the Valley of the Kings, which provided for stopes up to 40
meters wide to be mined across the width of the quartz stockwork
corridors.
The experience gained from over six quarters of
mining at Brucejack and the Valley of the Kings has led to a
refined understanding of the geology and controls on the gold
mineralization. The high-grade gold mineralization is now
understood to be carried in multiple zones of between 10 to 15
meters wide running nominally east-west within the broader quartz
stockwork at the Valley of the Kings.
Based on improved understanding of the geology
and controls on the gold mineralization longitudinal longhole
stoping, mining along the direction of the corridors of high-grade
gold mineralization, may be a better method of mining.
Longitudinal longhole stoping will be tested this quarter and is
expected to reduce the amount of internal waste within stopes,
potentially increasing the average stope grade, and reducing the
amount of underground development. If successful, an updated
Mineral Reserve and life of mine plan will be prepared for yearend
with longitudinal longhole stoping included in the mining method
and incorporating the reserve expansion drilling from this year’s
drill program.
Production and Cash Flows
Over the next five years, estimated gold
production of over 2.6 million ounces of gold will generate cash
flows of $1.74 billion, which are more than sufficient to pay down
the scheduled debt maturities of approximately $580 million.
Capital allocation strategy for 2019 is focused on organic growth
and paying down debt. Capital allocation for 2020 and beyond
will be addressed later this year.
Scientific and technical information in this
news release not set out in the 2019 Report has been reviewed,
approved and verified by Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat,
Pretivm’s Vice President, Geology and Chief Geologist and Nicolas
Scarcelli-Casciola, B.A.Sc., P.Eng., Pretivm’s Mine Planning
Manager, each of whom is a Qualified Person as defined in NI
43-101.
Reserve and Resource Estimate Update
Webcast and Conference Call
Webcast and conference call details:
|
Thursday, April 4, 2019 at 8:00 am EDT (5:00 am PDT) |
|
Webcast |
www.pretivm.com |
|
Toll Free (North America) |
1-800-319-4610 |
|
International and Vancouver |
604-638-5340 |
About Pretivm
Pretivm is a low-cost intermediate gold producer
with the high-grade gold underground Brucejack Mine in northern
British Columbia.
For further information contact: |
|
|
|
Joseph Ovsenek |
Troy Shultz |
President & CEO |
Manager, Investor Relations
& |
|
Corporate Communications |
Pretium Resources Inc. Suite 2300, Four Bentall Centre, 1055
Dunsmuir Street PO Box 49334 Vancouver, BC V7X 1L4 (604) 558-1784
invest@pretivm.com (SEDAR filings: Pretium Resources Inc.)
Forward-Looking Statements
This news release contains “forward-looking
information”, “forward looking statements”, “future oriented
financial information” and/or “financial outlooks” within the
meaning of applicable Canadian and United States securities
legislation (collectively herein referred to as “forward-looking
statements” or “forward-looking information”). The purpose of
disclosing future oriented financial information and financial
outlooks is to provide a general overview of management’s
expectations regarding the anticipated results of operations and
costs thereof and readers are cautioned that future oriented
financial information and financial outlook may not be appropriate
for other purposes. Wherever possible, words such as “plans”,
“expects”, “guidance”, “projects”, “assumes”, “budget”, “strategy”,
“scheduled”, “estimates”, “forecasts”, “anticipates”, “believes”,
“intends”, “modeled”, “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. 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 statements. Forward-looking information may
include, but is not limited to, information with respect to: the
estimation of Mineral Reserves and Resources, including the 2019
Updates; realization of Mineral Reserve and Resource estimates; our
estimated life of mine and life of mine plan for the Brucejack
Mine; production and processing estimates; capital and operating
cost estimates and timing thereof; estimated economic results of
the Brucejack Mine, including net cash flow and net present value;
the expected grade of gold produced; predicted metallurgical
recoveries for gold and silver; geological and mineralization
interpretations; the ramp-up of the Brucejack Mine to 3,800 tonnes
per day production rate, including capital modifications and
upgrades, underground development, and estimated expenditures and
timelines in connection therewith; our planned mining (including
mining methods), expansion, exploration and development activities,
including our infill and expansion drill programs, and the
costs and timing thereof; timelines and similar statements relating
to the economic viability of the Brucejack Mine, including mine
life, total tonnes mined and processed and mining operations;
production and cost guidance; our grade control program; grade
reconciliation, updated geological interpretation and mining
initiatives with respect to the Brucejack Mine; our operational
strategy; our future operational and financial results, including
estimated cash flows, and the timing thereof; payment of our debt
and other obligations, including the source of funds and timing
thereof; the future price of gold and silver; our liquidity and the
adequacy of our financial resources; our intentions with respect to
our capital resources; results of future exploration and drilling;
timing, receipt, and anticipated effects of, and anticipated
capital costs in connection with approvals, consents and permits
under applicable legislation; litigation matters; environmental
matters; our effective tax rate and the recognition of our
previously unrecognized income tax attributes; and statements
regarding USD cash flows, currency fluctuations and the recurrence
of foreign currency translation adjustments. Statements
concerning Mineral Resource estimates may also be deemed to
constitute forward-looking statements. Forward-looking statements
are subject to a variety of known and unknown risks, uncertainties
and other factors that could cause actual events or results to
materially differ from those expressed or implied by the
forward-looking statements, including, without limitation, those
related to: the accuracy of our Mineral Resource and Reserve
estimates (including with respect to size, grade and
recoverability) and the geological, operational and price
assumptions on which they are based; uncertainties relating to
inferred Mineral Resources being converted into Measured or
Indicated Mineral Resources; commodity price fluctuations,
including gold price volatility; general economic conditions; the
inherent risk in the mining industry; significant governmental
regulations; currency fluctuations, and such other risks as are
identified in Pretivm’s Annual Information Form dated March 28,
2019, Form 40-F dated March 28, 2019, Management’s Discussion and
Analysis for the years ended December 31, 2018 and 2017
(“MD&A”) and other disclosure documents as filed in Canada on
SEDAR at www.sedar.com and in the United States through EDGAR at
the SEC’s website at www.sec.gov (collectively, the “Pretivm
Disclosure Documents”). Our forward-looking statements are based on
the assumptions, beliefs, expectations and opinions of management
on the date the statements are made, many of which may be difficult
to predict and beyond our control. In connection with the
forward-looking statements contained in this news release, we have
made certain assumptions about our business, including about our
exploration, development and production activities, and the
results, costs and timing thereof; timing and receipt of approvals,
consents and permits under applicable legislation; the
geopolitical, economic, permitting and legal climate that we
operate in; the price of gold and other commodities; exchange
rates; market competition; the adequacy of our financial resources,
and such other material assumptions as are identified in the other
Pretivm Disclosure Documents. We have also assumed that no
significant events will occur outside of our normal course of
business. Although we believe that the assumptions inherent in the
forward-looking statements are reasonable as of the date of this
news release, forward-looking statements are not guarantees of
future performance and, accordingly, undue reliance should not be
put on such statements due to the inherent uncertainty therein. We
do not assume any obligation to update forward-looking statements,
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 statements. Neither the TSX nor the NYSE has
approved or disapproved of the information contained herein.
Scientific and Technical
Information
This news release uses the terms “Measured
Resources”, “Indicated Resources” (together “M&I”) and
“Inferred Resources”. Although these terms are recognized and
required by Canadian regulations (under NI 43-101), the SEC does
not recognize such terms. Mineral Resources which are not Mineral
Reserves do not have demonstrated economic viability. The estimate
of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing, or
other relevant issues. There is no guarantee that all or any
part of the Mineral Resource will be converted into Mineral
Reserves. In addition, “Inferred Resources” have a great amount of
uncertainty as to their existence, and economic and legal
feasibility. It cannot be assumed that all or any part of an
Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or pre-feasibility
studies, or economic studies, except for a Preliminary Assessment
as defined under NI 43-101. Investors are cautioned not to assume
that part or all of an Inferred Resource exists or is economically
or legally mineable.
Cautionary Note to United States
Investors
Technical disclosure contained in this news
release has not been prepared in accordance with the requirements
of United States securities laws and uses terms that comply with
reporting standards in Canada with certain estimates prepared in
accordance with NI 43-101. NI 43-101 is a rule developed by
the Canadian Securities Administrators that establishes standards
for all public disclosure an issuer makes of scientific and
technical information concerning mineral projects. Unless
otherwise indicated, all Mineral Reserve and Mineral Resource
estimates contained in this news release have been prepared in
accordance with NI 43-101 and the Canadian Institute of Mining,
Metallurgy and Petroleum Classification System. Canadian standards,
including NI 43-101, differ significantly from the requirements of
the SEC under its Industry Guide 7 (“Guide 7”), and Mineral Reserve
and Resource information contained in this news release may not be
comparable to similar information disclosed by U.S. companies
reporting pursuant to Guide 7. In particular, and without
limiting the generality of the foregoing, the term “resource” does
not equate to the term “reserves”. Under Guide 7, mineralization
may not be classified as a “reserve” unless the determination has
been made that the mineralization could be economically and legally
produced or extracted at the time the reserve determination is made
and volumes that are not “reserves’ should not be disclosed. Among
other things, all necessary permits would be required to be in hand
or issuance imminent in order to classify mineralized material as
reserves under Guide 7. Accordingly, Mineral Reserves estimates
included in this news release may not qualify as “reserves” under
Guide 7. Guide 7’s current disclosure standards normally do not
permit the inclusion of information concerning “Measured Mineral
Resources”, “Indicated Mineral Resources” or “Inferred Mineral
Resources” or other descriptions of the amount of mineralization in
mineral deposits that do not constitute “reserves” by Guide 7
standards in documents filed with the SEC. United States investors
should also understand that “Inferred Mineral Resources” have a
great amount of uncertainty as to their existence and great
uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of “Mineral Resources”, “Indicated
Mineral Resources” or “Inferred Mineral Resource” will ever be
upgraded to a higher category. Under Canadian rules,
estimated “Inferred Mineral Resources” may not form the basis of
feasibility or pre-feasibility studies except in rare cases.
Investors are cautioned not to assume that all or any part of the
“Mineral Resources”, “Measured Mineral Resources”, “Indicated
Mineral Resources” or “Inferred Mineral Resource” reported in this
AIF exists or is economically or legally mineable. Disclosure
of “contained ounces” in a resource is permitted disclosure under
Canadian regulations; however, Guide 7 normally only permits
issuers to report mineralization that does not constitute
“reserves” by Guide 7 standards as in-place tonnage and grade
without reference to unit measures. Investors are specifically
cautioned not to assume that all or any part of the mineral
deposits in these categories will ever be converted into Guide
7-defined mineral reserves. In addition, the definitions of “Proven
Mineral Reserves” and “Probable Mineral Reserves” under reporting
standards in Canada differ in certain respects from the standards
of Guide 7. Accordingly, information concerning mineral deposits
set forth herein may not be comparable with information made public
by companies that report in accordance with Guide 7.
Non-IFRS Financial Performance
Measures
The Company has included certain non-IFRS
measures in this news release. Refer to the Company’s MD&A for
an explanation and discussion of non-IFRS measures. The Company
believes that these measures, in addition to measures prepared in
accordance with IFRS, provide investors an improved ability to
evaluate the underlying performance of the Company and to compare
it to information reported by other companies. Management uses
these measures for internal valuation for the period and to assist
with planning and forecasting of future operations. The non-IFRS
measures are intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with International Financial
Reporting IFRS. These measures do not have any standardized meaning
prescribed under IFRS, and therefore may not be comparable to
similar measures presented by other issuers. The presentation of
non-IFRS measures is not meant to be a substitute for the
information presented in accordance with IFRS. The non-IFRS
financial measures included in this news release include: total
cash costs, AISC and AISC per ounce of gold sold. Please refer to
the “Non-IFRS Financial Performance Measures” section of the
Company’s MD&A filed on SEDAR at www.sedar.com and in the
United States through EDGAR at the SEC’s website at www.sec.gov for
a detailed discussion and reconciliation of the non-IFRS measures
to the most directly comparable IFRS measures.
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