Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) ("Pretivm") is pleased
to report the following highlights from the second quarter of 2012
and updates for its Brucejack Project in northern British
Columbia.
Second Quarter 2012 Highlights and Significant Events
-- Announced on April 2, 2012 the adoption of a shareholder rights plan;
-- Announced on April 3, 2012 a high-grade Mineral Resource estimate for
Brucejack's Valley of the Kings and West Zone;
-- Completed a marketed offering of our common shares on May 9, 2012, for
gross proceeds of $80,540,250;
-- Ended the quarter with working capital of $75,731,479;
-- Announced on July 25, 2012 the highest-grading gold intersection
encountered to date at the Brucejack Project, drilled in the Valley of
the Kings, of 0.5 meters with uncut grades of 41,582 grams of gold and
27,725 grams of silver per tonne (1.6 feet averaging 1,212.8 ounces gold
and 808.6 ounces silver per ton).
2012 Exploration
In late February 2012, we began mobilizing drills to our
Brucejack Project to commence the 2012 Brucejack Exploration
Program, with six drills mobilized to site by the end of the first
quarter of 2012. In April 2012, we mobilized a seventh drill to
site. By the end of June 2012, a total of 154 drill holes had been
completed or were in progress comprising approximately 46,845
meters of drilling.
The initial phase of the 2012 Brucejack Exploration Program
consisting of 26,230 meters of drilling in 60 holes was completed
in early June. The primary objective of the initial phase of the
2012 drill program was to increase drill density at the Valley of
the Kings to upgrade Inferred gold resources to the Indicated
resource category in support of the feasibility study underway.
The second phase of the 2012 Brucejack Exploration Program is
currently underway and is focused on high-grade definition drilling
of the shallow high-grade resources at the Valley of the Kings, as
well as testing extensions of the Valley of the Kings and other
high-grade zones.
On July 25, 2012, we announced the highest-grading gold
intersection encountered to date at the Brucejack project, drilled
in the Valley of the Kings. Hole SU-452 intersected 0.5 meters with
uncut grades of 41,582 grams of gold and 27,725 grams of silver per
tonne (1.6 feet averaging 1,212.8 ounces gold and 808.6 ounces
silver per ton), within a three meter intersection with uncut
grades of 8,330 grams of gold and 5,628 grams of silver per tonne
(9.8 feet averaging 243.0 ounces of gold and 164.2 ounces of silver
per ton).
On July 31, 2012, we announced the bonanza-grade interval from
hole SU-452 (including the record intercept) extends over 10
meters, from a downhole depth of 198.79 meters, with an average
grade of 2,393 grams of gold and 1,605 grams of silver per tonne
uncut over 10.71 meters (70.3 ounces gold and 46.8 ounces silver
per ton over 35.1 feet). Hole SU-452 intersected a total of seven
separate intervals grading over 20 grams of gold per tonne,
including 0.65 meters grading 1,130 grams of gold per tonne uncut
from a downhole depth of 150.79 meters. We also announced
intersections grading greater than 1,000 grams of gold per tonne in
four additional drill holes.
We have received the permit required to commence the underground
exploration program at Brucejack. The underground contractor is
mobilizing equipment to site with crews to follow later this month.
The first phase will be to slash out the existing West Zone
underground workings to five-by-five meters down to the 1330 meter
level, a distance of approximately 500 meters. The next phase will
be to advance the decline from the 1330 meter level of the West
Zone to the 1314 meter level in the Valley of the Kings, a distance
of approximately 450 meters. We expect to take an underground bulk
sample in the Valley of the Kings in the first half of 2013.
Resource Estimate
On April 3, 2012, we announced a high-grade Mineral Resource
estimate for the Brucejack Project which was completed by Snowden
Mining Industry Consultants (see Brucejack Project Mineral
Resources Update Technical Report dated April 3, 2012 and filed on
SEDAR on April 30, 2012). High-grade gold resources in the Valley
of the Kings (5.0 g/t gold-equivalent cut-off) now total:
-- 4.9 million ounces of gold in the Indicated Resource category (8.9
million tonnes grading 17.3 grams of gold per tonne); and
-- 10.4 million ounces of gold in the Inferred Resource category (12.7
million tonnes grading 25.5 grams of gold per tonne).
An updated high-grade Mineral Resource estimate to be used as
the basis for feasibility study mine planning will incorporate
drill results from the second phase of the 2012 Brucejack
Exploration Program in addition to the results of the first phase,
which was completed in June 2012. The updated high-grade Mineral
Resource estimate is expected in the third quarter. The feasibility
study is expected to be completed in the first quarter of 2013.
Other Developments
On April 2, 2012, we announced the adoption of a shareholder
rights plan, subject to TSX and shareholder approval, to provide
our Board of Directors and shareholders with sufficient time to
fully consider any unsolicited take-over bid for us, to ensure that
our Board of Directors has sufficient time to explore alternative
transactions that would maximize value for our shareholders, and to
encourage the fair treatment of all of our shareholders.
Subsequently, both our shareholders and the TSX approved the
shareholders rights plan.
During the second quarter, we completed a prospectus offering of
5,554,500 common shares at a price of $14.50 per share for
aggregate gross proceeds of $80.5 million. The gross proceeds of
the offering are to be used to accelerate exploration of the Valley
of the Kings Zone at the Brucejack Project with infill and
expansion drilling.
Pretivm's working capital as at June 30, 2012 was
$75,731,479.
Pretivm's unaudited consolidated financial statements and
Management Discussion and Analysis for the three months ended June
30, 2012 will be available on SEDAR and Pretivm's website
www.pretivm.com.
About Pretivm
Pretivm is creating value through gold at its advanced-staged
exploration projects Brucejack and Snowfield, located in northern
British Columbia. Pretivm is advancing the high-grade, underground
gold opportunity at Brucejack, which hosts a significant
undeveloped high-grade gold resource.
(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
general economic conditions, our planned exploration and
development activities, interpretation of drill results and
geology, grade and continuity, the estimation of mineral resources
and ability to upgrade natural resource estimates and establish
mineral reserves, realization of mineral resource estimates, 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" 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 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 prospectus
supplement to the short form base shelf prospectus dated March 19,
2012 filed on SEDAR at www.sedar.com and in the United States
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.
Contacts: Pretium Resources Inc. Robert Quartermain President
and Chief Executive Officer (604)558-1784 Pretium Resources Inc.
Michelle Romero Corporate Relations Director
(604)558-1784invest@pretivm.com www.pretivm.com
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