Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) ("Pretivm") is pleased
to report the following highlights from the first quarter of 2013
and updates for the Brucejack Project in northern British
Columbia.
First Quarter 2013 Highlights and Significant Events
-- Completed a private placement on February 15, 2013 with a syndicate of
underwriters for 361,300 Investment Tax Credit flow-through common
shares of Pretivm at a price of $13.84 per share and 1,287,250 Canadian
Exploration Expense flow-through common shares of Pretivm at a price of
$12.43 per share for aggregate gross proceeds of $21 million;
-- On March 4, 2013, during the Prospectors & Developers Association of
Canada (PDAC) convention in Toronto, we were awarded the Bill Dennis
Award, which recognizes a Canadian discovery or prospecting success, by
the PDAC for advancing the Valley of the Kings at our high-grade gold
Brucejack Project;
-- Ended the quarter with working capital of $22.5 million;
-- Completed a private placement on April 26, 2013 with Liberty Metals &
Mining Holdings, LLC, a subsidiary of Boston-based Liberty Mutual
Insurance, for 5,780,346 common shares at a price per share of $6.92 for
gross proceeds of approximately $40 million;
-- Announced on May 8, 2013 the completion of the ramp accessing the Valley
of the Kings underground from the historical West Zone underground
workings;
-- On May 8, 2013, we also announced the sample tower and related
equipment, which will be used for the Bulk Sample Program, had been
transported to site along our recently completed all-weather exploration
road. The over 75 kilometer-long exploration road with bridges has
adequate load capacity for 85 tonne class permit vehicles and is
expected to be suitable, with minor upgrades, for development and
production.
2013 Exploration Programs
We have completed the access ramp to the Valley of the Kings
from the West Zone at the targeted 1345-meter level of the 426600
cross-section, and have outlined the Bulk Sample Program and
associated drilling at the Valley of the Kings beginning later this
month (see news release dated May 8, 2013). In addition to
targeting an area of mineralization for the bulk sample, the
current ramp alignment will allow acceleration of production
development as it will be used to provide initial access to the
Valley of the Kings and multiple headings for excavation of the
planned production declines.
Approximately 15,000 meters of underground drilling will be
completed, in support of the Bulk Sample Program, at 7.5-meter and
15-meter centres along 120 meters of strike length and at 15- meter
centres vertically for 60 meters above and 60 meters below the
1345-meter level of the Valley of the Kings. We will develop and
install supporting infrastructure, cross cut the Valley of the
Kings along section 426600, develop the north drill drift and
commence the underground drill program later this month. The drill
program will commence prior to excavating the bulk sample and run
concurrently with the excavation of the bulk sample.
Strathcona Mineral Services Ltd. of Toronto has been engaged as
the independent Qualified Person to oversee and report on the
10,000-tonne bulk sample from the Valley of the Kings. Excavation
of the bulk sample is scheduled to begin in early June. Planning is
continuing with Strathcona Mineral Services on the work required to
be completed prior to excavating the bulk sample, the procedures
for excavating the bulk sample and the sampling protocols. The
final report on the bulk sample is expected later in the year after
the compilation of all data.
Feasibility Study
A feasibility study on the high-grade gold opportunity at
Brucejack is ongoing, and mine planning is now well underway based
on the November 20, 2012 Mineral Resource estimate (see news
release dated November 20, 2012.) The Brucejack feasibility study
is being advanced with an operating rate of 2,700 tonnes per day,
with long-hole stoping and cemented paste backfill chosen for the
mining method. Stopes will be mined using a combination of
longitudinal and transverse mining, depending on zone width and
orientation. Cemented paste tailings will be prepared in a paste
plant located on surface and then pumped underground for
distribution to the stopes.
As part of the feasibility study, we have completed locked cycle
metallurgical testwork. The average locked cycle recoveries for
combined gravity and flotation for the Valley of the Kings
composites were 98.3% for gold and 92.5% for silver.
The feasibility study for the Brucejack Project is expected to
be completed in the second quarter of 2013.
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. 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.
Other Developments
During the quarter, we completed a private placement of
flow-through shares for gross proceeds of $21,000,910 (see news
release dated February 15, 2013). Pretivm's working capital as at
March 31, 2013 was $22.5 million.
Subsequent to the end of the quarter, we announced a strategic
investment by Liberty Metals & Mining Holdings LLC, a
subsidiary of Boston-based Liberty Mutual Insurance, and completed
a private placement of 5,780,346 common shares at a price of $6.92
per common share for gross proceeds of approximately $40,000,000
(see news release dated April 26, 2013).
We believe Pretivm is well-funded to complete the planned
10,000-tonne bulk sample and underground drilling program at the
Valley of the Kings, continue ongoing permitting activities, and
accelerate other activities which will advance the high-grade gold
Valley of the Kings into development.
Pretivm's unaudited interim consolidated financial statements
and Management Discussion and Analysis for the three months ended
March 31, 2013 will be available on SEDAR and Pretivm's website
www.pretivm.com.
About Pretivm
Pretivm is creating value through gold at its high-grade gold
Brucejack Project, located in northern British Columbia. Brucejack
hosts a major undeveloped high-grade gold resource and
mineralization remains open along strike and at depth. A
feasibility study for a high-grade underground mine in Brucejack's
Valley of the Kings is underway and expected this quarter.
(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
our planned exploration and development activities, the adequacy of
Pretivm's financial resources, the estimation of mineral resources,
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.
The TSX has neither approved nor 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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