Pretium Resources Inc. (TSX:PVG) (NYSE:PVG) (“Pretivm” or the
“Company”) is pleased to report first quarter 2018 production
results and provide an operations update as ramp-up advances at the
high-grade gold Brucejack Mine.
First Quarter 2018 Production
Summary
- 75,689 ounces of gold produced
- 96.8% gold recovery rate
- 261,443 tonnes of ore milled
- 2,905 tonnes per day ore milled
- 10.9 grams per tonne gold mill feed grade for March; average
9.1 grams per tonne gold mill feed grade for the quarter
“Gold production improved steadily through the
first quarter, with 32,910 ounces produced in March. This result is
attributed to the successful implementation of a number of
operational improvement initiatives,” said Pretivm President &
CEO Joseph Ovsenek. “Our grade control program has now been fully
integrated into our mining process and the rate of underground
development has increased to provide for additional stopes in our
inventory. We are focused on continuing to increase grade to the
mill in Q2, and we remain on track to deliver on our H1 2018
production guidance of 150,000 to 200,000 ounces of gold at AISC of
$900-$700 per ounce of gold sold. We are building on our healthy
cash position, and expect to achieve steady-state production by
mid-to-late 2018.”
First Quarter 2018 Monthly
Production
|
GoldProduction(oz) |
GoldGrade(g/t) |
Recovery(%) |
OreMilled(t) |
March |
32,910 |
10.9 |
96.7 |
92,580 |
February |
27,636 |
11.4 |
97.1 |
77,763 |
January |
15,143 |
5.4 |
96.7 |
91,100 |
Q1 2018 |
75,689 |
9.1 |
96.8 |
261,443 |
Grade Control Integration and Improving
Production
The grade control program is a data-driven and
iterative process that is being used to optimize stope shapes
resulting in reduced dilution and optimized grade to the
mill. The program comprises drilling, sampling and local
modelling with improved short-term grade prediction. March
production results reflect the first impact of grade control
integration into the mining process during the month. In the second
quarter, gold production results are expected to continue to
improve with the full integration of the grade control
program.
The absence of operational grade control and
limited stope optionality contributed to low gold production for
the month of January. Gold production subsequently increased
significantly in February with stopes planned for the fourth
quarter 2017 and other higher-grade stopes coming online.
Infill Drilling
As part of the grade control program, infill
drilling is required at 5-meter to 7.5-meter centers to refine
stope location and dimensions prior to mining. Currently, three
diamond drills and one reverse circulation (RC) drill are being
used for grade control drilling, with 11,100 meters completed as of
April 1st.
The RC drill is part of a trial program for
underground drilling. The RC drilling provides a larger sample per
meter and is expected to be faster and more cost effective than
core drilling, which has been used for infill drilling to
date.
Local Grade Control Model
A local grade control model, which is based on
data from drilling, is now being implemented for stope optimisation
in areas of near-term production. The model is informed by
tightly-spaced infill drilling (with areas drilled at 7.5 meters or
better) and has a resolution of approximately 2.5 meters. The local
grade control model is being used for stope shape optimization and
estimating production grade, and will ultimately be used for
medium-term planning for future production areas.
Stope Ring Sampling
Another component of the grade control program,
stope ring sampling, provides grade information on a ring-by-ring
basis to refine the shape of the long-hole stope prior to mining.
Long-hole drill cuttings are collected from each ring within a
stope and assayed. Assayed data from each of the rings is then fed
back into the stope design to refine short-term mine planning.
Mining
To improve access and build stope inventory, the
rate of underground development has been increased to 700 meters
per month, up from the 420 meters considered in the Brucejack
Feasibility Study. The development rate increase began in
January and is expected to remain at an average of 700 meters per
month during the duration of stope inventory build-up in 2018. A
third long-hole drill is now on site to support development and
provide for back-up.
Stope inventory is expected to increase to 10 to
12 stopes. The availability of stopes representing a range of
grades, including multiple higher-grade stopes, allows mining
operations to optimize stope blending and provides alternative
stopes for mining if required. The increased stope inventory will
improve the management of production grades.
2018 Guidance and Mineral Resource estimate
Update
Brucejack Mine is on track to achieve H1 2018
production guidance of 150,000 to 200,000 ounces of gold at an
all-in sustaining cash cost of $900-$700 per ounce of gold
sold. Guidance for H2 2018 is expected to be given at
mid-year with the full integration of local grade control in the
short-term mining cycle and optimal stope availability for
production as the mine approaches steady state.
Annual updating of the Mineral Resource and
Mineral Reserve for the Brucejack Mine will be initiated in the
fall.
Lyle Morgenthaler, B.A.Sc., P.Eng., Chief Mine
Engineer, Pretium Resources Inc. is the Qualified Person (“QP”)
responsible for Brucejack Mine development. Warwick Board,
Ph.D., P.Geo, Pr.Sci.Nat., Vice President, Geology and Chief
Geologist, Pretium Resources Inc. is the QP responsible for the
Brucejack Mine grade control program.
Investor Day Operations Update – Webcast
and Conference Call
Pretivm is hosting an Investor Day webcast and
conference call Wednesday, April 11, 2018 at 9:00 am PT (12:00 noon
ET).
Webcast and conference call details:
Wednesday, April 11, 2018 at 9:00 am PT (12:00 noon ET) |
Webcast |
www.pretivm.com |
Toll Free
(North America) |
1-800-319-4610 |
International and Vancouver |
604-638-5340 |
First Quarter 2018 Financial Results –
Webcast and Conference Call
Pretivm plans to release its first quarter 2018
operational and financial results after market close on Thursday,
May 10, 2018. The webcast and conference call to discuss these
results will take place Friday, May 11, 2018 at 8:00 am PT (11:00
am ET).
Webcast and conference call details:
Friday, May 11, 2018 at 8:00 am PT (11:00 am ET) |
Webcast |
www.pretivm.com |
Toll Free
(North America) |
1-800-319-4610 |
International and Vancouver |
604-638-5340 |
About Pretivm
Pretivm is ramping-up gold production at the
high-grade 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” and “forward looking statements” within the meaning of
applicable Canadian and United States securities legislation.
Statements contained herein that are not based on historical or
current fact, including without limitation statements containing
the words “anticipates,” “believes,” “may,” “continues,”
“estimates,” “expects,” and “will” and words of similar import,
constitute “forward-looking statements” within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking information may include, but is not limited to,
information with respect to: production and cost guidance; our
planned exploration and development activities, the accuracy of our
mineral resource estimates; capital and operating cost estimates;
production and processing estimates; the results, the adequacy of
Pretivm's financial resources, the estimation of mineral reserves
and resources including the 2016 Valley of the Kings Mineral
Resource estimate and the Brucejack Mineral Reserve estimate,
realization of mineral reserve and resource estimates and timing of
development of Pretivm's Brucejack Mine, 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 Mine, timing and receipt of approvals, consents
and permits under applicable legislation, Pretivm's executive
compensation approach and practice, and statements regarding USD
cash flows and the recurrence of foreign currency translation
adjustments. Wherever possible, words such as “plans”, “expects”,
“guidance”, “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
28, 2018 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.
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