Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”)
reports full year and fourth quarter 2018 gold production results
and summary for its underground Brucejack Mine.
Full Year 2018 Production Summary |
Fourth Quarter 2018 Production Summary |
- 376,012 ounces of gold produced (achieving 97% of guidance of
387,000 ounces for the full year)
|
- 96,342 ounces of gold produced (achieving 95% of guidance of
200,000 ounces for the second half of 2018)
|
- 11.9 grams per tonne gold mill feed grade (12.9 g/t for Q2-Q4
with grade control program implemented)
|
- 11.5 grams per tonne gold mill feed grade
|
|
|
- 1,005,603 tonnes of ore milled
|
- 267,048 tonnes of ore milled
|
- 2,755 tonnes per day ore milled
|
- 2,903 tonnes per day ore milled
|
Fourth Quarter 2018 Company
Highlights
- Repurchased 100% of the construction financing 8% precious
metals stream for US$237 million
- Closed US$480 million bank debt facility to refinance
construction credit facility
- Received amended permits to increase production to 3,800 tonnes
per day
- Ended the quarter after repurchasing the stream with a cash
position over US$45 million as of December 31, 2018
“We ended 2018 on a successful note with the
closing of the bank debt facility, repurchase of our precious
metals stream, payout of our construction credit facility, receipt
of amended permits to increase production to 3,800 tonnes per day
and production of over 376,000 ounces of gold, all in our first
calendar year of production which included six months of ramp up,”
said Pretivm President & CEO Joseph Ovsenek. “Our successes can
be attributed to the hard work of our team and the consistent
profitability of the high-grade Brucejack Mine - the cornerstone of
our plan to build Pretivm as a Tier 1 Canadian gold producer.”
2018 Gold Production at
Brucejack
Commercial production commenced at the Brucejack
Mine in July 2017, with ramp-up continuing into the first half of
2018 and steady-state production achieved in July 2018. Key
advances over the course of mining in 2018 have included the
implementation in the first quarter of the grade control program
into short-term mine planning.
Mr. Ovsenek continued “As we have discussed in
the past, the high variability of the gold mineralization
throughout the Valley of the Kings deposit is a key characteristic
of the Brucejack Mine and gold production is managed with grade
control, the sequence of the mine plan and the availability of
stopes for optimal grade blending. As we continue to generate
significant cash flow, we will build on what we have learned mining
the gold mineralization at the Valley of the Kings over the first
six quarters of production to further refine our grade control
program and mining methods in order to reduce dilution and optimize
grade to the mill.”
During the fourth quarter, the grade control
program over-called actual mill production of 96,342 ounces of
gold, resulting in the mine producing 188,983 ounces of gold for
the second half of 2018, or 95% of gold production guidance of
200,000 ounces. The grade control program will continue to be
refined over the coming quarters to improve short-term grade
estimation and predictability. The mine produced 376,012 ounces of
gold for the full year 2018, achieving 97% of gold production
guidance of 387,000 ounces.
A review of mining methods is underway to
potentially reduce dilution and development costs with the use of
longitudinal long-hole stoping.
2019 Catalysts
A specific timeline for ramp-up to the 3,800
tonnes per day production rate, along with production and cost
guidance for 2019 is expected later in the quarter. Minor mill
upgrades to support the production rate increase are required and
will be completed during regularly scheduled mill shutdowns.
Grade reconciliation for 2018 and updated
Mineral Resource and Mineral Reserve estimates for the Brucejack
Mine will be provided later this quarter or early next quarter.
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 and the Brucejack Mine exploration
drilling.
Fourth Quarter 2018 Operational and
Financial Results – Webcast and Conference Call
Pretivm plans to release its fourth quarter and
year-end 2018 operational and financial results after market close
on Thursday, February 14, 2019. The webcast and conference call to
discuss these results will take place Friday, February 15, 2019 at
8:00 am PT (11:00 am ET).
Webcast and conference call details:
Friday,
February 15, 2019 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 a low-cost intermediate gold producer
with 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 or, “forward looking statements” within the
meaning of applicable Canadian and United States securities
legislation (collectively herein referred to as “forward-looking
statements” or “forward-looking information”). 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 release of the Company’s fourth quarter and
year-end 2018 operational and financial results; production and
cost guidance (including without limitation, all-in sustaining cost
guidance) and the timing thereof; anticipated results of our
operations; our planned mining, exploration and development
activities; our mining methods, operational grade control program
and grade variability; ramp-up of the Brucejack Mine to 3,800
tonnes per day production rate and mill upgrades to support the
same, and the timing thereof; the reconciliation for 2018 and the
reconciliation of the global resource model for the Valley of the
Kings, and the anticipated timing thereof; capital and operating
cost estimates; production and processing estimates; the future
price of gold and silver; the adequacy of our financial resources;
our intentions with respect to our capital resources; our financing
activities, including plans for the use of proceeds thereof; the
estimation of mineral reserves and resources, including the 2016
Valley of the Kings Mineral Resource estimate and the Brucejack
Mineral Reserve estimate, the update to the mineral resource and
mineral reserve estimates for the Brucejack Mine and the
anticipated timing thereof; realization of mineral reserve and
resource estimates; timing of further development of our Brucejack
Mine; costs and timing of future exploration and development;
results of future exploration and drilling and timing of such
results; capital and operating cost estimates; timelines and
similar statements relating to the economic viability of the
Brucejack Mine, including mine life, total tonnes mined and
processed and mining operations; timing, receipt, and anticipated
effects of approvals, consents and permits under applicable
legislation; our executive compensation approach and practice; our
relationship with community stakeholders; litigation matters;
environmental matters; 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 to the extent that they involve estimates of the
mineralization that will be encountered if the property is
developed. 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,
2018, Form 40-F dated March 28, 2018 and other applicable
disclosure documents filed on SEDAR at www.sedar.com and in the
United States through EDGAR at the Security and Exchange
Commission’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
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.
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