Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”)
reports that its planned ramp-up to 3,800 tonnes per day production
rate at its Brucejack Mine, and its underground exploration
drilling program, are both progressing on schedule. The company
also re-affirms its 2019 production guidance.
"Our goal is to provide long-term cash
generation and profitability at Brucejack,” said Joseph Ovsenek,
President & CEO of Pretivm. “Brucejack has proven itself as a
low cost, highly profitable mine. Now with reserve expansion
drilling underway, we are focused on demonstrating the potential
for Brucejack to be a top-tier gold producer well into the
future.”
2019 Production Guidance
Maintained
The Company expects to achieve its 2019 gold
production guidance of 390,000 ounces to 420,000 ounces and the
planned production ramp-up from 2,700 tonnes per day to 3,800
tonnes per day over the course of the year. During the first
quarter, mining operations have prioritized increasing the
development rate to 1,000 meters per month and opening up the
deposit to allow access to a greater number of stopes to support a
3,800 tonnes per day mining rate by year end. As the mine continues
to sequence through a lower grade area of the Valley of the Kings,
all stopes above cut-off grade of approximately 5.0 grams per tonne
gold are being mined as they become available for production.
Accordingly, gold grade is expected to average approximately 10.4
grams per tonne over the course of 2019; both grade and tonnes are
expected to be higher in the second half of the year.
Brucejack Ramp-up on
Schedule
The modifications and upgrades required to
sustainably process ore at the upgraded production rate of 3,800
tonnes per day are on schedule and will continue during regularly
scheduled shut-downs. The most significant upgrade is the shift
from concentrate bagging to a bulk loading system. The bulk loading
system is currently installed in a temporary location within the
mill, and is commissioned and operational. It is expected to be
installed in its permanent location and completely integrated in
the middle of the second quarter. Final modifications to the
flotation circuit will be scheduled upon delivery of final
components.
Underground development has been successfully
accelerating from 700 to 1,000 meters per month throughout the
quarter. Development is approaching 1,000 meters per month
and is expected to maintain that rate throughout the year to ensure
development remains ahead of production requirements to ensure
steady mining rates of 3,800 tpd for the future.
2019 Reserve Definition and Expansion
Drilling Ongoing
The 70,000-meter 2019 underground drill program
commenced early in the first quarter. More than 24,000 meters of
drilling in 183 drill holes have been completed to date. The
program is expected to improve reserve definition ahead of mining
and expand on the current Mineral Reserves at the Valley of the
Kings. Opportunities for expansion are located at depth, to the
west, to the east, and to the north-east of the currently defined
Mineral Reserve. Exploration in the early part of the program
focused westward towards the Brucejack fault and at depth below the
1200-meter level of the current development.
Drilling will continue through the year and is
expected to include zones prospective for additional reserve
expansion to the north-east of and at depth below the currently
defined Mineral Reserves where previous drill programs have
indicated the continuation of high-grade gold mineralization. A
re-interpretation of previous drill results from the north-east
indicates the presence of a repetition of the key stratigraphy that
hosts high-grade gold mineralization in the Valley of the
Kings.
Exploration drilling in 2015 intersected
high-grade gold 1,000 meters to the east of the Valley of Kings
below the Flow Dome Zone (see news release dated Oct 8,
2015). Resource expansion drilling to the east towards the
Flow Dome Zone is planned for later in the year depending on
development and permitting. Results will be released in due
course.
For a section view of the drill holes and the
targeted zones please see the following
link: http://ml.globenewswire.com/Resource/Download/06730fb9-c1b1-4dee-ae4e-1435ac3d2ea5
Underground Exploration Drilling for
Porphyry Source
In 2018, two 1,500-meter holes drilled east from
the Valley of the Kings intersected Brucejack-style mineralization
throughout demonstrating mineralization continuity between the
Valley of the Kings and the Flow Dome Zone, an area approximately
1,000 meters east of the Brucejack Mine (see news release dated
June 18, 2018). In addition, the drilling intersected anomalous
mineralization to suggest proximity to porphyry-style
mineralization at depth.
Based on the previous drill results and
follow-up geophysical program and mineral chemistry evaluation, two
deep holes were targeted to further test the porphyry potential
below the Valley of the Kings and the Flow Dome Zone. The first of
the two holes, VU-1785, drilled towards the south-east, was
recently completed at 2,000 meters downhole. Multiple Valley
of the Kings-style carbonate stockworks were visible in parts of
the drill core. An update on intersections will be provided
following the receipt of assay results and further
evaluation. Drilling will commence on the second hole in
early April.
Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat., Vice
President, Geology and Chief Geologist, Pretium Resources Inc. is
the Qualified Person (“QP”) responsible for the Brucejack Mine
reserve definition and exploration drilling, and has reviewed and
approved the scientific and technical information contained in this
news release relating thereto.
Lyle Morgenthaler, B.A.Sc., P.Eng., Chief Mine
Engineer, Pretium Resources Inc. is the QP responsible for
Brucejack Mine development, and has reviewed and approved the
scientific and technical information contained in this news release
relating thereto.
Reserve and Resource Estimate Update
Webcast and Conference Call
Updated Mineral Resource and Mineral Reserve
estimates for the Valley of the Kings and an updated life of mine
plan for the Brucejack Mine will be provided before market open on
April 4, 2019.
A webcast investors day session to coincide with
the release of these updates will also provide an overview of grade
reconciliation, updated geological interpretation and mining
initiatives, among other things.
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 |
|
|
|
First Quarter 2019 Operational and
Financial Results – Webcast and Conference Call
The first quarter 2019 operational results and
all production results going forward will be released with our
quarterly financial statements.
Pretivm plans to release its first quarter 2019
operational and financial results after market close on Thursday,
May 2nd, 2019. The webcast and conference call to discuss these
results will take place Friday, May 3rd, 2019 at 8:00 am PT (11:00
am ET).
Webcast and conference call details:
|
Friday, May 3,
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”, “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:
production and cost guidance; the expected grade of gold produced;
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, exploration and
development activities and the costs and timing thereof; our
operational grade control program, including plans with respect to
our infill drill program and our local grade control model; grade
reconciliation, updated geological interpretation and mining
initiatives with respect to the Brucejack Mine; our operational
strategy; capital and operating cost estimates and timing thereof;
production and processing estimates; our future operational and
financial results and the 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;
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 Update and
the 2016 Brucejack Mineral Reserve Estimate; the updates to our
Mineral Reserves and Mineral Resources Estimates and our life of
mine plan and the anticipated timing thereof; realization of
Mineral Reserve and Resource Estimates; timing of further
development of our Brucejack Mine; results of future exploration
and drilling; 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, and anticipated capital costs
in connection with approvals, consents and permits under applicable
legislation; our executive compensation approach and practice; our
relationship with community stakeholders; litigation matters;
environmental matters; our effective tax rate and the recognition
of our previously unrecognized income tax attributes; new
accounting standards applicable to the Company, including methods
of adoption and the effects of adoption of such standards; 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,
2019, Form 40-F dated March 28, 2019, 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.
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